Agriculture Infrastructure Fund (Launched under Aatma Nirbhar Bharat Package)

✅Agriculture Infrastructure Fund is a Central Sector Scheme which shall provide medium to long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support. 

✅Under the scheme, Rs. One Lakh Crore will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agrientrepreneurs, Start-ups, Aggregation Infrastructure Providers and Central/State agency or Local Body sponsored Public Private Partnership Projects. 

✅For all the loans under this financing facility, Government will provide interest subvention of 3% per annum for loans up to Rs. 2 crore and the subvention will be available for a maximum period of seven years.  

✅ Further, credit guarantee coverage will be available to borrowers from this financing/fund facility under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore and the fee for this coverage will be paid by the Government. 

✅The total budgetary support from Govt. of India against subvention and guarantee will  

be Rs. 10,736 crores. 

✅ The scheme by way of facilitating formal credit to farm and farm processing-based  

activities is expected to create numerous job opportunities in rural areas. The duration  

of the Scheme shall be from FY2020 to FY2029 (10 years).

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