AIF vs NABARD warehouse loan, which is better for building a godown?

They are not really competing products, they overlap and can even work together, so compare them on what each gives you. A regular NABARD-refinanced warehouse loan is a standard term loan where the bank lends and NABARD provides refinance to the bank, which can help the bank offer the loan but does not by itself give you an interest subvention. The Agriculture Infrastructure Fund adds two specific benefits on top of an eligible term loan, the 3 percent interest subvention up to a ceiling and credit guarantee cover for eligible loans. In many cases your warehouse loan can be structured to be eligible under AIF, so you get the term loan and the AIF benefits together rather than choosing one or the other. Where you should look closely. First, eligibility, AIF has a defined project and borrower list, so confirm your godown qualifies. Second, interest, the 3 percent subvention can make AIF clearly cheaper for the eligible portion. Third, collateral, the credit guarantee under AIF can reduce what you must pledge. Fourth, your bank, some branches process AIF smoothly and others are slower. So the practical question is usually not AIF or NABARD, but whether your warehouse loan can be tagged under AIF to capture the subvention and guarantee. Ask your lending bank to compare both structures on the same project and confirm current terms on the official AIF agriinfra portal. This is general information and not financial advice.