**Summary:**
The Union Cabinet has approved the continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26, maintaining the existing 1.5% interest subvention (IS) rate. This scheme aims to provide short-term credit to farmers at affordable rates through Kisan Credit Cards (KCC). Under MISS, farmers can access loans up to Rs. 3 lakh at a subsidized interest rate of 7%, further reduced to 4% for prompt repayment. For loans specifically for animal husbandry or fisheries, the interest benefit applies to loans up to Rs. 2 lakh. The scheme supports over 7.75 crore KCC accounts nationwide. The continuation of MISS is intended to sustain institutional credit flow to agriculture, enhance productivity, and ensure financial inclusion, particularly for small and marginal farmers. Institutional credit disbursement through KCC has increased significantly, reaching Rs. 10.05 lakh crore by December 2024, and overall agricultural credit flow has also seen substantial growth. The government emphasizes that retaining the 1.5% interest subvention rate is crucial for supporting rural and cooperative banks and ensuring continued access to low-cost credit for farmers, aligning with the government's commitment to doubling farmers' income and strengthening the rural credit ecosystem.
Key Entities Referenced
Ministry of Agriculture Farmers Welfare: The government ministry responsible for agriculture and farmers' welfare.
Cabinet: The Union Cabinet, the executive body of the Indian government.
Modified Interest Subvention Scheme: A central sector scheme designed to provide affordable short-term credit to farmers. Abbreviated as MISS.
MISS: Abbreviation for Modified Interest Subvention Scheme.
FY 202526: The financial year 2025-2026.
1.5 Interest Subvention: The percentage of interest that is subsidized under the MISS scheme. Also referred to as IS.
IS: Abbreviation for Interest Subvention, referring to the 1.5% interest subsidy.
28 MAY 2025: The date the information was posted.
PIB Delhi: Press Information Bureau, Delhi - source of the information.
Union Cabinet: The executive body of the Indian government.
Prime Minister Shri Narendra Modi: The Prime Minister of India who chaired the Union Cabinet meeting.
Central Sector Scheme: A scheme fully funded and implemented by the Central Government.
Kisan Credit card: A credit card scheme for farmers. Abbreviated as KCC.
KCC: Abbreviation for Kisan Credit Card.
Rs.3 lakh: The maximum amount of short-term loans available to farmers through KCC at a subsidized interest rate.
7: The subsidized interest rate (percentage) on short-term loans through KCC.
Prompt Repayment Incentive: An incentive for farmers who repay their loans promptly. Abbreviated as PRI.
PRI: Abbreviation for Prompt Repayment Incentive.
Rs.2 lakh: The maximum loan amount eligible for interest benefit for loans taken exclusively for animal husbandry or fisheries.
7.75 crores: The approximate number of KCC accounts in the country.
Agriculture Credit: Institutional credit disbursement through KCC and Overall agricultural credit flow
Rs.4.26 lakh crore: The amount of institutional credit disbursement through KCC in 2014.
2014: Year of institutional credit disbursement through KCC.
Rs. 10.05 lakh crore: The amount of institutional credit disbursement through KCC by December 2024.
December 2024: Month and Year of institutional credit disbursement through KCC.
Rs.7.3 lakh crore: The amount of overall agricultural credit flow in FY 2013-14.
FY 201314: Financial year 2013-2014.
Rs.25.49 lakh crore: The amount of overall agricultural credit flow in FY 2023-24.
FY 202324: Financial year 2023-2024.
Kisan Rin Portal: A portal launched to enhance transparency and efficiency in claim processing. Abbreviated as KRP.
KRP: Abbreviation for Kisan Rin Portal.
August 2023: Month and Year of Kisan Rin Portal launch.
median MCLR: Median Marginal Cost of Funds based Lending Rate
repo rate: The rate at which the central bank lends money to commercial banks.
MJPSBM: Acronym for the PIB release identifier. (Full form not provided)
Release ID: 2131989: Unique identifier for the press release.
Ministry of Agriculture & Farmers Welfare
Cabinet approves continuation of Modified Interest
Subvention Scheme (MISS) for FY 2025-26 with
existing 1.5% Interest Subvention (IS)
Posted On: 28 MAY 2025 3:13PM by PIB Delhi
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.
*****MJPS/BM
(Release ID: 2131989)