Government Continues Support for Affordable Farmer Loans Under MISS
The Union Cabinet has approved the continuation of the Modified Interest Subvention Scheme (MISS) for 2025-26, providing farmers with short-term credit at reduced interest rates via Kisan Credit Card (KCC). The scheme enables farmers to access loans at a subsidized interest rate, promoting agricultural productivity and financial inclusion.
- Country:
- India
The Indian government has decided to extend the Modified Interest Subvention Scheme (MISS) for the fiscal year 2025-26, aiming to secure affordable credit for farmers through Kisan Credit Cards (KCC). Announced by Information and Broadcasting Minister Ashwini Vaishnaw, the scheme will continue with a 1.5 percent interest subvention rate.
This decision, backed by a financial commitment of Rs 15,640 crore, underscores the importance of maintaining a steady institutional credit flow to agriculture. Under MISS, farmers can access short-term loans of up to Rs 3 lakh at a subsidized interest rate, enhanced by additional incentives for prompt repayment, effectively lowering interest rates to 4 percent.
The scheme's continuation reflects the government's dedication to supporting the agrarian economy by ensuring financial inclusion and agricultural growth, with overall credit flow to agriculture rising significantly over the past decade.
(With inputs from agencies.)
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