In July 2020, the Union Cabinet authorised the Agri Infrastructure Fund, a new pan-India central sector scheme (National Agriculture Infra Financing Facility). Through interest funding and financial support, the scheme will provide medium-long term financial assistance for investment in projects for post-harvest management framework and community farming assets.
The Agriculture Infrastructure Fund Scheme will be in place from FY2020 till FY2032 ( for 10 years).
Beneficiaries of the Agri Infrastructure Fund
The specified beneficiaries of the Agriculture Infrastructure Fund Scheme are mentioned as follows:
- Committee of the Agricultural Produce Market
- Agricultural Entrepreneurs
- Central sponsored Public-Private Partnership Projects
- Farmer Produce Organisations' Federation
- Groups of Joint Liability
- Public-Private Partnership Project sponsored by Local Bodies
- Advertising Cooperative Society
- Cooperative Societies
- Cooperatives' National Federation
- Primary Agricultural Loan Society
- Self Help Groups
- Federations of Self Help Groups
- Agencies at the State level
- State Federations of Cooperatives
- Public-Private Partnership Project sponsored by State
Benefits of the Agricultural Infrastructure Fund Scheme
- Interest subsidies of 3% per annum will be applied to all mortgages under this financing facility, up to a limit of Rs. 2 crores. This subsidy will be accessible for a maximum of seven years.
- Through the Agri Infrastructure Fund facility, credit guarantee coverage would also be offered for qualifying borrowers under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to Rs. 2 crores. The government will fund the cost of this coverage.
- In the case of FPOs, the loan guarantee can be obtained through the Department of Agriculture, Cooperation, and Farmers Welfare's FPO Promotion Scheme (DACFW).
Under this financing instrument, the repayment moratorium might be anywhere between 6 months and 2 years.
Application Procedure for the Agri Infrastructure Fund
One can initiate their application procedure by visiting the official website and getting themselves registered.
The list of documents that are prerequisites for the application process for the Agriculture Infrastructure Fund Scheme is as follows:
- Customer Request Letter for AIF Loan/Bank Loan Application Form that has been duly filled out and signed
- Passport-size photographs of the promoter/partners/director
- Voter ID card/PAN card/Aadhaar card/Driving license as proof of identity
- Residential proof: Voter ID card/Passport/Aadhaar card/Driving license/Electricity Bill/Latest Property Tax Bill; Business Office/Registered Office: Electricity Bill/Latest Property Tax Receipt/Driving license; and Certificate of Incorporation in the case of corporations/Registration Certificate in the case of partnership firms
- Registration Proof:
Articles of Association in the case of a corporation
In the case of a partnership, a Certificate of Firm Registration with the Registrar of Firms is required.
Certificate of Registration with the District Industries Centre (DIC)/Udyog Aadhar Copy in the case of MSMEs
- If available, a copy of the tax return from the last three years.
- If available, a three-year audited balance sheet.
- If appropriate, a GST certificate.
- If the property is leasehold, permission to loan the property from the leaseholder is required (for primary security)
- ROC Search Report on the promoter's/firm's/KYC company's paperwork
- A copy of the previous year's bank statement (If available)
- Existing loans that have a track record of being repaid (Loan Statement)
- Promoter's Net Worth Statements
- Local authority licenses, layout plans/estimates, and building sanctions
- If appropriate, a detailed project report
The Agriculture Infrastructure Fund Scheme will be instrumental in providing medium to long term debt financial assistance for post-harvest management framework and community farming assets.
Agri Infrastructure Fund Projects at farm-gate and aggregation sites would be funded using Rs. 1,00,000 crore financing facility.
FAQs on Agriculture Infrastructure Fund
Q.1. What exactly is the Agriculture Infrastructure Fund?
The Agriculture Infrastructure Fund is meant to provide medium-long term debt financial assistance for investment projects in post-harvest management framework and community farming assets through interest subvention and financial support.
Q.2. How can farmers apply for the Agriculture Infrastructure Fund Scheme?
The central government is asking people to register for the Agriculture Infrastructure Fund Scheme. Farmers can apply for a loan through the Agriculture Infrastructure Fund's official website.
Q.3. What does it mean to be an agribusiness owner under the Agriculture Infrastructure Fund Scheme?
Through the Agri Infrastructure Fund, the Agri-Entrepreneur (AE) Enterprise system seeks to streamline all procedures, starting with the selection of an AE and continuing through their day-to-day commercial activities and interactions with farmers.
Q.4. What kind of facility can be sanctioned under the Agriculture Infrastructure Fund financing scheme?
Agriculture Infrastructure Fund Projects at farm-gate and aggregation sites would be funded using Rs. 1,00,000 crore financing facility.