The Agriculture Infrastructure Fund 2026 (AIF) is the Government of India’s landmark Rs.1 lakh crore financing facility for farmers, FPOs, agri-entrepreneurs, and cooperatives who want to build cold storage, warehouses, grading units, primary processing centres, and modern farm markets. Launched under the Aatmanirbhar Bharat Abhiyan, AIF provides a 3% annual interest subvention on loans up to Rs.2 crore — effectively making infrastructure loans significantly cheaper for every eligible applicant. The interest subvention and credit guarantee continue until 2032–33, making this one of the longest-running and highest-value agriculture support schemes in India. This complete 2026 guide covers the AIF scheme benefits, eligible projects, who can apply, loan structure, documents required, step-by-step application process, and expert comparison with similar schemes.
| Scheme Name | Agriculture Infrastructure Fund (AIF) |
| Ministry | Department of Agriculture & Farmers Welfare (DA&FW) |
| Total Corpus | Rs.1,00,000 crore (Rs.1 lakh crore) |
| Interest Subvention | 3% per annum on outstanding principal up to Rs.2 crore |
| Maximum Subvention Loan | Rs.2 crore per project (higher loans allowed; subvention capped at Rs.2 cr) |
| Loan Tenure | Up to 14 years (including moratorium of 6 months–2 years) |
| Credit Guarantee | CGTMSE coverage up to Rs.2 crore (Govt bears fee) |
| Application Portal | agriinfra.dac.gov.in (100% online) |
| Subvention Valid Until | 2032–33 (for disbursed loans) |
| Lending Institutions | 150+ empanelled banks, RRBs, cooperative banks, NBFCs |
- What is Agriculture Infrastructure Fund 2026?
- AIF Interest Subvention & Loan Structure
- Eligible Projects Under AIF Scheme 2026
- Who Can Apply – Eligibility Criteria
- Documents Required for AIF Application
- How to Apply for AIF Scheme 2026 Online – Step by Step
- Who Should Apply for Agriculture Infrastructure Fund?
- Credit Guarantee Coverage Under AIF
- AIF vs Other Agriculture Finance Schemes – Comparison
- Key Agri-Infrastructure & Finance Terms to Know
- Frequently Asked Questions (FAQs)
What is Agriculture Infrastructure Fund 2026?
The Agriculture Infrastructure Fund 2026 (AIF) is a Central Sector Scheme launched by the Government of India on 9 August 2020 as part of the Aatmanirbhar Bharat Abhiyan. It was created with a clear purpose: to solve the chronic under-investment in India’s post-harvest agricultural infrastructure — the cold chains, warehouses, grading units, and processing centres that help farmers get better prices and reduce crop wastage.
The scheme is implemented by the Department of Agriculture & Farmers Welfare (DA&FW), Ministry of Agriculture & Farmers Welfare, through an end-to-end online AIF Management Information System at agriinfra.dac.gov.in. This portal connects applicants with around 150 empanelled lending institutions — including public sector banks, private banks, small finance banks, regional rural banks (RRBs), cooperative banks, and select NBFCs — all operating under NABARD and DA&FW MoUs.
The total corpus of Rs.1 lakh crore was earmarked for disbursement by financial year 2025–26, with the 3% interest subvention and credit guarantee assistance continuing until 2032–33 on all loans already disbursed. This means even farmers who accessed AIF loans in 2021–22 continue to receive the subvention benefit for the full 7-year tenure of their loan.
AIF Interest Subvention & Loan Structure 2026
Understanding the Agriculture Infrastructure Fund loan structure helps you plan your project financing accurately. There is no capital or margin subsidy under AIF — the benefit is entirely in the form of reduced interest cost through the 3% annual subvention.
| Loan Feature | AIF Scheme Details |
|---|---|
| Interest Subvention Rate | 3% per annum on outstanding principal |
| Maximum Principal for Subvention | Rs.2 crore per project (no cap on total loan — subvention applies only up to Rs.2 cr) |
| Subvention Duration | Maximum 7 years from first disbursement date |
| Lending Rate Cap | 6-monthly/annual MCLR + 100 basis points; ceiling of 9% per annum |
| Moratorium Period | Minimum 6 months, maximum 2 years (interest payable during moratorium) |
| Loan Tenure | Up to 14 years including moratorium period |
| Repayment Structure | Based on project cash flow (flexible EMI) |
| Refinance Support | NABARD refinance available for cooperative banks and RRBs |
Practical example: If you take a Rs.2 crore AIF loan at 9% per annum, the government pays 3% interest on your behalf — meaning your effective interest cost is only 6% per annum for up to 7 years. On Rs.2 crore, this saves approximately Rs.6 lakh per year in interest outgo, or up to Rs.42 lakh over the 7-year subvention period — a substantial reduction in financing cost for rural agri-infrastructure projects.
Eligible Projects Under Agriculture Infrastructure Fund 2026
AIF covers a wide range of post-harvest management and community farming infrastructure. The projects listed in scheme guidelines are indicative — other viable agriculture infrastructure projects in similar categories are also eligible. Here are the key project types covered under AIF 2026:
- 🏭 Cold Storage Chains: Stand-alone cold storages, integrated cold chain logistics (pre-cooling, refrigerated transport, distribution hubs) for fruits, vegetables, dairy, and meat.
- 🏗️ Warehousing & Silos: On-farm and off-farm storage godowns, scientific grain silos, underground storage chambers — helping farmers store produce and sell at better prices.
- ⚖️ Grading, Sorting & Assaying Units: Mechanised grading and sorting lines for fruits, vegetables, and grains; assaying units for quality testing and standardisation at mandi/farm level.
- 🏪 Primary Processing Centres: Cleaning, drying, milling, and primary value-addition units for cereals, pulses, oilseeds, spices, and horticultural produce. (Note: standalone secondary processing projects are not eligible under AIF and fall under MOFPI schemes.)
- 🌡️ Ripening Chambers: Controlled-atmosphere ripening units for bananas, mangoes, and other climacteric fruits used by traders, FPOs, and APMCs.
- 📦 Packaging Units: Primary packaging infrastructure for agriculture produce including grains, fruits, vegetables, and processed foods at the farm or mandi level.
- 🛣️ Logistics & Supply Chain Points: Primary processing for clusters of crops, export cluster supply chain infrastructure, integrated logistic points at mandis.
- 🤖 Smart & Precision Agriculture Infrastructure: Agricultural drones, boom sprayers, IoT sensors, automatic weather stations, blockchain/AI agriculture applications, GIS-based farm advisory services.
- ☀️ PM-KUSUM Solar Integration: Decentralised ground/stilt-mounted grid-connected solar power plants (Component A), standalone solar pumping systems (Component B), and solarisation of grid-connected agri-pumps (Component C) — all convergence-eligible with AIF.
- 🌿 Fodder & Feed Infrastructure: Hay bailing units, silage-making plants, Total Mixed Ration (TMR) units, fodder block-making units.
- 🖥️ E-Marketing Platforms: Digital trading platforms, e-NAM integration infrastructure, and supply chain services including e-marketing platforms at APMC level.
- 🏛️ PPP Projects: Projects promoted by Central, State, or Local Governments under PPP models for building viable farming assets or post-harvest management facilities.
Who Can Apply – Eligibility Criteria for AIF 2026
The Agriculture Infrastructure Fund 2026 has one of the widest eligibility frameworks among Government of India agriculture schemes. The following entities are eligible to apply:
| Applicant Category | Key Condition |
|---|---|
| Individual Farmers & Groups of Farmers | Land ownership proof, Aadhaar, bank account, viable project DPR |
| Agri-Entrepreneurs & Startups | Agriculture-graduate startups also eligible; business registration recommended |
| Self-Help Groups (SHGs) | Registered SHGs under DAY-NRLM or state rural livelihood missions, including Women-SHGs |
| Joint Liability Groups (JLGs) | Groups of individual farmers with collective liability and joint bank account |
| Farmer Producer Organizations (FPOs) | Registered as producer companies or cooperatives; can use NABARD FPO credit guarantee |
| PACS & Marketing Cooperatives | Primary Agricultural Credit Societies, marketing cooperative societies and their federations |
| APMCs | Agricultural Produce Market Committees for composite mandi-side infrastructure projects |
| Central/State/Local Body PPP Projects | Government-sponsored PPP projects for building community farming assets |
| Multipurpose Cooperative Societies | Registered multipurpose societies with livestock, agriculture, or processing objectives |
Documents Required for AIF Scheme 2026 Application
All AIF documents must be uploaded digitally on agriinfra.dac.gov.in. A full document checklist is available at agriinfra.dac.gov.in/Home/CheckList. The standard documents required are:
- 🪪 Aadhaar Card of applicant / authorised signatory (KYC)
- 🏦 Bank Account Details — cancelled cheque or passbook copy of the account linked to Aadhaar
- 📜 Land Ownership Proof or registered lease agreement for the proposed project site
- 📊 Detailed Project Report (DPR) with project description, capital cost breakdowns, revenue projections, implementation timeline, and expected cash flow
- 🧾 Vendor Quotations for all major equipment, machinery, civil construction, and cold chain components
- 🗺️ Project Site Layout / Map showing land dimensions and proposed infrastructure
- 📋 Registration Certificate for SHGs, FPOs, JLGs, PACS, or cooperatives (as applicable)
- 🎓 Educational / Experience Certificates for agri-graduate startups or technically qualified applicants
- 📝 NOC from Local Body or Gram Panchayat if the project requires local authority clearance
- 💼 Business PAN and GST Registration (for entities with turnover above GST threshold)
How to Apply for Agriculture Infrastructure Fund 2026 Online – Step by Step
The AIF application process is fully digital and handled through a single window portal. Follow these steps to apply for the Agriculture Infrastructure Fund 2026 interest subvention:
- Identify Your Eligible Project: Confirm that your planned infrastructure — cold storage, warehouse, grading unit, processing centre, or smart farming equipment — falls under the eligible project list at agriinfra.dac.gov.in/Home/EligibleProjects.
- Prepare a Detailed Project Report (DPR): Write a comprehensive DPR covering total project cost, land details, equipment specifications with quotations, revenue projections for 5–7 years, repayment plan, and implementation timeline. A weak DPR is the single biggest reason for rejection.
- Collect All KYC and Financial Documents: Gather Aadhaar, PAN, land papers, lease agreement, bank account details, and registration certificates. Ensure all names match exactly across documents.
- Register on the AIF Portal: Visit agriinfra.dac.gov.in and create an account using your Aadhaar-linked mobile number with OTP verification.
- Select a Participating Lending Institution: Use the portal’s directory to choose from 150+ empanelled banks and financial institutions. Involve your chosen bank early — ask the branch manager to review your DPR informally before formal submission.
- Upload Application and Documents: Fill the online Loan Application Form (LAF), upload your DPR, KYC documents, land papers, vendor quotations, and project site layout. No physical submission is required.
- State Level Sanctioning Committee (SLSC) Review: The SLSC reviews your application for eligibility and completeness, and forwards it to the participating bank for financial due diligence.
- Bank Due Diligence and Loan Sanction: The bank evaluates your DPR, CIBIL score, creditworthiness, and collateral (CGTMSE coverage available up to Rs.2 crore — Govt bears guarantee fee). After approval, the bank uploads the sanction letter on the portal.
- Loan Disbursement: After all conditions in the sanction letter are met, the bank disburses the loan in stages based on project progress. Repayment is structured on project cash flow.
- Interest Subvention Credit: The 3% interest subvention is credited to your loan account quarterly by the Government, reducing your effective interest burden throughout the 7-year subvention period.
- Track Application Status: Log in to agriinfra.dac.gov.in and use the dashboard to track your application at every stage — from SLSC review to bank sanction and disbursement.
Who Should Apply for Agriculture Infrastructure Fund 2026?
The AIF scheme is ideal for anyone building agriculture infrastructure at the farm, village, or mandi level in India. Here are the profiles best suited to benefit from this government scheme:
- 🧑🌾 Progressive Farmers with Storage Plans: Any farmer planning to build a godown, warehouse, or on-farm cold storage unit to hold produce and sell at better off-season prices can access AIF at just 6% effective interest (after 3% subvention).
- 🏢 FPOs and Farmer Cooperatives: Farmer Producer Organizations wanting to build shared post-harvest infrastructure — grading lines, pack houses, cold chain links — for their member farmers benefit from AIF’s wide eligibility and FPO credit guarantee coverage.
- 👩 Women SHGs Under DAY-NRLM: Women’s Self-Help Groups aligned with the National Rural Livelihood Mission can access AIF for primary processing units, packaging, and value-addition infrastructure — qualifying for both AIF interest subvention and SHG equity support.
- 🎓 Agriculture Graduate Startups: Young agri-entrepreneurs with a degree in agriculture, horticulture, food technology, or allied sciences can apply directly as startups for precision farming infrastructure, e-marketing platforms, or agri-logistics projects.
- 🏪 APMC and Mandi Operators: Agricultural Produce Market Committees planning composite mandi infrastructure — electronic weighbridges, assaying labs, cold storage at mandi premises — are covered under AIF with PPP project provisions.
- 🌿 Horticulture & Perishables Farmers: Farmers growing fruits, vegetables, flowers, or spices who need ripening chambers, pre-cooling units, or refrigerated transport links to reduce post-harvest losses of 20–30% in perishable crops.
- ☀️ PM-KUSUM Beneficiaries: Farmers already under PM-KUSUM can use AIF convergence to finance the balance project cost of solar pump systems and decentralised solar plants at preferential interest rates.
- 🐄 Dairy, Poultry & Livestock Processors: Entrepreneurs setting up primary milk chilling units, poultry processing centres, meat cold chains, or egg storage facilities can access AIF for financing these post-harvest value chain assets.
Credit Guarantee Coverage Under AIF Scheme
One of the most farmer-friendly features of the Agriculture Infrastructure Fund 2026 is the government-paid credit guarantee — which allows smaller borrowers to get loans without pledging land or property as collateral.
- 🛡️ CGTMSE Coverage: AIF loans up to Rs.2 crore are eligible for coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The Central Government bears the guarantee fee — so the borrower pays nothing extra for this protection.
- 🏦 FPO Credit Guarantee (NABSanrakshan): FPO-led AIF projects can use the NABARD FPO Credit Guarantee managed through NABSanrakshan Trustee Company Pvt. Ltd. as an alternative to CGTMSE — often at higher coverage for FPOs under the 10,000 FPO Formation Scheme.
- 🤝 Two Parallel Tracks: CGTMSE for individual and SHG borrowers; FPO credit guarantee for producer organisations. Both tracks allow lending institutions to reduce collateral requirements, making AIF accessible to asset-light rural entrepreneurs.
- 📊 CIBIL Score Still Matters: Even with CGTMSE coverage, banks evaluate CIBIL score, repayment history, and project viability. Applicants with CIBIL score above 650 have significantly higher sanction rates under AIF.
AIF vs Other Agriculture Finance Schemes – Comparison 2026
| Feature | Agriculture Infrastructure Fund (AIF) | NABARD Rural Infrastructure Dev. Fund (RIDF) | PM Formalization of Micro Food Enterprises (PMFME) |
|---|---|---|---|
| Type of Benefit | 3% interest subvention on loans | Low-interest lending to state govts | 35% capital subsidy up to Rs.10 lakh |
| Maximum Benefit Amount | Rs.6 lakh/yr interest saving on Rs.2 cr loan | State-level infrastructure projects | Rs.10 lakh capital subsidy per unit |
| Who Can Apply | Individual farmer, FPO, SHG, PACS, APMC, startup | State governments only | Individual micro food processors |
| Project Types | Cold storage, warehouse, grading, processing, smart agri | Irrigation, roads, bridges (state infra) | Food processing units (micro level) |
| Application Portal | agriinfra.dac.gov.in (100% online) | State finance departments | pmfme.mofpi.gov.in |
| Loan Tenure | Up to 14 years (with 2 yr moratorium) | 10–15 years (state-specific) | Not a loan scheme; direct subsidy |
| Can be Stacked? | Yes — MIDH, SMAM, PMKSY, PM-KUSUM | No stacking for same project | Can combine with SHG credit linkage |
| Best For | Post-harvest infra, cold chain, warehouse, FPO projects | State rural infrastructure | Small food processing entrepreneurs |
Key Agri-Infrastructure and Farm Finance Terms You Must Know
If you are applying for the Agriculture Infrastructure Fund 2026 or planning an agri-infrastructure business, understanding these terms will help you communicate effectively with banks, SLSCs, and project management units.
- Interest Subvention: A government subsidy on the interest component of a loan — not on the principal. Under AIF, the Central Government pays 3% of your outstanding loan interest annually for up to 7 years, reducing your effective cost of borrowing.
- CGTMSE (Credit Guarantee Fund Trust for MSEs): A government-backed guarantee scheme that allows banks to lend up to Rs.2 crore without collateral. For AIF loans, the Government pays the CGTMSE fee, making collateral-free lending genuinely free for eligible borrowers.
- SLSC (State Level Sanctioning Committee): The state-level committee that reviews AIF applications for eligibility, forwards approved applications to empanelled banks, and monitors scheme implementation at the state level.
- Post-Harvest Management Infrastructure: Storage, cooling, grading, packing, processing, and transport facilities that handle produce after harvest — the primary focus of AIF investment.
- Cold Chain: An uninterrupted temperature-controlled supply chain from farm to consumer — including pre-cooling, refrigerated transport, cold storage, and distribution hubs — essential for reducing wastage of perishable crops.
- MCLR (Marginal Cost of Funds-based Lending Rate): The benchmark interest rate banks use to price loans. AIF caps lending rate at MCLR + 100 basis points (maximum 9%), ensuring farmers get affordable rates even before the 3% subvention.
- DPR (Detailed Project Report): The mandatory business plan document for AIF applications — covering total project cost, land details, equipment quotations, revenue projections, cash flow, and implementation timeline. A high-quality DPR is the most critical factor in getting fast loan approval.
- e-NAM (Electronic National Agriculture Market): India’s online trading portal for agricultural commodities connecting mandis across the country. AIF supports e-NAM integration infrastructure and e-marketing platforms at APMC level.
- NABARD Refinance: NABARD provides need-based refinance support to cooperative banks and RRBs participating in AIF — enabling smaller regional financial institutions to lend under the scheme without liquidity constraints.
- FPO (Farmer Producer Organization): A collective entity registered under the Companies Act or Cooperative Societies Act by a group of farmers for aggregating produce, accessing markets, and availing institutional finance. FPOs are among the most-favoured applicant categories under AIF 2026.
Frequently Asked Questions – Agriculture Infrastructure Fund 2026
What is Agriculture Infrastructure Fund 2026 (AIF)?
The Agriculture Infrastructure Fund 2026 is a Central Sector Scheme by the Government of India with a total corpus of Rs.1 lakh crore. It provides medium- to long-term debt financing at a 3% annual interest subvention (on loans up to Rs.2 crore) for building cold storage, warehouses, grading units, processing centres, and other post-harvest management infrastructure across India. Applications are made online at agriinfra.dac.gov.in.
How much interest subvention does AIF give in 2026?
AIF provides a 3% per annum interest subvention on the outstanding loan principal up to Rs.2 crore per project, paid for a maximum of 7 years from the first disbursement date. The lending rate is capped at MCLR + 100 bps (maximum 9%), making the effective interest rate as low as 6% per annum for eligible borrowers — saving up to Rs.42 lakh on a Rs.2 crore loan over 7 years.
Who can apply for Agriculture Infrastructure Fund 2026?
Individual farmers, groups of farmers, agri-entrepreneurs, agriculture-graduate startups, SHGs, JLGs, FPOs, PACS, marketing cooperatives, APMCs, multipurpose cooperative societies, and Central/State Government-sponsored PPP projects are all eligible to apply for AIF 2026 at agriinfra.dac.gov.in.
What is the loan tenure and moratorium under AIF scheme?
AIF loans have a maximum tenure of 14 years including the moratorium period. The moratorium on principal repayment ranges from a minimum of 6 months to a maximum of 2 years, with interest payments required during the moratorium. Repayment is structured around the project’s actual cash flow — making it practical for seasonal agri-infrastructure businesses.
Is collateral required for AIF loans up to Rs.2 crore?
Not necessarily. AIF loans up to Rs.2 crore are eligible for CGTMSE credit guarantee coverage, with the guarantee fee paid by the Central Government. This enables banks to lend without demanding land or property as collateral for many small borrowers. However, banks still evaluate CIBIL score and project viability, so a good credit history and a strong DPR remain important.
Can AIF be combined with PM-KUSUM or MIDH subsidy?
Yes. Agriculture Infrastructure Fund 2026 is explicitly designed for convergence with other government schemes including PM-KUSUM (Component A, B, C solar), MIDH (horticulture infrastructure subsidy), SMAM (farm machinery), PMEGP, AMI, ACABC, and NHB. Each scheme applies to a different component of the project cost, so stacking is permitted without duplication of benefit on the same expenditure head.
How do I apply for AIF scheme online in 2026?
Visit agriinfra.dac.gov.in, register using your Aadhaar-linked mobile number, select an empanelled lending institution, prepare and upload a Detailed Project Report (DPR) with all required documents, and submit the online application form. The State Level Sanctioning Committee reviews the application, after which the bank completes due diligence, sanctions the loan, and the interest subvention begins from the first disbursement date.
What is the official portal for Agriculture Infrastructure Fund?
The official portal for Agriculture Infrastructure Fund is agriinfra.dac.gov.in, maintained by the Department of Agriculture & Farmers Welfare. The portal provides applicant registration, DPR upload, bank selection, application tracking, and a list of 150+ participating lending institutions. The document checklist is available at agriinfra.dac.gov.in/Home/CheckList.
Explore more government agriculture schemes and farmer support programs on our Agriculture Schemes and Kisan Yojana pages. This guide is regularly reviewed and updated — bookmark this page for the latest AIF 2026 updates and notifications.
Official Resources:
- 🌐 AIF Official Portal – agriinfra.dac.gov.in
- 🏛️ Ministry of Agriculture & Farmers Welfare – agricoop.nic.in
- 🏦 NABARD – nabard.org (Refinance & FPO Credit Guarantee)
- 📋 Press Information Bureau – AIF Scheme Updates – pib.gov.in
Last Updated: June 2026
