The Agriculture Infrastructure Financing Facility is a Government of India scheme created to support investment in farm-level and post-harvest infrastructure. It allows farmers and agri businesses to take loans for infrastructure that improves productivity, reduces cost, and increases income. Projects can include storage, processing, farm machinery, automation, precision agriculture, and drones.
Loans are available through scheduled banks, cooperative banks, RRBs, NBFCs, and other eligible institutions.
Both individuals and organisations can apply. The following are eligible:
A loan may be rejected if the applicant cannot demonstrate project viability or repayment capacity.
Eligible projects include both post-harvest infrastructure and farming assets. Examples include:
- Warehouse
- Cold Storage
- Sorting and Grading Unit
- Packaging Unit
- Logistics Vehicles
- Processing Unit
- Farm Automation
- Custom Hiring Centre
- Precision Agriculture Equipment
- Sensors and IoT
- Smart Farming Systems
- Solar Farm Systems
- Greenhouse
- Hydroponics
- Tissue Culture
- Seed Processing
- Harvest Machinery
- Boom Sprayer
- Purchase of Drones
- Remote Sensing Equipment
- AI Based Agriculture Systems
Purchase of a drone for spraying or precision farming is eligible under the precision agriculture infrastructure category.
Typical features of an AIF loan. Exact terms depend on the bank selected.
Loan amount can be higher than ₹2 crore, but the interest subsidy applies only up to ₹2 crore.
Interest rate depends on bank, CIBIL score, collateral, and project viability.
| Bank | Type | Approx Interest | Notes |
|---|---|---|---|
| State Bank of India | Public | 8% to 10% | AIF eligible |
| Bank of Baroda | Public | 8% to 10% | AIF eligible |
| Canara Bank | Public | 8% to 10% | AIF eligible |
| Indian Bank | Public | 8% to 10% | AIF eligible |
| Punjab National Bank | Public | 8% to 10% | AIF eligible |
| Union Bank | Public | 8% to 10% | AIF eligible |
| HDFC Bank | Private | 9% to 12% | Case basis |
| ICICI Bank | Private | 9% to 12% | Case basis |
| Axis Bank | Private | 9% to 12% | Case basis |
| IndusInd Bank | Private | 9% to 12% | Case basis |
| Regional Rural Bank | RRB | 7% to 10% | Depends on state |
| Cooperative Bank | Coop | Varies | Depends on bank |
| NBFC | NBFC | Higher | Case basis |
| NABARD Linked Banks | Various | Varies | Scheme eligible |
The process may take a few weeks to a few months depending on the bank.
- 1Visit the Official Portal
- 2Register as BeneficiaryCreate your account on the portal
- 3Prepare DPRDetailed Project Report - the most critical document
- 4Collect Required DocumentsAadhaar, PAN, land proof, quotation, and others
- 5Upload Application on PortalSubmit all documents digitally
- 6Select Lending BankChoose the most suitable bank for your project
- 7Bank VerificationBank reviews your application and DPR
- 8Loan ApprovalSanction letter issued by the bank
- 9Loan DisbursementFunds transferred as per agreement
- 10Purchase Equipment and Submit InvoiceBuy the approved equipment and close the process
The bank may ask for additional documents beyond this list.
- Aadhaar
- PAN
- Address Proof
- Land Ownership or Lease Proof
- Bank Statement
- Income Proof
- DPR
- Quotation of Equipment
- GST (if business)
- Partnership Deed (if company)
- FPO Registration (if FPO)
- Cooperative Documents (if society)
- Project Cost Estimate
- Repayment Plan
When applying for a loan for a drone or automation equipment, the bank may ask the supplier for the following documents. These help the bank assess and understand the project.
- Quotation
- Proforma Invoice
- Technical Specification
- Company Profile
- GST Details
- Product Brochure
- Performance Details
- Cost Breakup
- Installation Details
- Training Details (if applicable)
Many applications fail because the DPR is not prepared properly. Avoid these common issues:
- Wrong or weak DPR
- No margin money
- Poor CIBIL score
- No repayment capacity
- Land documentation issues
- Missing documents
- Project not eligible
- Bank not satisfied
- Wrong bank selected
- Overestimated income
- No project experience
Good preparation increases your chances of approval significantly.
- Prepare a proper and realistic DPR
- Use the correct project category when applying
- Choose the right bank based on your project type and scale
- Keep margin money ready before applying
- Provide all required documents, correctly
- Use a real quotation from the equipment supplier
- Show actual, verifiable income and repayment ability
- Avoid overestimating income or project returns
- Take professional help with the DPR if needed
- Apply under the correct scheme category
Tick all items that apply to your situation. Your readiness score will appear below.
0 of 8 items selected
Can a farmer buy a drone under AIF?
What is the maximum loan amount?
Is an interest subsidy given?
Is collateral required?
Can an FPO, contractor, or startup apply?
How long does approval take?
Can a private bank give an AIF loan?
Can I apply without land ownership?
Is a margin contribution required?
- Rules and eligibility criteria may change without notice.
- Interest rates are subject to change based on bank policy and RBI guidelines.
- Bank decisions are final. Approval is not guaranteed.
- Scheme terms may be updated by the Government of India.
- Always verify current information at the official AIF portal: agriinfra.dac.gov.in
- Consult your bank before submitting an application.
