How to Apply for AIF Scheme:Complete Guide to the Agriculture Infrastructure Fund (NAIFF)

Any individual farmer setting up a viable agri infrastructure project such as a warehouse, cold room or custom hiring centre can apply for an AIF loan with full interest subsidy benefits.

Farmer Producer Organisations are priority borrowers under AIF. They can take loans for aggregation, storage and processing assets, and get credit guarantee through CGTMSE or NABSanrakshan.

Primary Agricultural Credit Societies, marketing cooperatives, multipurpose cooperatives and their federations are eligible and have historically been major AIF borrowers, especially for godowns.

Individuals and private firms — proprietorships, partnerships, LLPs and companies — running agri businesses can use the agri infrastructure loan scheme to build storage, processing or supply-chain facilities.

DPIIT-recognised and other agri startups building smart farming, precision agriculture or post-harvest technology infrastructure qualify, provided the project is bankable and agriculture-linked.

Self Help Groups, Joint Liability Groups and their federations can apply collectively, making AIF a strong option for women-led rural enterprises building community farming assets.

Agricultural Produce Market Committees, state agencies, and Central/State or local body sponsored Public-Private Partnership projects are also eligible to borrow under the scheme.

Every applicant must own the project land or hold a valid registered lease. Banks commonly expect the lease to run at least as long as the 7-year loan period.

Aadhaar and PAN of the applicant, or of all partners, directors or office-bearers in the case of firms, companies, FPOs and cooperatives.

Registration certificate, partnership deed, LLP agreement, MoA/AoA, or cooperative/FPO registration, along with the board resolution authorising the AIF loan application.

Udyam Registration Certificate for MSMEs and agri-entrepreneurs; it helps with CGTMSE coverage and proves enterprise status to the lender.

A bankable DPR showing project cost, technical feasibility, capacity, revenue model, cash-flow projections and repayment schedule — the single most important AIF document.

Ownership papers or a registered lease deed for the project site, typically covering at least the loan tenure, plus land-use conversion if needed.

Last 2–3 years' ITRs, audited financials and 12 months' bank statements; new units submit projected financials and promoters' net worth statements.

Supplier quotations for machinery and equipment, and civil work estimates from a qualified engineer or architect to support the project cost.

Building plan approval, pollution control consent, FSSAI (for processing), electricity sanction and any other statutory permissions applicable to the project.

Every eligible AIF loan gets 3% per annum interest subvention on amounts up to ₹2 crore, cutting your EMI significantly over the subsidy period.

The AIF scheme subsidy runs for a maximum of 7 years, including the moratorium. If your loan runs longer, the normal bank rate applies after year seven.

Loans up to ₹2 crore get credit guarantee under CGTMSE, with the guarantee fee paid by the Government, so banks need less or no collateral.

A moratorium of 6 months to 2 years lets your cold store, warehouse or processing unit start earning before principal repayments begin.

One entity can set up up to 25 projects in different locations, each eligible for its own ₹2 crore subsidy limit — ideal for scaling FPOs and agri businesses.

AIF can be combined with schemes like PMEGP, AMI, MIDH, NHB and PM-KUSUM, so you can stack a capital subsidy on top of the interest subsidy.

Lenders can charge at most 9% per annum on AIF loans up to ₹2 crore. After the 3% subvention, your effective rate can fall to around 6%.