The Union Cabinet has approved the continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26, providing a 1.5% interest subvention to banks for short-term crop loans up to ₹3 lakh issued through Kisan Credit Cards (KCC). This allows farmers to access loans at an effective interest rate of 4% with timely repayment. The scheme aims to provide affordable and flexible credit access, disaster support, and empower small and marginal farmers. Credit flow through KCC has more than doubled between 2014 and 2024, and overall agricultural credit flow has significantly increased. Non-Performing Assets (NPAs) in the agriculture sector have also improved. The government has launched the Kisan Rin Portal (KRP) to digitally track interest subvention claims, enhancing transparency and accountability. The government is also considering enhancing the KCC limit to ₹5 lakh.
Key Entities Referenced
Ministry of Agriculture Farmers Welfare: The government ministry responsible for agriculture and farmers' welfare.
Government: Refers to the governing body.
Interest Subvention Scheme: A scheme to provide interest subvention on agricultural loans.
KCC: Kisan Credit Card, a platform for providing short-term crop loans to farmers.
MISS: Modified Interest Subvention Scheme, aimed at supporting farmers through interest subvention.
PIB Delhi: Press Information Bureau, Delhi - the source of the notification.
Union Cabinet: The cabinet of the central government.
financial year 202526: The financial year for which the continuation of the Modified Interest Subvention Scheme (MISS) has been approved.
Kisan Credit Card: A platform used to provide short-term crop loans up to 3 lakh.
PRI: Prompt Repayment Incentive, a reward for farmers who repay loans on time.
Indian agriculture: Refers to agriculture in India.
NonPerforming Assets: Loans for which the principal or interest payment has remained overdue for a certain period.
NPAs: Abbreviation for Non-Performing Assets.
Kisan Rin Portal: A digital portal launched to track interest subvention claims.
KRP: Abbreviation for Kisan Rin Portal.
Union Budget 2025: The annual financial statement presented to the parliament of India in 2025.
PSFKSRAR: Likely an identifier or code, context not clear from text.
Release ID: 2132139: The identifier of the official press release.
Ministry of Agriculture & Farmers Welfare
Government Strengthens Farmer Support through
Continued Interest Subvention – KCC and MISS
Remain Cornerstone of Agri Credit
Posted On: 28 MAY 2025 6:38PM by PIB Delhi
In a significant decision to support farmers across the country, the Union Cabinet has approved the
continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025–26. Under
this scheme, 1.5% interest subvention will continue to be provided to banks for short-term crop loans up to
₹3 lakh issued through the Kisan Credit Card (KCC) platform.
This decision ensures that farmers will continue to get short-term agricultural loans at an effective
interest rate of just 4%, provided they repay on time and avail the 3% Prompt Repayment Incentive
(PRI).
What This Means for Farmers:
Affordable Loans: Farmers can access working capital at just 4% interest, among the lowest
(cid:108)
rates globally.
Flexible Credit Access: KCC offers revolving credit for up to five years, letting farmers withdraw
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funds as needed.
Disaster Support: In case of natural calamities, interest relief continues for up to one year, and
(cid:108)
up to five years in severe disasters.
Support for Small and Marginal Farmers: With 76% of agri-credit accounts now held by small
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farmers, the scheme continues to empower the backbone of Indian agriculture.
No Collateral Needed: Farmers can avail loans up to ₹2 lakh without collateral.
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Boost in Farming Productivity: Easy credit allows use of better seeds, fertilizers, and tools,
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helping farmers improve yields and incomes.
Credit Growth Reflects Success:
Credit flow through KCC has more than doubled from ₹4.26 lakh crore (2014) to ₹9.81 lakh
(cid:108)
crore (2024).
Overall agricultural credit flow has risen from ₹7.3 lakh crore to ₹25.49 lakh crore during the
(cid:108)
same period.
The share of institutional credit has grown to over 75%, reducing dependence on informal
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moneylenders.
Non-Performing Assets (NPAs) in the agriculture sector improved from 8.9% in 2019 to 7.2% in
(cid:108)
2023, while KCC NPAs declined from 12.66% in 2021–22 to 11.5% in 2023–24, indicating
better credit performance and recovery.
Digital Reform for Transparency – Kisan Rin Portal (KRP):
The government has also launched the Kisan Rin Portal (KRP) to track interest subvention claims digitally.
This portal ensures faster disbursement, greater transparency, and accountability, benefiting both farmers
and banks.
Looking Ahead:
The government remains committed to enhancing the KCC limit to ₹5 lakh, as announced in the Union
Budget 2025. While this proposal is under active consideration, today's Cabinet decision ensures seamlesscontinuation of support to farmers under existing provisions.
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PSF/KSR/AR
(Release ID: 2132139)