Cabinet Extends Affordable Credit Scheme for Farmers Till 2025-26

The Union Cabinet has sanctioned the continued implementation of the Modified Interest Subvention Scheme (MISS) for the fiscal year 2025-26, aiming to provide farmers with affordable short-term credit. The scheme, central in nature, offers interest subsidies via the Kisan Credit Card (KCC) to support agricultural financing.

Under this initiative, farmers can access loans of up to Rs 3 lakh at a reduced interest rate of 7%, with a further 1.5% subvention available for eligible lenders. Additionally, those who repay promptly may benefit from a 3% Prompt Repayment Incentive, effectively lowering their interest to 4%.

No modifications were made to the scheme's framework, which also applies to loans up to Rs 2 lakh for animal husbandry or fisheries. The government emphasizes the continuity of this program as crucial to enhancing credit flow and financial inclusion among small and marginal farmers. Institutional credit via KCC expanded significantly from Rs 4.26 lakh crore in 2014 to Rs 10.05 lakh crore by late 2024.

(With inputs from agencies.)