I want to build an on-farm warehouse and a small grading unit. I heard there is an interest subvention scheme that makes the loan cheaper.
The Agriculture Infrastructure Fund is a financing facility that gives an interest subvention and a credit guarantee on loans for post-harvest and farm-gate infrastructure, which lowers your borrowing cost rather than handing you a grant. Eligible projects include warehouses, cold storage, grading and sorting units, primary processing, custom hiring centres and similar post-harvest assets, and eligible borrowers range from individual farmers and FPOs to entrepreneurs and cooperatives. You apply for a normal term loan from a participating bank for the project, and once sanctioned under AIF you get an interest subvention of a fixed percentage on the loan up to a ceiling for a number of years, plus the loan can be backed by a credit guarantee that helps you get it without heavy collateral. So your effective interest falls for the subvention period while you still repay the principal. The eligible activities, the subvention percentage, the loan ceiling and the period are set by the scheme, so confirm the current AIF terms with your bank.
Maine apne godown ke liye AIF ke through loan liya, interest par achhi chhoot mili kuch saalon tak. Bank se confirm karwa lena ki tumhara project eligible category me aata hai ya nahi.
Maine apne godown ke liye AIF ke through loan liya, interest par achhi chhoot mili kuch saalon tak. Bank se confirm karwa lena ki tumhara project eligible category me aata hai ya nahi, har activity cover nahi hoti.
The credit guarantee part helped me get the loan without heavy collateral for my grading unit. You still repay the principal, only the interest is subvented for the period. Apply for a normal term loan and ask the bank to sanction it under AIF. Confirm the current terms.
Dhyan rakho ki AIF grant nahi hai, sirf byaj me chhoot hai, isliye loan poora chukana padta hai aur project chalna chahiye. Maine apni warehouse ki rent income se kista bharne ka plan banaya tha, kyunki agar project nahi chala to byaj subvention ka koi fayda nahi. Pehle yeh dekho ki banwane ke baad godown bharega ya nahi, tabhi loan lena.
A practical tip from my grading unit: the subvention is given for a number of years on a loan up to a ceiling, so anything above that ceiling carries the normal rate. I sized my term loan close to the ceiling for the subvented part and kept the project realistic so the bank sanctioned it under AIF without trouble. Get the sanction letter to clearly state it is under AIF, and confirm the current ceiling, percentage and period with your bank.
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