The study evaluated the soft loan scheme for the development of post-harvest infrastructure for horticultural crops in Punjab and suggested policy measures to provide an effective base for development of various horticultural crops in the state. Two types of post harvest industrial (PHI) units were studied. First one were themselves taking care of post-harvest handling and marketing operations along with the production of horticultural crops, whereas the others were receiving the horticultural crops from a number of farmers in the nearby area. Besides, the data were collected from 39 member farms using PHI facility developed through National Horticultural Board (NHB) loans and 45 non-member farms (not using PHI facility developed with NHB loans) in the year 1998-1999 to assess the impact of various PHI facilities developed through soft loan scheme by different units. Cold storages were the major PHI facility developed in the state for horticultural crops. The overall cold storage capacity generated under soft loan scheme of NHB was 8910 tonnes, which constituted about 1 per cent of the total cold storage capacity available in the state. However, not much of the other PHI facilities could be developed in the state under NHB soft loan scheme. The share of NHB soft loans in the total financial requirements of the projects undertaken by different units in Punjab was ranging between 28 to 50 per cent. Since 1994-95, the developed facility was utilized to the tune of 78 to 84 per cent over different years by Nijjar Agri. Box; 88 per cent by Punjab Agro Industries, 20 per cent by Majha Agri. Co-ooperative and to the full capacity by Rana Chillers, Patiala. The cold storage facility developed through NHB soft loan scheme was utilized by grape and potato growers while the transportation facility was utilized for the transportation of different fruits grown in the area. Due to the PHI facility developed through NHB soft loans, the area under vegetables increased by 57 to 81 per cent on member farms and 44 to 146 for different categories of non-member farms, while the area under fruits remained almost the same over the years in the regions utilising the facility. The cropping intensity also showed increasing trend due to increased area under vegetables. There were little changes in the cropping pattern, except for the area under potato cultivation. Both fruits and vegetables were found to influence the additional employment opportunities on all the farms, yet the influence of vegetables was more as compared to fruits. To overcome the different constraints in development of horticulture in the state, the study suggested further strengthening of the PHI facilities either through increasing their number or by increasing the capacity of the existing facilities. The created PHI facilities need to be utilized to their capacity and farm size should not be the criteria for use of these facilities by the farmers. Regulation of markets and development of efficient market information system can further help in boosting the development of horticultural crops in the state.