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

Published By : Admin | May 28, 2025 | 15:45 IST

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today approved the continuation of the Interest Subvention (IS) component under the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26, and approved required fund arrangements.

MISS is a Central Sector Scheme aimed at ensuring the availability of short-term credit to farmers at an affordable interest rate through Kisan Credit card (KCC). Under the Scheme:

  • Farmers received short-term loans of up to Rs.3 lakh through Kisan Credit Cards (KCC) at a subsidized interest rate of 7%, with 1.5% interest subvention provided to eligible lending institutions.

 

  • Additionally, farmers repaying loans promptly are eligible for an incentive of up to 3% as Prompt Repayment Incentive (PRI) effectively reducing their interest rate on KCC loans to 4%.

 

  • For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to Rs.2 lakh.

 

No changes have been proposed in the structure or other components of the scheme.

There are more than 7.75 crores of KCC accounts in the country. The continuation of this support is critical to sustaining the flow of institutional credit to agriculture, which is vital for enhancing productivity and ensuring financial inclusion for small and marginal farmers.

Key highlights of Agriculture Credit:

  • Institutional credit disbursement through KCC increased from Rs.4.26 lakh crore in 2014 to Rs. 10.05 lakh crore by December 2024.

 

  • Overall agricultural credit flow also rose from Rs.7.3 lakh crore in FY 2013-14 to Rs.25.49 lakh crore in FY 2023-24.

 

  • Digital reforms such as the launch of the Kisan Rin Portal (KRP) in August 2023 have enhanced transparency and efficiency in claim processing.

 

Given the current lending cost trends, median MCLR and repo rate movements, retaining the interest subvention rate at 1.5% remains essential to support rural and cooperative banks and ensure continued access to low-cost credit for farmers.

The Cabinet’s decision reinforces the Government’s unwavering commitment to doubling farmers’ income, strengthening the rural credit ecosystem, and boosting agricultural growth through timely and affordable credit access.

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Prime Minister Shri Narendra Modi today stated that over the last 12 years, the Government has worked to further women-led development, which is visible across sectors. He noted that from financial inclusion and entrepreneurship to education, healthcare, sanitation, housing, sports, science, and governance, women are playing a prominent role across diverse fields.

Shri Modi emphasized that the efforts of the Government are rooted in dignity, opportunity, and empowerment, pointing out that they have helped create an environment where women can realise their full potential and contribute even more strongly to nation-building.

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Sharing a Sanskrit Subhashitam, the Prime Minister stated that India's Nari Shakti is the cornerstone of nation-building. He observed that today, our mothers, sisters, and daughters are increasing the pride of Maa Bharati with their amazing talent and skills in every field.

In a series of posts on X, the Prime Minister shared:

"Over the last 12 years, the NDA Government has worked to further women-led development. And, this is visible across sectors.
From financial inclusion and entrepreneurship to education, healthcare, sanitation, housing, sports, science and governance, women are playing a prominent role across diverse sectors.

The efforts of the NDA Government are rooted in dignity, opportunity and empowerment. They have helped create an environment where women can realise their full potential and contribute even more strongly to nation-building.

#12YearsOfNariShakti “

“ I am particularly happy to see India’s Nari Shakti make a mark in sectors like science, space and innovation. Their growing participation in emerging fields such as drone technology is opening new avenues of opportunity and transforming development landscape across the nation. Our Government is actively supporting Self Help Groups, which are going a long way in making women financially independent.

#12YearsOfNariShakti “ 

“ भारत की नारीशक्ति राष्ट्र निर्माण की आधारशिला है। हमारी माताएं, बहनें और बेटियां आज हर क्षेत्र में अपनी अद्भुत प्रतिभा और कौशल से मां भारती का गौरव बढ़ा रही हैं।

नारी त्रैलोक्यजननी
नारी त्रैलोक्यरूपिणी।
नारी त्रिभुवनाधारा
नारी शक्तिस्वरूपिणी॥

#12YearsOfNariShakti"

Woman is the mother of the three worlds. She is the very expression of all the three realms. She is the foundation of the entire universe, and she is the true embodiment of power.