Extension of Modified Interest Subvention Scheme | 31 May 2025
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)
Read More: Agriculture Development in India, Agricultural Initiatives and their Implementation |