Under the Scheme for Agriculture Infrastructure Fund, the loans upto a limit of Rs. 2 crore will have interest subvention of ______.

The correct answer is 3% per annum.

Key Points

• Under the Scheme for Agriculture Infrastructure Fund, loans up to Rs. 2 crore are eligible for an interest subvention of 3% per annum.
• The interest subvention is provided for a maximum period of 7 years.
• The scheme aims to facilitate the creation of post-harvest infrastructure and community farming assets across the country.
• The Agriculture Infrastructure Fund was launched by the Government of India in 2020 as part of the Atmanirbhar Bharat initiative.
• This scheme is expected to mobilize a medium to long-term debt financing facility of Rs. 1 lakh crore for agriculture infrastructure projects.

Additional Information

• Key Objectives of the Agriculture Infrastructure Fund:
  • To provide improved access to post-harvest management solutions such as cold storage, processing units, and logistics facilities.
  • To reduce wastage of agricultural produce and improve farmers' incomes.
  • To promote entrepreneurship in agriculture by supporting startups and agri-tech companies.
• Eligibility for the Scheme:
  • Eligible beneficiaries include farmers, Primary Agricultural Credit Societies (PACS), Farmer Producer Organizations (FPOs), agri-entrepreneurs, and startups.
  • Individual entrepreneurs and private players can also apply for loans under the scheme.
• Implementation and Monitoring:
  • The scheme is implemented through financial institutions such as banks and NABARD.
  • An online management information system (MIS) platform tracks the progress of the scheme in real time.
• Additional Support:
  • Credit guarantee coverage is available for eligible beneficiaries under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to Rs. 2 crore.
  • No collateral is required for loans under this scheme if covered under CGTMSE.