Agriculture Infrastructure Fund • AIF / NAIF
NAIF Scheme (AIF)
Loan, Eligibility & How to Apply
The Agriculture Infrastructure Fund (AIF), also called NAIF, funds post-harvest infrastructure like cold storage, warehouses and processing units. Loans up to ₹2 Crore per project at an effective ~9% rate, 3% interest subvention for 7 years, and 100% credit guarantee via CGTMSE - so no collateral required.
Sapno Se Safalta Tak
₹0 Cr
Max Loan Per Project
0%
Interest Subvention p.a.
0 Yrs
Subvention Duration
1.5L+
Projects Sanctioned
What It Is
What Is The Agriculture Infrastructure Fund (AIF / NAIF Scheme)?
The Agriculture Infrastructure Fund (AIF) - referred to as NAIF in some government documents - is a central sector scheme of the Ministry of Agriculture & Farmers Welfare, launched in May 2020 with a total corpus of ₹1 Lakh Crore. It provides medium to long-term debt financing for post-harvest management infrastructure and community farming assets.
As of January 2026, over 1,50,431 projects have been sanctioned with ₹80,224 crore in loans, and ₹49,841 crore has already been disbursed across more than 1.13 lakh projects - mobilising a total investment of ₹1,27,508 crore across India. The scheme runs through FY 2032-33.
What makes AIF different from most government loan schemes is the combination: the government pays the full CGTMSE guarantee fee on your behalf, so lenders need no collateral on loans up to ₹2 Crore, and the 3% subvention directly reduces your EMI burden for seven years.
Why Founders Apply
- 01
Loan up to ₹2 Crore per project; can borrow more without subvention
- 02
3% interest subvention for 7 years - effective rate ~9% p.a.
- 03
100% credit guarantee by CGTMSE - no collateral required
- 04
Moratorium on principal: 6 months to 2 years
Key Benefits
Key Benefits Of The AIF / NAIF Scheme
Subvention, CGTMSE Cover, A Principal Moratorium, And A 60-Day Lender Decision - On The Agriinfra Portal.
01
3% Interest Subvention For 7 Years
The government credits 3% subvention directly against your loan account, reducing the effective borrowing cost to approximately 9% per annum for the full 7-year duration. Interest is charged from disbursement day one - including during the moratorium period.
02
100% Collateral-Free Guarantee Via CGTMSE
Credit guarantee for loans up to ₹2 Crore is provided by CGTMSE with 100% coverage. The government bears the guarantee fee. FPOs additionally qualify for guarantee through NABSanrakshan (post August 2024).
03
Moratorium Of 6 Months To 2 Years
Principal repayment is deferred for 6 months to 2 years from first disbursement, aligned with the project's cash flow ramp-up. Interest, including the subvention component, applies from disbursement date.
04
Up To 25 Projects Per Applicant
A single entity can avail AIF benefits for up to 25 individual projects across different locations. State agencies, national/state federations of cooperatives, FPO federations and SHG federations are exempt from this cap.
05
Online Application With 60-Day Decision
Applications are submitted entirely online through agriinfra.dac.gov.in - no physical forms or branch visits needed. Lenders must communicate their sanction decision within 60 days of application.
06
Broad Project Coverage - Expanded August 2024
The Union Cabinet expanded eligible project types in August 2024 to include integrated primary-and-secondary processing units, PM-KUSUM solar convergence, and a broader set of community farming assets including precision farming equipment and renewable energy infrastructure.
Who Can Apply
Who Can Apply For The AIF / NAIF Scheme?
AIF Covers 17 Entity Types. The Project Must Be A Viable Agriculture-Sector Activity, And A Minimum Promoter Contribution Of 10% Of Total Project Cost Is Required.
Farmers, FPOs & Groups
Farmers & Agri-Entrepreneurs
Individual farmers with land ownership or a registered lease of at least 7 years, and agri-entrepreneurs setting up eligible infrastructure, can apply directly through the portal.
FPOs & Federations
Registered FPOs and their federations are a primary target group. FPOs also benefit from the NABSanrakshan guarantee (in addition to CGTMSE).
Cooperatives & PACS
Primary Agricultural Credit Societies, marketing cooperatives, multipurpose cooperatives, and their state and national federations are eligible. State federations are exempt from the 25-project cap.
Enterprises & Public Bodies
SHGs
Women-led SHGs and SHG federations engaged in agri-linked activities can access AIF loans for community-level post-harvest and processing infrastructure.
MSMEs, Startups & Companies
MSME-registered agri-processing and cold chain businesses, DPIIT-recognised agri startups, and private limited companies or LLPs with agriculture-sector projects are eligible.
APMCs, State Agencies & PPP
Agricultural Produce Market Committees (added February 2021), state agencies, and projects under central or state government PPP frameworks qualify, and are exempt from the 25-project ceiling.
How To Apply
How To Apply For The AIF / NAIF Scheme
Five Steps From Agriinfra.Dac.Gov.In To Disbursement And 3% Subvention On Your Loan Account.
- STEP 01
PROCESS
Register On Agriinfra.Dac.Gov.In
Create an account on the official Agriculture Infrastructure Fund portal. The entire application process - from submission to sanction communication - is online.
- STEP 02
PROCESS
Prepare A Detailed Project Report (DPR)
Draft a DPR covering the project type, location, technical design, cost breakup, land details, revenue model and cash flow projections. This is the lender's primary basis for appraisal.
- STEP 03
PROCESS
Submit Application With Supporting Documents
Upload the DPR, KYC, entity registration, land/lease papers and financial statements. The Project Management Unit (PMU) reviews and forwards to the lending institution.
- STEP 04
PROCESS
Lender Appraisal - 60-Day Decision
The lender conducts a site visit plus technical and financial appraisal, and must communicate a decision within 60 days. CGTMSE cover applies automatically for loans up to ₹2 Crore.
- STEP 05
PROCESS
Loan Sanction, Disbursement & Subvention
The sanctioned loan is disbursed in tranches linked to project milestones. The 3% interest subvention is credited by the government directly to your loan account.
Paperwork
Documents Required For AIF Loan Application
Important: Most AIF rejections and delays come down to a weak DPR or missing documents - not the project itself. Vikas Bharat helps agri-entrepreneurs and FPOs structure the DPR, identify the right lending partner, and move through the CGTMSE guarantee process. After eligibility we send a file-specific checklist.
Detailed Project Report (DPR) - technical specifications, location, cost estimates, revenue projections and operational plan
KYC - Aadhaar and PAN of all promoters, directors or authorised signatories
Entity registration - incorporation, partnership deed, FPO/cooperative certificate, Udyam, or equivalent
Land ownership or a registered lease of at least 7 years covering the project site
Financial statements - audited last 2-3 years, or projected financials for new entities
Bank statements - last 6-12 months for the entity and promoters
GST certificate (if applicable) and latest ITRs of the entity and key promoters
- What is the difference between NAIF and AIF?
- They refer to the same scheme. AIF is the official name - Agriculture Infrastructure Fund. NAIF (National Agri Infra Financing Facility) is an alternate abbreviation used in some government communications and media. The portal is agriinfra.dac.gov.in and the administering ministry is the Ministry of Agriculture & Farmers Welfare.
- Can I take a loan larger than ₹2 Crore under this scheme?
- Yes. The scheme does not cap the loan amount - borrowers can apply for whatever the project requires. However, the 3% interest subvention and the CGTMSE credit guarantee both apply only on the portion up to ₹2 Crore. The amount above ₹2 Crore is financed at the lender's standard rate with normal collateral requirements.
- Is interest charged during the moratorium period?
- Yes, interest is payable from the date of first disbursement - including during the moratorium period. The moratorium applies only to principal repayment. The 3% subvention does apply to this interest during the moratorium phase.
- Do I need to arrange collateral for an AIF loan?
- For loans up to ₹2 Crore, no collateral is required. CGTMSE provides 100% credit guarantee and the government pays the guarantee fee on your behalf. The lender cannot ask for third-party collateral or guarantors for this portion of the loan.
- How many projects can a single entity apply for?
- A single entity can avail AIF benefits for up to 25 projects across different locations - each eligible for its own ₹2 Crore loan with the 3% subvention. This cap does not apply to state agencies, national/state federations of cooperatives, federations of FPOs, or federations of SHGs.
- What changed after the August 2024 Cabinet expansion?
- The Union Cabinet approved significant changes in August 2024: integrated primary-plus-secondary processing units became eligible as a single project; the PM-KUSUM Component-A solar scheme was made convergent with AIF; Panchayats were added as eligible beneficiaries; and the range of community farming assets was broadened to include more precision farming and renewable energy infrastructure. Standalone secondary processing units remain ineligible.
- How long does the loan approval process take?
- The AIF guidelines require lenders to communicate their sanction decision within 60 days of application. In practice, having a complete DPR and clean documentation significantly reduces the actual turnaround. The PMU verification step typically runs in parallel during the first 30 days.
- What is the most common reason applications get delayed?
- An incomplete or poorly structured Detailed Project Report. Lenders cannot appraise the loan without credible technical specifications, realistic cost estimates and a clear revenue model. The second most common issue is unclear land documents - make sure land ownership or lease tenure covers at least 7 years from application date.
AIF / NAIF Questions, Answered
NAIF Vs AIF, The ₹2 Crore Cap, Moratorium Interest, Collateral, Project Limits, August 2024 Changes And Why Files Stall.
What is the difference between NAIF and AIF?
They refer to the same scheme. AIF is the official name - Agriculture Infrastructure Fund. NAIF (National Agri Infra Financing Facility) is an alternate abbreviation used in some government communications and media. The portal is agriinfra.dac.gov.in and the administering ministry is the Ministry of Agriculture & Farmers Welfare.
Can I take a loan larger than ₹2 Crore under this scheme?
Is interest charged during the moratorium period?
Do I need to arrange collateral for an AIF loan?
How many projects can a single entity apply for?
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