Union Cabinet has approved the Modified Interest Subvention Scheme (MISS) for FY 2025–2026

What does MISS stand for?

MISS is a key sector initiative that provides low-interest short-term crop loans to farmers through the Kisan Credit Card (KCC), encouraging prompt repayment.

Introduced In: First launched in 2006–07 to enhance credit access and lessen rural debt levels.

Implementing Agencies: Carried out collaboratively by the Reserve Bank of India (RBI) and NABARD via Public Sector Banks, RRBs, Cooperative Banks, and Private Sector Banks.

Responsible Ministry: Ministry of Agriculture and Welfare for Farmers

Goals of MISS:

Improve credit availability for agriculture and related sectors.

Offer temporary working capital for agriculture, dairy production, livestock management, and aquaculture.

Lower the expense of borrowing for small and marginal farmers.

Stimulate quick repayment with interest rewards.

Provide economic assistance in times of natural disasters.

Main Attributes of MISS (2025–26):

Subsidized Interest Rate:

Farmers can obtain loans of up to ₹3 lakh with a 7% interest rate.

A 1.5% interest subsidy is provided to lending institutions.

A prompt repayment incentive (PRI) of 3% reduces the effective rate to 4%.

Sectoral Scope: Relevant to agricultural loans, livestock farming, and aquaculture (up to ₹2 lakh).

Increase in Loan Limit: According to Budget 2025-26, the proposed limit is set to rise to ₹5 lakh to boost agricultural requirements.

Disaster Assistance: 2% subsidy on modified loans during natural calamities.

Extensive Reach: Encompasses more than 7.75 crore KCC accounts across the country, promoting rural credit accessibility.

Digital Reforms: Kisan Rin Portal (KRP) introduced in 2023 for quick and clear claim handling.