Government approves continuation of interest subvention scheme for farmers

Government approves continuation of Modified Interest Subvention Scheme (MISS) for farmers, providing affordable credit through Kisan Credit Card (KCC).

The Government on Wednesday (May 28, 2025) approved the continuation of the Modified Interest Subvention Scheme (MISS) for 2025-26 under which farmers get short-term credit at an affordable rate through Kisan Credit Card (KCC).

The decision regarding the continuation of MISS for fiscal year 2025-26 with the existing 1.5% interest subvention was taken by the Union Cabinet, informed Information and Broadcasting Minister Ashwini Vaishnaw.

The continuation of the scheme will cost the exchequer ₹15,640 crore.

MISS is a Central Sector Scheme aimed at ensuring the availability of short-term credit to farmers at an affordable interest rate through KCC.

Under MISS, farmers get short-term loans of up to ₹3 lakh through KCC at a subsidised interest rate of 7%, with 1.5% interest subvention provided to eligible lending institutions.

Additionally, farmers repaying loans promptly are eligible for an incentive of up to 3% as a Prompt Repayment Incentive (PRI), effectively reducing their interest rate on KCC loans to 4%.

For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to ₹2 lakh.