Q. With reference to Agriculture Infrastructure Fund (AIF) consider the following statements:
1.It is a fund created at every Panchayat level to support the tenant farmers in producing cash crops.
2.All loans provided under AIF have interest subvention.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Explanation –

Statement 1 is incorrect. AIF provide a medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.

Statement 2 is correct. All loans under AIF will have interest subvention of 3% per annum up to a limit of Rs. 2 crores. This subvention will be available for a maximum period of seven years.

Source: ForumIAS