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Economy and Finance

Economy and Finance

National Agriculture Infra Financing Facility (AIF)

15 Jan 2024 Zinkpot 187
  1. The National Agriculture Infra Financing Facility (AIF) is a scheme that provides a financing facility for funding agriculture infrastructure projects at farm-gate and aggregation points to agri-entrepreneurs, farmers, and other such beneficiaries. 
  2. It offers several features to support the development of agriculture infrastructure and promote agricultural growth. Some of the key features include:
    • Convergence with government schemes: The AIF is designed to converge with all schemes of the central or state government, streamlining the financing process and ensuring that beneficiaries can access multiple sources of funding.
    • Online single window facility: The AIF provides an online single window facility in collaboration with participating lending institutions, making it easier for beneficiaries to apply for loans and access various resources and support.
    • Interest subvention: The scheme offers an interest subvention of 3% per annum up to a limit of ₹2 crore for all loans under this financing facility, helping to reduce the cost of borrowing for agriculture infrastructure projects.
    • Credit guarantee: The AIF provides a credit guarantee for loans up to ₹2 crore under the Credit Guarantee Scheme for Term Loans (CGTMSE) scheme, ensuring that lending institutions have a safety net in case of default.
    • Eligible projects: The AIF covers a wide range of agriculture infrastructure projects, including but not limited to, warehouses, assaying units, sorting and grading units, cold storage, pack-houses, collection centers, ripening chambers, and logistics facilities.
    • Multiple lending institutions: The AIF is available through various lending institutions, including commercial banks, cooperative banks, RRBs, small finance banks, NCDC, NBFCs, and others, ensuring that beneficiaries have access to diverse funding options.
    • Offline mode application: Although the AIF primarily offers an online application process, it is also possible to apply for the loan through offline mode. However, it is mandatory for lending institutions to make the necessary arrangements for offline applications.
    • Project management and handholding support: The AIF provides project management and handholding support for projects, including project preparation, ensuring that beneficiaries receive the necessary guidance and resources to successfully implement their projects.
  3. The Department of Agriculture & Farmers Welfare manages the content related to the scheme on its website, and the scheme also provides various resources and support for the beneficiaries, including project management and handholding support.
     

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