Does an AIF loan come with a moratorium and what repayment tenure can I expect?

The Agriculture Infrastructure Fund is designed as a medium to long term loan precisely because infrastructure takes time to build and then to start generating income, so the scheme provides for a moratorium and a longer repayment tenure. A moratorium is an initial period during which you do not pay principal, giving your project time to come up and start earning before full repayment begins, and the scheme commonly allows a moratorium of a few months up to a couple of years depending on the project and the bank. The overall repayment tenure is typically several years, set so that your EMIs match the cash flow the asset generates rather than crushing you in the early phase. The exact moratorium length and tenure are decided by your lending bank within the scheme framework, based on your project type and projected cash flow, so a cold store and a custom hiring centre may get different terms. A few practical points. First, the 3 percent interest subvention runs for a fixed number of years from drawdown, so understand how the subvention window lines up with your moratorium and repayment. Second, even during a principal moratorium, interest may still accrue, clarify whether you pay interest during the moratorium or it is added on. Third, match your repayment plan to realistic, not optimistic, income, because the early years are when projects struggle. Ask your lending bank for the specific moratorium and tenure they will offer on your project, and confirm current scheme terms on the official AIF agriinfra portal. This is general information and not financial advice.