Short-term credit scheme for farmers to continue

 

THE Government on Wednesday approved continuation of Modified Interest Subvention Scheme (MISS) for 2025-26 under which farmers get short-term credit at affordable rate through Kisan Credit card (KCC). The decision regarding continuation of MISS for fiscal year 2025-26 with existing 1.5 per cent interest subvention was taken by the Union Cabinet, informed Information and Broadcasting Minister Ashwini Vaishnaw.

 

The continuation of the scheme will cost exchequer Rs 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 Rs 3 lakh through KCC at a subsidized interest rate of 7 per cent, with 1.5 per cent interest subvention provided to eligible lending institutions.

 

Additionally, farmers repaying loans promptly are eligible for an incentive of up to 3 per cent as Prompt Repayment Incentive (PRI), effectively reducing their interest rate on KCC loans to 4 per cent. For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to Rs 2 lakh.An official release said that no changes have been proposed in the structure or other components of the scheme.