Page 45 - Banking Finance February 2022

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available in collaboration with participating lending VI. Once the loan is sanctioned then funds will be
institutions to provide information and loan sanctioning transferred directly to the bank account of the
facility. Agri Infra fund will be managed and monitored beneficiary.
through an online MIS platform. It will enable all the qualified VII. After the disbursal of loan to beneficiary by lending
entities to apply for loan under the fund.
institute, interest subvention and credit guarantee fee
will be released by GOI to the lending institute and
The system will also provide benefits such as transparency CGTMSE respectively.
of interest rates offered by multiple banks, scheme details
including interest subvention and credit guarantee offered,
minimum documentation, faster approval process as also Conclusion:
integration with other scheme benefits.Loan can be availed This scheme will make farmers independent and improve
through offline mode, but it is mandatory for lending access to market. With modern packaging and cold storage
institutions to make its entry on the online platform in due system access, farmers will be able to further decide when
course of time to get the benefits of AIF. to sell in the market and improve realization.

Rate of interest: Infrastructure at the farm gate is created through this
scheme. It is providing a medium - long term debt financing
The cap on lending rate of up to Rs 2.00 Cr. (Rupees two
facility for investment in viable projects for post-harvest
crore) will be 06 monthly/ Annual MCLR plus 100 basis point management Infrastructure and community farming assets
(floating) subject to maximum 9.00 percent (Nine percent through interest subvention and financial support for credit
per annum) for all eligible projects. guarantee.

Convergence: With extension of eligibility to State Agencies/APMCs,
Any grant or subsidy available under any present or future National & State Federations of Cooperatives, Federations
scheme of Central/State government can be availed for of Farmers Producers Organizations (FPOs), and Federations
projects under this financing facility. In cases of capital of Self-Help Groups (SHGs) not only will the APMC be
subsidy such amount shall be considered as promoter's empowered but it will increase employment opportunities
contribution. However, a minimum of 10% of the project cost and more and more people will be benefited. APMC markets
shall be mandatory as promoter's contribution. are set up to provide market linkages and create an
ecosystem of post-harvest public infrastructure open to all
Process flow of the scheme: farmers.
I. The applicant will register on the online portal
This scheme will help to achieve a multiplier effect in
(www.agriinfra.dac.gov.in) after which he/ she will
generating investments. The benefits reach small and
receive registration credentials
marginal farmers also.It is generating new employment
II. After getting credentials, beneficiary can apply for loan opportunities and strengthen the rural economy. There is
through the online portal by filling an application form huge opportunity to finance under agriculture infrastructure
available on the portal. fund scheme which will accelerate creation of many
III. Along with the application soft copy of Detailed Project infrastructure projects such as cold storage, collection
Report (DPR) and related documents will be uploaded centres, processing units so that the hardworking farmers
on the portal by applicant. can get the true value for their produce.
IV. This application along with DPR will then be forwarded
to the lending institution opted by the applicant for References:
appraisal. i) www.agriinfra.dac.gov.in
V. The lending institute will appraise the project and ii) RBI website
decide whether to sanction the loan or reject the iii) www.indiatoday.in
application based on viability of project. iv) Wikipedia.

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