Extension of Modified Interest Subvention Scheme | 31 May 2025

Source: PIB 

The Union Cabinet has approved the continuation of the Modified Interest Subvention Scheme (MISS) for FY 2025–26. 

• Under this scheme, 1.5% interest subvention will continue to be provided to banks for short-term crop loans up to Rs 3 lakh issued through the Kisan Credit Card (KCC) platform. 

Modified Interest Subvention Scheme (MISS)  

• About: Launched in 2006–07 as Interest Subvention Scheme. 
  • MISS is a Central Sector Scheme under the Ministry of Agriculture and Farmers’ Welfare (MoA&FW).  
  • It provides concessional short-term credit for agriculture and allied activities via KCC.  
  • While loans are sanctioned at 7% interest, a 3% Prompt Repayment Incentive (PRI), given for prompt and timely repayment of loans reduces the effective rate to 4%, making credit more affordable. 
• Implementation: Jointly implemented and monitored by RBI and NABARD with Public Sector Banks, RRBs, Cooperative Banks and Private Sector Banks. 
• Key Features: 
  • Revolving credit facility under KCC for up to 5 years with flexible withdrawals. 
  • Collateral-free loans up to Rs 2 lakh. 
  • Interest relief up to 1 year during natural calamities, extendable to 5 years for severe disasters. 
  • Targets small and marginal farmers, who account for 76% of agri-credit accounts. 
  • The government launched the Kisan Rin Portal (KRP) to digitally track interest subvention claims. 
• Kisan Rin Portal (KRP) 
  • Launched in 2023 collaboratively by MoA&FW, Ministry of Finance, RBI, and NABARD. 
  • KRP aims to track interest subvention claims digitally, ensuring faster disbursement, greater transparency, and accountability, benefiting both farmers and banks.