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MISS 2025-26: Cabinet Extends Farm Loan Interest Subvention

30 May 20251 min read
AGRICULTURE & RURALMISS 2025-26:Cabinet ExtendsFarm Loan InterestSubvention30 May 2025safalsetu.com

Why in the news

The Union Cabinet cleared MISS for 2025-26, keeping cheap short-term farm credit flowing through Kisan Credit Cards.

Key facts

ComponentFY 2025-26 detail
Loan and rateUp to ₹3 lakh at 7%
Lender subvention1.5%
Prompt Repayment Incentive3%, so farmers effectively pay 4%
CoverageCrop, animal husbandry and fisheries loans (up to ₹2 lakh)
Calamities2% subvention on restructured loans
ReachOver 7.75 crore KCC accounts
  • The Kisan Rin Portal (2023) enables quicker, transparent claim processing.

About MISS

  • A central sector scheme for concessional short-term crop loans through KCC, started 2006-07.
  • Run by RBI and NABARD via public sector, regional rural, cooperative and private banks; nodal ministry is Agriculture and Farmers’ Welfare.
  • Aims: affordable credit, timely repayment, lower rural indebtedness, support for dairy, animal husbandry and fisheries, and relief in calamities.

Exam angle

  • Effective rate 4%; launched 2006-07; central sector scheme.

Test yourself

1. What is the effective interest rate for farmers who repay promptly under MISS in FY 2025-26?

7% minus the 3% Prompt Repayment Incentive gives 4%.

2. In which year was the Modified Interest Subvention Scheme launched?

MISS was launched in 2006-07.

3. Which portal introduced in 2023 enables faster claim processing under MISS?

The Kisan Rin Portal (KRP) aids transparent claim processing.