How to avail loan upto 2 crore without collateral

Government has in recent past introduced many schemes which are aimed to increase the businesses in the country. Agriculture Infrastructure fund or AIF is one of those schemes and in this scheme you can avail loan upto 2 crore without collateral. As the name suggest this scheme is valid for a number of businesses which work around agriculture sector, but don’t worry you don’t necessarily need to be a farmer or agriculture land owner to be eligible for this scheme. In this article we will talk about everything you need to know in simplest language.

How much amount can be availed in AIF scheme

In AIF scheme one can apply for a loan of upto 2 crore and that too without giving any collateral to the bank. Government of India takes the guarantee for the loan and the guarantee fee is also paid by the Government additionally a 3% interest subvention is also given in this scheme. Let me tell you that your project need not to be for only 2 crore but it can be of the higher amount as well but the guarantee and interest subvention will be provided for loan upto 2 crore only.

How much money you have to put from your pocket i.e. margin money

The margin money for this scheme is 10% , that is you will need to invest 20 lakh from your pocket if your total project is of 2 crore.

Who can apply for AIF loan and for which activities

• Agricultural Produce Market Committee
• Agri-Entrepreneur
• Central sponsored Public-Private Partnership Project
• Farmer
• Farmer Producers Organization
• Federation of Farmer Produce Organisations
• Joint Liability Groups
• Local Body sponsored Public-Private Partnership Project
• Marketing Cooperative Society
• Multipurpose Cooperative Society
• National Federations of Cooperatives
• Primary Agricultural Credit Society
• Self Help Group
• Federations of Self Help Groups
• Start-Up
• State Agencies
• State Federations of Cooperatives
• State sponsored Public-Private Partnership Project

beneficiaries include private entities as well as groups
such as FPOs, PACS, SHGs, JLGs, Cooperatives, National and State Level Federation of
Co-operatives, FPOs federations, Federations of SHGs, National and State Level Agencies

A. Post-Harvest Management Projects
 Supply chain services including e-marketing platforms
 Warehouse & Silos
 Cold Stores and Cold Chain
 Packaging Units
 Assaying Units
 Sorting and grading units
 Logistic Facilities- Reefer Van & Insulated vehicles
 Ripening Chambers
 Farm residue/waste management infrastructures
 Primary Processing activities

B. Community Farming Assets
 Organic inputs production – Vermicomposting etc.
 Compressed Biogas ( CBG) Plant
 Bio stimulant production units
 Infrastructure for smart and precision agriculture
 Purchase of drones, putting up specialized sensors on field, Blockchain and AI in
agriculture etc.

 Remote sensing and Internet of Things (IOT) such as automatic weather station, Farm
advisory services through GIS applications.
 Nursery
 Tissue culture
 Seed Processing
 Custom Hiring Center –farm machinery/ implements ( minimum 4 in quantity)
 Farm/Harvest Automation (combine harvestor , sugarcane harvestor, boom sprayers etc. )
 Standalone solar pumping system (PM-KUSUM component B)
 Solarization of grid connected agri-pump under (PM-KUSUM component C)
 Integrated Spirulina production & processing units
 Sericulture processing unit
 Honey processing
 Plant quarantine units
 Projects identified for providing supply chain infrastructure for clusters of crops
including export clusters.
 Projects promoted by Central/State/Local Governments or their agencies under PPP
for building community farming assets or post-harvest management projects.

Following projects are eligible for only groups such as FPOs, PACS, SHGs, JLGs,
Cooperatives, National and State Level Federation of Co-operatives, FPOs federations,
Federations of SHGs, National and State Level Agencies as they qualify as community
farming assets
 Hydroponic Farming
 Mushroom farming
 Vertical farming
 Aeroponic farming
 Poly house/ Greenhouse
 Logistics facilities (including non-refrigerated/insulated vehicles)
 Tractors

–Solarization of any of the eligible infrastructure can also be financed under AIF.
–Digital Connectivity and optic fiber infrastructure shall be eligible investment as part
of development of the aforementioned eligible projects.

For Specific details of activities you can use the following resources

https://agriinfra.dac.gov.in/Content/DocAttachment/FINALSchemeGuidelinesAIF.pdf

How to apply for AIF

First of all lets understand that in this scheme you can avail loan for only capital expenditure, It means for setting up the factory and machineries only. The working capital that means the amount require to purchase the raw material is not included in this scheme. So if you are thinking to set up a factory or any kind of processing unit make sure you have the required margin and working capital to run the business.

Now the first step is to check the eligible projects from one of the projects given in the list, then choose which project will suite you. Second step is to go to a CA and get a project report prepared by him. Third step is to go to the following site https://agriinfra.dac.gov.in/ and go to beneficiary tab and then registration tab.

Here you will provide your Name, Mobile number and AADHAR. Now you will get an OTP. Then you would be logged in and now you will have to put all your details and submit. The authorities will go through your application and if it is found eligible you will be contacted. Below video explains the whole process step by step.

Readers I hope I was able to explain the scheme to you and cleared some of your doubts. If you still have some questions you can ask me in the comments.

You can also click here to know more about the scheme

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