Modified Interest Subvention Scheme (MISS), Key Features and Significance

Learn about the Modified Interest Subvention Scheme—its objectives, benefits for farmers, eligibility criteria, and how it supports affordable agricultural credit through interest subsidies.

Context: Cabinet approves continuation of Modified Interest Subvention Scheme (MISS) for FY 2025-26 with existing 1.5% Interest Subvention (IS).

About Modified Interest Subvention Scheme (MISS)

Modified Interest Subvention Scheme (MISS) is a Central Sector Scheme, 100% funded by the Government of India.
Launched: 2006-07
Aim: to provide short-term Agri-loans availed by farmers through Kisan Credit Card (KCC) for their working capital requirements at a concessional rate of interest.

Key Features of MISS

Interest Subvention: 1.5 % subvention on short-term agri loans up to Rs.3 lakh at 7% interest.
Prompt Repayment Incentive (PRI): Timely repayment reduces effective interest to 4%.
Allied Activities Coverage: Loans up to Rs 2 lakh for animal husbandry and fisheries are also eligible.
No Structural Changes: Same scheme structure continued for FY 2025–26.

Significance

Financial Inclusion: Supports over 75 crore KCC holders, ensuring affordable institutional credit to small and marginal farmers.
Rising Agri Credit: KCC credit rose from 4.26 lakh cr (2014) to Rs.10.05 lakh cr (2024); total agri credit reached Rs.25.49 lakh cr in 2023–24.
Digital Reforms: Kisan Rin Portal (2023) enhanced transparency and streamlined subsidy claims.

Fact

The implementing agencies for settling the claims under the Interest Subvention Scheme are the Reserve Bank of India (RBI)/National Bank for Agriculture and Rural Development (NABARD).