Agriculture Infrastructure Fund: Who Qualifies and What You Get
Learn how to access interest subsidies on loans for post-harvest infrastructure projects in India.
The Agriculture Infrastructure Fund is a scheme designed to help people build facilities that support farming after the harvest is collected.
Who it's for
This fund is available to individual farmers, groups of farmers, and Farmer Producer Organizations (FPOs) who want to start post-harvest projects.
What you get
If you take out a loan for infrastructure, you can receive an interest subvention. This means the government provides a reduction in your interest rate, specifically a 3% reduction per annum on loans up to ₹2 crore.
What it costs you
To access this benefit, you cannot simply apply for a personal loan. You will need to provide a detailed project report and secure approval from your bank for the specific infrastructure you plan to build, such as cold storage.
The catch to know
This is not a general personal loan for daily farming expenses. You must present a formal business plan for a specific infrastructure project to qualify.
How to apply
- Prepare a detailed project report for your proposed infrastructure.
- Approach your bank to discuss the project and seek loan approval.
- Ensure your project meets the specific requirements for interest subvention.
- Follow the guidance provided by your local agricultural authorities or bank.