Financing growth & transforming rural India.

Bank of Baroda, for rural India, with rural India.

Scheme for Financing under Agriculture Infrastructure Fund

  • Benefits
  • Features
  • Eligibility Criteria
  • Document Required
  • Fees And Charges
  • Most Important Terms and Conditions (MITC)

Scheme for Financing under Agriculture Infrastructure Fund : Benefits

  • Interest Subvention of 3% for Loans up to limit of Rs 2 crore is available for a period of 7 years
  • Credit Guarantee coverage will be available for eligible borrowers under credit guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme for loan upto Rs 2 crore.
  • Rate of Interest is linked with MCLR and Credit Rating
  • As per Govt. directives, the Scheme will be operational from 2020-21 to 2029-30

Scheme for Financing under Agriculture Infrastructure Fund : Features

  • Financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through incentives and financial support in order to improve agriculture infrastructure
  • The AIF scheme will be operational from 2020-21 to 2029-30.

Scheme for Financing under Agriculture Infrastructure Fund : Eligibility Criteria

Eligible Projects:

Post-Harvest Management Projects

  • Supply Chain Services including e-marketing platform
  • Warehouses
  • Silos
  • Pack houses
  • Assaying Units
  • Sorting & Grading Units
  • Cold Chains
  • Logistics facilities
  • Primary processing centers
  • Ripening Chambers
  • Primary Processing of Cashew

Viable projects for building community farming assets

  • Organic inputs production Units
  • Bio stimulant production units
  • Infrastructure for smart and precision Agriculture
  • Projects identified for providing supply chain infrastructure for clusters of crops including export clusters.
  • Projects promoted by Central/State/Local Governments or their agencies under PPP for building community farming assets or post harvesting management projects.

Eligible beneficiaries

  • Primary Agricultural Credit Societies (PACS)
  • Marketing Cooperative Societies
  • Joint Liability Groups (JLG)
  • Farmer Producer Organisations (FPOs)
  • Self Help Groups (SHG)
  • Multipurpose Cooperative Societies
  • Agri-entrepreneurs
  • Start-ups
  • Aggregation Infrastructure Providers.
  • Central/State agency or Local Body sponsored PPP Projects

Scheme for Financing under Agriculture Infrastructure Fund : Document Required

  • KYC Documents (AADHAR, Voter ID, PAN Card, Driving License etc.)
  • Passport Size photo
  • Land Record
  • Quotation/Invoice (if available)
  • Project Report (if available)
  • IT Returns (if available)

Scheme for Financing under Agriculture Infrastructure Fund : Fees And Charges

Processing Charges:
  • Nil Processing charges for aggregate loans upto Rs 3.00 Lakhs.
  • Above Rs 3 Lakhs – 1% of the limit sanctioned with a maximum of Rs 100 lakhs

Inspection Charges:
  • Nil Inspection Charges for aggregate loan upto Rs 3.00 Lakhs
  • Above Rs 3 lakhs to Rs 10 Lakhs - Rs 250/-
  • Above Rs 10 Lakhs to Rs 1 Crore - Rs 1000/-
  • Above Rs 1 Crore - Rs 5000/-

Scheme for Financing under Agriculture Infrastructure Fund : Most Important Terms and Conditions (MITC)

Nature of Facility Term Loan
Repayment Period Term loan to be repaid in 3 to 15 years (including the moratorium period of minimum of 6 months and maximum of 2 years).
  • For Loan up to Rs. 2 crore, Credit Guarantee coverage under CGTMSE is available to eligible borrowers
  • Hypothecation of movable structures/equipment/machinery purchased or created out of Banks finance
  • Mortgage of fixed assets land & buildings
  • Personal guarantee of Proprietors/Partners/Promoters/ Directors etc.
  • Any other security acceptable to the Bank
Margin A minimum of 10% of the project cost needed as promoter's contribution
Rate of Interest For Limits up to Rs 2.00 crores: One Year MCLR plus 100 basis point (floating) subject to maximum of 9.00% for all Agricultural Infrastructure projects

For limit Above Rs 2.00 Crores:

Internal Credit Rating Immovable Property Security Coverage
Above 100% Above 75-100% Above 50-75% Below 50%
Cr-1 to CR-3 MCLR + SP+0.30% MCLR + SP+0.40% MCLR + SP0.65% MCLR + SP+0.90%
CR-4 to CR-6 MCLR + SP+0.65% MCLR + SP+0.90% MCLR + SP+1.15% MCLR + SP+1.40%

Frequently Asked Questions (FAQs)

  • What is Agriculture Infrastructure Fund?

    An agriculture infrastructure fund is a financing facility for post-harvesting activities, managing its infrastructure and keeping community farming assets.

  • How can I apply for the Agriculture Infrastructure Fund?

    You can apply online by clicking on ‘Apply Now’ button on the top of this page or visit the nearest branch of Bank of Baroda.

  • How does the National Agriculture Infra Financing Facility benefit farmers?

    All loans up to a limit of ₹ 2 crores under this financing facility will have interest subvention of 3% per annum. This subvention will be available for a maximum period of 7 years. In case of loans beyond Rs. 2 crores, the interest subvention will be limited up to Rs. 2 crores.

    There is credit guarantee coverage, which is up to Rs. 2 crores. The fee for this coverage will be reimbursed by the Govt. of India.

  • What kind of infrastructure projects are eligible for funding under the Agriculture Infrastructure Fund Scheme?

    Following activities are eligible under National Agriculture Infra Financing Facility:

    • All Post-harvest management projects
    • Primary processing activities
    • Community farming assets like tissue culture
    • Organic inputs production – Vermicomposting etc.,
    • Financing hydroponic farming
    • Mushroom farming
    • Vertical farming
    • Aeroponic farming
    • Poly house/ Greenhouse
    • Logistics facilities
    • Tractors for groups like FPOs, PACS, SHGs, JLGs, Cooperatives, National and State Level Federation of Co-operatives, FPOs federations, Federations of SHGs, National and State Level Agencies as they qualify as community farming assets.

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