The Government of India has approved the continuation of the Modified Interest Subvention Scheme (MISS) for short-term loans availed through the Kisan Credit Card (KCC) for agriculture and allied activities for the financial year 2025-26. The scheme aims to ensure timely and affordable credit to farmers while promoting prompt repayment and financial inclusion.
Under the scheme, short-term crop loans and loans for allied activities such as animal husbandry, dairy, fisheries, and beekeeping up to an overall limit of ₹3 lakh per farmer will be made available at a concessional interest rate of 7% per annum. To facilitate this, interest subvention of 1.50% will be provided to eligible lending institutions, including Public Sector Banks, Private Sector Banks (for rural and semi-urban branches), Small Finance Banks, and computerized Primary Agriculture Cooperative Societies (PACS) ceded with Scheduled Commercial Banks. The interest subvention will be calculated from the date of disbursement or renewal until repayment or due date, subject to a maximum period of one year.
Additionally, farmers who repay their loans promptly will be eligible for a further interest subvention of 3% per annum, effectively reducing the interest rate to 4% per annum for such borrowers. This prompt repayment incentive is available only for repayments made within one year from the date of loan disbursement and will not apply to loans repaid after that period.
The scheme provides interest subvention benefits on an overall annual limit of ₹3 lakh per farmer, with a maximum sub-limit of ₹2 lakh for allied activities. The crop loan component will receive priority for interest subvention, and the residual amount, subject to prescribed caps, will be considered for allied activities. Illustrative examples have been provided to clarify the applicability of limits under different KCC structures.
To discourage distress sale of produce, small and marginal farmers are eligible for interest subvention for up to six months post-harvest against negotiable warehouse receipts issued by WDRA-accredited warehouses. Further, special provisions have been made for farmers affected by natural calamities. In cases of normal calamities, interest subvention is available for the first year on restructured loans, while in severe calamities, the benefit may extend up to three years or the entire loan period, subject to a maximum of five years, along with prompt repayment incentives.
Banks are required to ensure Aadhaar authentication, validate multiple KCC accounts, encourage digital transactions, accurately report crop and beneficiary data on the Kisan Rin Portal (KRP), and submit certified MISS claims in a timely manner. These measures aim to enhance transparency, prevent duplication, and ensure efficient settlement of claims under the scheme for 2025-26.
