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iob_bank_griculture_infrastructure_fund

Last Updated:07/02/2026
Agriculture Infrastructure-Fund
   

Objective

To mobilize a medium - long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and viable farming assets through incentives and financial support to improve agriculture infrastructure in the country.

Nature and
Purpose of
Advance

All post-harvest management projects and viable farming assets.

Click here to check all eligible activities Eligible Projects (dac.gov.in)

Quantum of Loan

Minimum- No minimum

Maximum- No minimum

Eligibility

Farmers, PACS, Marketing Co-operative Societies, FPOs, SHGs, JLGs, Multipurpose Cooperative Societies, Agri Entrepreneurs, Start-ups, Central /State agency, or Local Bodies sponsored PPPs with sufficient knowledge/experience in the activity undertaken.

Security

Nil collateral up to Rs. 2.00 crs: Credit Guarantee coverage will be available for eligible borrowers under CGTMSE scheme for loan up to Rs. 2 crores and fee will be paid by the Government. In case of FPOs, credit guarantee may be availed from the scheme of CGS-FPO.

For all other cases where credit guarantee cover is not available:

Up to Rs. 2.00 Lakhs:  Hypothecation of assets created out of loan. Nil Collateral

Above Rs. 2.00 Lakhs: Loan should be adequately secured by way of immovable property whose value is not less than/ equal to the loan amount.

Margin

Minimum 10% of the project cost

Repayment

Maximum 7 years including holiday period

Holiday Period

Maximum 2 years

Rate of Interest

Internal rating

Benchmark

Strategic Premium

Risk Premium

Total Spread

Effective ROI*

Rating-IOB 1

1 Y MCLR

0.20%

1.10%

1.30%

10.15%

Rating-IOB 2

1 Y MCLR

0.20%

1.20%

1.40%

10.25%

Rating-IOB 3

1 Y MCLR

0.20%

1.40%

1.60%

10.45%

Rating-IOB 4

1 Y MCLR

0.20%

1.60%

1.80%

10.65%

Rating-IOB 5

1 Y MCLR

0.20%

2.00%

2.20%

11.05%

Rating-IOB 6 and above

1 Y MCLR

0.20%

2.25%

2.45%

11.30%

*1Y MCLR - 8.85% at present

Externally rated accounts:

Externally rated accounts

Benchmark

Strategic Premium

Risk Premium

Total Spread

Effective ROI*

AAA

1 Y MCLR

0.20%

0.70%

0.90%

9.70%

AA

1 Y MCLR

0.20%

0.80%

1.00%

9.85%

A

1 Y MCLR

0.20%

1.10%

1.30%

10.15%

BBB

1 Y MCLR

0.20%

1.25%

1.45%

10.30%

 

Interest Subvention

Loans under this financing facility will have interest subvention of 3 % per annum up to a limit of Rs.2 crores for a maximum period of 7 years.

In case of loans beyond Rs. 2 Crores, interest subvention will be limited up to Rs. 2 crores.  Subvention will be allowed only till the accounts is under Standard category.

Processing Charges

Up to Rs. 50,000/- - Nil

Above Rs. 50,000/- up to Rs. 3 Lakhs - 0.30% of the loan amount

Above Rs. 3 Lakhs - 0.71% of the loan amount

Conditions apply

*For more details, please contact our nearest branch

*Click here to register agriinfra.dac.gov.in/Home/BeneficiaryRegistration

* Click here to apply after registering User/Beneficiary Login (dac.gov.in)