Modified Interest Subvention Scheme (MISS)

The Union Cabinet on May 28 approved the continuation of the Interest Subvention (IS) component under the Modified Interest Subvention Scheme (MISS).

• Financial Year: The continuation is approved for the financial year 2025-26.
• Funding: The cabinet also approved the necessary fund arrangements for the scheme’s continuation.
• Scheme Type: MISS is a Central Sector Scheme.
• Objective: To ensure the availability of short-term credit to farmers at an affordable interest rate.
• Instrument: This is facilitated through the Kisan Credit Card (KCC).
• Loan Limit: Farmers can receive short-term loans up to ₹3 lakh through KCC.
• Subsidized Interest Rate: The interest rate for these loans is 7%.
• Interest Subvention: Eligible lending institutions receive a 1.5% interest subvention.
• Prompt Repayment Incentive (PRI): Farmers repaying loans promptly are eligible for an incentive of up to 3%.
• Effective Interest Rate: The PRI can effectively reduce the interest rate on KCC loans to 4% for prompt repayers.
• Animal Husbandry and Fisheries: For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to ₹2 lakh.

(Source: PIB)