If you want to start a warehouse, godown or agriculture related storage business in the village, then the ‘Agricultural Infrastructure Fund’ (AIF) scheme of the Central Government can be a big opportunity for you. Under this scheme, the government provides facilities like interest subvention and credit guarantee on loans up to ₹2 crore to develop agriculture-related infrastructure. The aim of the government is to create warehouses, cold storage, grading units and logistics networks in rural areas. Come, let us know about this scheme in detail.
**What is the Agricultural Infrastructure Fund?**
The Central Government launched the ‘Agricultural Infrastructure Fund’ (AIF) scheme in 2020. Its objective is to create farming infrastructure in villages, so that farmers can get better facilities to store, process crops and reach the market. The government admits that a lot of crops in the country get wasted due to lack of storage and logistics facilities at the village level. For this reason, projects like warehouse, cold storage unit, grading unit, sorting center and crop chamber are being promoted. According to the official website of the scheme, eligible projects include warehouses, rural warehouses, cold storage, pack houses, silos, grading units and post-harvest infrastructure.
**Key Features of the Scheme**
**Features** | **Description**
Maximum interest subsidy Interest subsidy on loans up to ₹2 crore. 3% per annum
Period of relief up to 7 years
Credit Guarantee up to ₹2 crore
Guarantee Fee payment by government
Duration of the scheme 2020-21 to 2032-33
**How to get interest rebate?**
If any person or organization takes a loan to build a warehouse under the AIF scheme, the government gives an interest subsidy of 3% annually on that loan. For example, if a bank offers a loan at 9% interest, the effective interest rate after government subsidy may come to around 6%. This discount is applicable on loans up to ₹2 crore and is valid for a maximum of 7 years. Loan facility without heavy collateral
Under this scheme, credit guarantee facility is available for loans up to ₹ 2 crore. This facility is provided by CGTMSE and NABSanrakshan, and its fees are borne by the government. This makes it easier for small entrepreneurs and farmers to take bank loans.
Who can apply?
Different individuals and organizations can avail the benefits of this scheme.
Eligible Individuals and Entities
individual farmer
Farmer Producer Organizations (FPOs)
cooperative societies
Agri-Startups
Self Help Groups (SHGs)
agro-industrialist
Panchayats and government agencies
How and where to apply?
To start a warehouse business, first of all a project report has to be prepared. Thereafter, registration is done on the AIF portal and the application is submitted through the bank.
application procedure
Visit the official website of AIF: https://agriinfra.dac.gov.in/
Select “Register as a Beneficiary” option
Upload project report and required documents
Select Bank or Financial Institution
The bank approves the loan after evaluating the project.
What documents are required?
land documents
Aadhaar and PAN card
bank account information
project report
Estimated Cost and Business Plan
passport size photo
Why is the need for warehouses increasing in villages?
Every year, a large amount of grains, fruits and vegetables are wasted in the country due to lack of storage facilities. Farmers are often forced to sell their produce at low prices immediately after harvesting. If warehouse and cold storage facilities are created in villages, farmers can store their produce safely and sell it later at better prices. This can increase the income of farmers and create employment opportunities in rural areas.
