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.
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.
- Loan up to ₹2 Crore per project; can borrow more without subvention
- 3% interest subvention for 7 years — effective rate ~9% p.a.
- 100% credit guarantee by CGTMSE — no collateral required
- Government pays the CGTMSE guarantee fee
- Moratorium on principal: 6 months to 2 years
- 17 eligible entity types including FPOs, MSMEs, startups, individuals
Key Benefits of the AIF / NAIF Scheme
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.
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 — you pay nothing extra for this cover. FPOs additionally qualify for guarantee through NABSanrakshan (post August 2024).
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.
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.
Online Application with 60-Day Decision
Applications are submitted entirely online through agriinfra.dac.gov.in — no physical forms or branch visits needed. Lenders are required to communicate their sanction decision within 60 days of application.
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 for the AIF / NAIF Scheme?
AIF covers 17 entity types under the official guidelines. The common thread across all of them: the project must be in a viable agriculture-sector activity and the borrower must meet the lender's credit assessment. A minimum promoter contribution of 10% of total project cost is required.
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.
Registered FPOs and their federations are a primary target group. FPOs also benefit from the NABSanrakshan guarantee (in addition to CGTMSE), improving credit access for member-farmer groups.
Primary Agricultural Credit Societies (PACS), marketing cooperatives, multipurpose cooperatives, and their state and national federations are all eligible. State federations are exempt from the 25-project cap.
Women-led SHGs and SHG federations engaged in agri-linked activities can access AIF loans for community-level post-harvest and processing infrastructure.
MSME-registered agri-processing and cold chain businesses, DPIIT-recognised agri startups, and private limited companies or LLPs with agriculture-sector projects are eligible.
Agricultural Produce Market Committees (APMCs, added February 2021), state agencies, and projects under central or state government PPP frameworks qualify. These entities are also exempt from the 25-project ceiling.
Documents Required for AIF Loan Application
The initial application is submitted online through agriinfra.dac.gov.in with digital documents. The lending institution conducts its own verification. A well-structured DPR is the single most important document — lenders cite incomplete DPRs as the leading cause of delays and rejections.
Detailed Project Report (DPR)
Technical specifications, project location details, cost estimates, revenue projections, and operational plan. This is non-negotiable — without a credible DPR the lender cannot appraise the project.
KYC — Identity & Address Proof
Aadhaar and PAN of all promoters, directors or authorised signatories.
Entity Registration Documents
Certificate of incorporation (company), partnership deed, FPO registration certificate, cooperative registration, MSME Udyam registration, or equivalent — as applicable to your entity type.
Land Ownership or Lease Agreement
Registered land documents confirming ownership, or a registered lease agreement for a minimum period of 7 years covering the project site.
Financial Statements
Audited financials for the last 2–3 years for existing entities. New entities submit projected financials with detailed assumptions.
Bank Statements
Last 6–12 months of bank statements for the applicant entity and its promoters.
GST & Tax Documents
GST registration certificate (if applicable) and latest filed ITRs of the entity and key promoters.
How to Apply for the AIF / NAIF Scheme
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. No branch visits or physical documents are required at the application stage.
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, so invest time getting it right — or work with a consultant who has done this before.
Submit Application with Supporting Documents
Upload the DPR, KYC documents, entity registration, land/lease papers and financial statements through the portal. The Project Management Unit (PMU) reviews and forwards to the relevant lending institution.
Lender Appraisal — 60-Day Decision Timeline
The lender conducts a site visit, technical and financial appraisal. The lender is required under the AIF guidelines to communicate their decision within 60 days of the application date. CGTMSE guarantee coverage is applied automatically for loans up to ₹2 Crore.
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 — your EMI reflects the subsidised rate from the start.
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. No branch visits or physical documents are required at the application stage.
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, so invest time getting it right — or work with a consultant who has done this before.
Submit Application with Supporting Documents
Upload the DPR, KYC documents, entity registration, land/lease papers and financial statements through the portal. The Project Management Unit (PMU) reviews and forwards to the relevant lending institution.
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 — your EMI reflects the subsidised rate from the start.
Lender Appraisal — 60-Day Decision Timeline
The lender conducts a site visit, technical and financial appraisal. The lender is required under the AIF guidelines to communicate their decision within 60 days of the application date. CGTMSE guarantee coverage is applied automatically for loans up to ₹2 Crore.
Frequently Asked Questions
Need Help Preparing Your AIF Application?
Most AIF rejections and delays come down to a weak DPR or missing documents — not the project itself. Our team works with agri-entrepreneurs and FPOs to structure the DPR, identify the right lending partner, and move through the CGTMSE guarantee process without back-and-forth.