Kozhikode: Under the Central Government’s Agricultural Infrastructure Fund (AIF), ₹1,101 crore is currently available for farmers and agri-entrepreneurs in Kerala. The scheme, which began five years ago, is set to expire in March.

The scheme provides loans without additional charges for agriculture, agriculture-based industries and hi-tech farming projects, with a two-year moratorium period. The maximum interest rate applicable by the 34 banks participating in the scheme is 9%, of which 3% is subsidised by the Central Government. Loans of up to ₹2 crore can be availed under the scheme, which started in 2020, though the first three years saw limited uptake.

Key features of AIF

  • Applications can be submitted online, and banks cannot delay processing for more than 60 days.
  • Loans can be availed from commercial banks to Kerala Bank.
  • Both individuals and non-charitable agricultural organisations are eligible.
  • So far, of 4,168 applications, ₹1,419 crore has been sanctioned. ₹1,101 crore remains available.
  • This loan can be combined with 14 agricultural subsidies provided by the Central Government.
  • The scheme is primarily implemented through the State Agriculture Department.

Loan applicable for:

  • Cultivation of paddy, fruits, vegetables, oilseeds, pulses, sugarcane, cocoa, coffee, cashew, moringa, tea, rubber, medicinal crops, aromatic crops.
  • Modern farming techniques such as vertical farming, hydroponics, aeroponics, polyhouses, greenhouses.
  • Agricultural equipment and machinery, storage centres, processing units and start-ups related to agriculture.

Loan guidelines:

  • Applicant’s CIBIL score will be considered.
  • No landholding requirement.
  • Detailed project reports must be submitted.
  • The AIF team will forward reviewed applications to the respective bank branch.

State team leader D S Bijukumar said the fund aims to mobilise more investment in the agricultural sector and provide loans for post-harvest infrastructure, storage centres, processing units and start-ups.