Boosting Farm Income: How NAIF Helps Farmers Invest in Infrastructure

Our nation is built on the backs of farmers. Their efforts to guarantee that food is available to the people are unending. In order to support farmers, the government launched the Agriculture Infrastructure Fund initiative. Farmers may increase the value of their product by using this method, which helps them store and sell their food at higher prices, reduce waste, and enhance processing and value addition. Furthermore, they are eligible for discounted loans up to ₹2 crores.

Proceed to study this page in order to have a thorough grasp of different agricultural programs.

What precisely is the Agriculture Infrastructure Fund of India?

Recipients may borrow up to ₹1 lakh crores under a financing mechanism known as the Agriculture Infrastructure Fund program. In order to finance projects like post-harvest management infrastructure and community agricultural assets, this long-term debt financing strategy makes use of credit guarantees.

Additionally benefited by this scheme are farmers, producers organizations, and the Primary Agricultural Credit Society.

Financial institutions would give borrowers loans worth ₹1 lakh crore under this initiative, with an interest rate of 3%. Additionally, under the CGTMSE program, recipients would be covered by credit guarantees for loans up to ₹2 crore.

Objectives of the Agriculture Infrastructure Fund in India

The following objectives are the focus of the Agriculture Infrastructure Fund initiative:

• This initiative will provide long-term loan funding for post-harvest management infrastructure and community farming assets for investment purposes.
• This money will support requirements such as warehouse maintenance, e-marketing locations linked to e-trading platforms, cold storage and chain establishment, and PPP projects for agricultural aggregation by central, state, or local agencies.

Agritech Infrastructure Fund applicants must fulfill a variety of requirements before they can submit an application.

Eligibility Criteria for Agriculture Infrastructure Funding in India

Under the previously indicated plan, the following qualifications must be met:

• Agri-entrepreneurs, farmers, start-ups, FPOs, central or state agencies, PPP projects, the Marketing Cooperative Society, PACS, etc. are some of the organisations that candidates must belong to.
• The eligibility of a borrower for loan will be decided at a conference between lending companies and the National Bank for Agricultural and Rural Development.
• Financial entities must execute a Memorandum of Understanding with NABARD in order to be qualified for funding. Non-banking Financial Companies, National Cooperative Development Corporations, Scheduled Cooperative Banks, Commercial Banks, etc. are some examples of these financial entities.

It is necessary for prospective borrowers to fill out the Agriculture Infrastructure Fund application and attach the necessary documentation.

Documents Required for the Agricultural Infrastructure Fund in India

To implement the aforementioned strategy, the documents indicated below must be submitted.

• The Articles of Association
• A historical financial sheet spanning three years
• Bank statements from the prior year
• The bank’s application for credit
• Firm registration certificate issued by the registrar of firms
• Registration certificate for MSMEs from the district industries center
• Comprehensive project report
• A recent property tax receipt or an electricity bill
• GST invoice
• Proof of identification and address
• KYC documentation.
• documentation of land ownership
• authorization from local authorities
• Declarations of net worth for the individual
• Evidence of the company’s incorporation
• Loan repayment history for current loans
• The company’s ROC search report is

Who in India Is Eligible to Apply for an Agriculture Infrastructure Fund?

To be eligible for this Agriculture Infrastructure Fund program, an individual must fall into one of the aforementioned categories.

• Agri-entrepreneurs
• Projects supported by public-private partnerships were funded by federal, state, or municipal entities.
• Association of Farmers and Producers
• Farmers
• collaborative liability organisations
• Promoting cooperatives organisations
• Multifunctional cooperative groups
• the principal agricultural credit organisation
• self-assistance organization
• Start-ups

To be eligible for this loan, those who fit the above criteria must submit an application.

In India, how can one apply for financing for agriculture infrastructure?

The following are the procedures for registering a beneficiary for the Agriculture Infrastructure Fund program.

Step 1: Navigate to the National Agriculture Infra Financing Facility’s official website and click the registration link located under the beneficiary tab on the main menu.

Step2: Complete the online registration form for the Agriculture Infrastructure Fund Scheme by entering the necessary data, including your name, Aadhaar number, and cellphone number.

Step 3: It involves entering the pin for verification and clicking “Send OTP.” Once they have registered, they may go to the DPR page and access the Agriculture Infrastructure Fund Online application form.

Step 4: To complete the application procedure, candidates can choose their favourite plan and provide their beneficiary ID or email address along with a password.

Step 5: Complete the form by entering the project’s information, including its cost, status, and data about loans. Upload it, then click “Submit” to finish the procedure.

The ministry will review the completed information after receiving this application. Next, in order to have the loan approved, the authority will forward this application to the chosen lender. The lender will determine if the project is viable and will authorise the funding based on that assessment.

With the registered cellphone number, the applicant will receive a status update.

Let us find out which advantages come with using this program.

What Advantages Do Agriculture Infrastructure Funds India Offer?

The recipients of this funding facility can benefit from several advantages. A few of them are covered in the sections that follow.

Advantages for Farmers, PACS, FPOs, and cooperative marketing societies:

• This program seeks to increase farmers’ incomes.
• Improved farmer marketing infrastructure will be made possible with the help of AIF. Sales and the customer base will both increase as a result.
• Farmers will be able to choose which markets to sell in and where to operate.
• Cold storage and contemporary packaging techniques are available to them.

Advantages for agribusiness owners and startups:

• Farmer-entrepreneur partnership will have greater prospects thanks to AIF.
• AI and IoT are two examples of cutting-edge technology that entrepreneurs might use to the agriculture industry to provide innovation.

Advantages for financial aid:

• The four-year payout period for this credit is scheduled. Approximately ₹10,000 crores would be made available in the first phase, and over the next three fiscal years, another ₹30,000 crores will be allocated each.
• When taking out a loan of up to ₹2 crores, qualified borrowers would be covered by the Credit Guarantee Fund Trust for Micro and Small Businesses.
• The loan amount and interest rate granted to private business owners will be set by the National Monitoring Committee.
• For AIF coverage, the Government will be required to pay a charge.
• There will be a six-month to two-year repayment moratorium in place.

Prior to applying, candidates should review these important details regarding the Agriculture Infrastructure Fund. Prior to applying for a loan, they ought to consider the funds required. This will simplify their payment schedule.