The Government of India has extended the Modified Interest Subvention Scheme (MISS) for short-term loans for agriculture and allied activities, availed through the Kisan Credit Card (KCC) for the financial year 2024-25. This decision, initially conveyed in a circular dated November 23, 2022, confirms the continuation of the scheme to support farmers with concessional interest rates on loans.
Under the 2024-25 scheme, farmers can access short-term crop loans and loans for allied activities like animal husbandry, dairy, fisheries, and beekeeping up to ₹3 lakh through KCC at a concessional interest rate. Interest subvention will be provided to lending institutions, including Public Sector Banks (PSBs), Private Sector Banks (rural and semi-urban branches), Small Finance Banks (SFBs), and computerized Primary Agriculture Cooperative Societies (PACS) ceded with Scheduled Commercial Banks (SCBs). The subvention will be calculated from the loan disbursement date to the actual repayment date or the loan’s due date, whichever is earlier, up to a maximum of one year. For 2024-25, the lending rate to farmers is set at 7%, with a 1.50% interest subvention for lending institutions.
Additionally, an extra 3% interest subvention will be given to farmers who repay their loans on time, effectively reducing the interest rate to 4% per annum. This benefit is limited to loans repaid within one year of disbursement. Interest subvention and prompt repayment incentive benefits are capped at ₹3 lakh per annum, with a maximum sub-limit of ₹2 lakh for allied activities.
To discourage distress sales and encourage storage, small and marginal farmers can avail interest subvention for up to six months post-harvest against negotiable warehouse receipts, provided the produce is stored in Warehousing Development Regulatory Authority (WDRA) accredited warehouses. For farmers affected by natural calamities, the interest subvention rate for the year will apply to restructured loans for the first year, after which normal interest rates will resume.
In cases of severe natural calamities, the interest subvention can extend for up to five years, based on recommendations from a High-Level Committee (HLC) and other relevant bodies. Farmers affected by such calamities will also receive a prompt repayment incentive of 3% per annum.
Aadhar linkage remains mandatory for availing these loans in 2024-25. Banks are instructed to capture granular data of individual farmer beneficiaries and report it on the Kisan Rin Portal (KRP) to settle audited MISS claims for 2024-25 by June 30, 2025. Separate claims for computerized PACS ceded with SCBs must be uploaded with certification from the banks’ Statutory Auditors confirming no refinance from NABARD.
This continuation of the MISS ensures that farmers receive much-needed financial support, helping to stabilize their incomes and encourage timely loan repayments.
