Prashnavachak News
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26. The scheme aims to provide affordable short-term credit to farmers through the Kisan Credit Card (KCC) system by offering an interest subvention of 1.5% to eligible lending institutions. Under this scheme, farmers can avail short-term loans of up to 3 lakh at a subsidized interest rate of 7%. Those who repay their loans promptly receive a Prompt Repayment Incentive (PRI) of up to 3%, effectively reducing their interest rate to 4%. For loans taken for activities such as animal husbandry and fisheries, the benefit applies up to 2 lakh. Currently, there are over 7.75 crore KCC accounts across India. The continuation of this scheme is crucial for maintaining the flow of low-cost institutional credit to the agricultural sector, particularly for small and marginal farmers. No changes have been made to the structure or components of the scheme. Agricultural credit distribution has seen remarkable growth in recent years. Disbursement through KCC has increased from ₹4.26 lakh crore in 2014 to ₹10.05 lakh crore by December 2024. Overall agricultural credit flow has surged from *7.3 lakh crore in FY 2013-14 to ₹25.49 lakh crore in FY 2023-24. The introduction of digital initiatives like the Kisan Rin Portal (KRP) in August 2023 has enhanced transparency and efficiency in processing claims and monitoring loan benefits. This decision reaffirms the government’s strong commitment to doubling farmers’ income, improving agricultural productivity, and strengthening the rural credit ecosystem by ensuring continued access to affordable and timely credit for India’s farming community.
