Date: 2026-01-13Category: Not ApplicableState: Union GovernmentCountry: India
Modified Interest Subvention Scheme for Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC) during the financial year 2025-26
**Executive Summary**
This RBI circular, dated January 13, 2026, addresses the continuation of the Modified Interest Subvention Scheme (MISS) for short-term loans for agriculture and allied activities availed through Kisan Credit Card (KCC) for the financial year 2025-26. It outlines the stipulations approved by the Government of India regarding interest subvention and prompt repayment incentives. Banks are required to adhere to the outlined guidelines and reporting requirements for the 2025-26 financial year.
**Key Points / Main Content**
* **Continuation of MISS:** The Government of India has approved the continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26.
* **Interest Subvention for Short Term Loans:**
* Short-term crop loans and loans for allied activities (animal husbandry, dairy, fisheries, beekeeping, etc.) up to ₹3 lakh are eligible for interest subvention through KCC at a concessional interest rate during 2025-26.
* This applies to Public Sector Banks (PSBs), Private Sector Banks (for rural and semi-urban branches only), and Small Finance Banks (SFBs).
* The lending rate to farmers will be 7%.
* The rate of interest subvention to Lending Institutions will be 1.50%.
* **Additional Interest Subvention for Prompt Repayment:**
* An additional 3% interest subvention is provided to farmers repaying on time.
* This effectively reduces the interest rate to 4% per annum.
* This benefit is not applicable to farmers repaying agricultural loans after one year of availing such loans.
* **Interest Subvention and Prompt Repayment Incentive Limits:**
* The benefits on short-term loans for crop and allied activities are available up to an overall limit of ₹3 lakh per annum.
* A sub-limit of ₹2 lakh applies to farmers involved only in animal husbandry, dairy, fisheries, beekeeping, etc.
* The crop loan component takes priority for these benefits.
* **Support for Distress Sale:**
* To discourage distress sales, interest subvention for small and marginal farmers is available for up to six months post-harvest on produce stored in accredited warehouses against negotiable warehouse receipts.
* **Relief for Natural Calamities:**
* For farmers affected by natural calamities, the applicable interest subvention rate for that year will be extended to the first year of restructured loan amounts. Restructured loans will attract normal rates of interest from the second year onwards.
* For severe natural calamities, the applicable interest subvention rate for that year will be made available to banks for first three years/entire period (subject to a maximum of five years) on the restructured loan amount along with prompt repayment incentive @3% per annum.
* **Stipulations for Banks:**
* **Aadhaar Authentication:** Aadhaar seeding and authentication are mandatory for availing scheme benefits. Lending institutions must ensure e-KYC completion for every farmer.
* **Validation of Multiple Accounts:** Farmers can receive MISS benefits through multiple KCCs, with an overall limit of ₹3 lakh. However, they can only receive MISS benefits for a specific land parcel through one KCC account.
* **Digital Transactions:** Banks are encouraged to promote digital banking channels, including RuPay cards.
* **Data Reporting:** Banks must capture and report granular data of individual farmer beneficiaries, including their social category, accurately on the KRP. This data should be reported accurately to facilitate the settlement of audited MISS claims for the year 2025–26.
* **Accurate Crop Reporting:** Field functionaries must accurately report crop data on the KRP.
* **MISS Claims Submission:** Financial institutions must follow operational instructions and ensure timely uploading of MISS claims on KRP, duly certified by Statutory Auditors.
* **Claims by PACS:** Computerized PACS claims ceded with SCBs can be uploaded separately by respective banks with certification that no refinance has been availed from NABARD, duly certified by the banks’ Statutory Auditors, through the KRP module.
**Impact Analysis**
**Stakeholder: Public Sector Banks, Private Sector Banks (Rural and Semi-Urban Branches), Small Finance Banks**
* **Impact:** These institutions are responsible for providing loans under the MISS scheme and are directly affected by the regulations regarding interest subvention, prompt repayment incentives, and reporting requirements.
* **Action Required:** Ensure adherence to the guidelines for providing loans under the MISS, accurately report data on the KRP, complete e-KYC for farmers, and comply with the submission of claims process.
**Stakeholder: Farmers availing KCC loans**
* **Impact:** Farmers are directly impacted through access to short-term loans at concessional interest rates and additional benefits for prompt repayment. The scheme aims to improve access to credit for agricultural and allied activities.
* **Action Required:** Ensure Aadhaar seeding and authentication are completed, utilize digital banking channels where possible, and ensure timely repayment to avail additional interest subvention benefits.
**Stakeholder: Government of India**
* **Impact:** The Government of India is the sponsor of the program, which is an effort to promote financial inclusion to agriculture and allied sectors.
* **Action Required:** Not explicitly stated in the document.
**Stakeholder: Statutory Auditors**
* **Impact:** Responsible for auditing and certifying submitted claims.
* **Action Required:** Ensure timely submission of the accurate certificate of the KRP.
Key Entities Referenced
Modified Interest Subvention Scheme (MISS): A scheme providing interest subvention on short-term loans for agriculture and allied activities availed through Kisan Credit Card (KCC).
Kisan Credit Card (KCC): A credit card scheme that provides short-term loans to farmers for agriculture and allied activities.
Public Sector Banks (PSBs): Banks owned by the government and involved in providing loans under the MISS scheme.
Private Sector Banks: Banks owned privately and involved in providing loans under the MISS scheme for their rural and semi-urban branches.
Small Finance Banks (SFBs): Banks providing loans under the MISS scheme.
बेटी बचाओ
बेटी पढ़ाओ
भारतीय ररज़र्व बैंक
______________________ RESERVE BANK OF INDIA________________________
www.rbi.org.in
RBI/2025-26/193
FIDD.CO.FSD.BC.No.10/05.02.001/2025-26 January 13, 2026
The Chairman/Managing Director/Chief Executive Officer
All Public Sector Banks, Private Sector Banks and
Small Finance Banks
Madam/Dear Sir,
Modified Interest Subvention Scheme for Short Term Loans for Agriculture and
Allied Activities availed through Kisan Credit Card (KCC) during the financial year
2025-26
Please refer to our circular FIDD.CO.FSD.BC.No.8/05.02.001/2024-25 dated August 06,
2024 conveying the decision of the Government of India for continuation of the Modified
Interest Subvention Scheme for short term loans for agriculture and allied activities for
the year 2024-25.
2. In this regard, it is advised that Government of India has approved the continuation of
the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26 with the
following stipulations:
(i) In order to provide short term crop loans and short term loans for allied activities
including animal husbandry, dairy, fisheries, bee keeping etc. upto an overall limit
of ₹3 lakh to farmers through KCC at concessional interest rate during the year
2025-26, it has been decided to provide interest subvention to lending institutions
viz. Public Sector Banks (PSBs) and Private Sector Banks (in respect of loans
given by their rural and semi-urban branches only), Small Finance Banks (SFBs)
वित्तीयसमािशे नऔर विकासविभाग,केंद्रीय कायाालय, 10िीमंविल, केंद्रीय कायाालय भिन, पो.बा.सं.10014, म ंबई 400 001
टेलीफोन /Tel.No: 91-22-22661000 फैक्स/FaxNo: 91-22-22621011/22610948/22610943
ई-मेल/ Email ID:cgmincfidd@rbi.org.in
Financial Inclusion & Development Department, Central Office, 10thFloor, C.O. Building, Post Box No.10014, Mumbai 400 001
ह दंी आसान ै, इसका प्रयोग बढाइये
“चेतािनीररज़िाबकैंद्वारा - :मले , डाक,एसएमएसयाफोनकॉलकेिररएककसीकीभीव्यविगतिानकारीिसैेबकैंकेखातेकाब्यौरा,पासिडाआकदन ींमागंीिाती
।ैय धनरखनेयादनेेकाप्रस्तािभीन ींकरता ।ैऐसेप्रस्तािोंकाककसीभीतरीकेसेििाबमतदीविए।"
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or
offers funds to anyone. Please do not respond in any manner to such offers.and computerized Primary Agriculture Cooperative Societies (PACS) ceded with
Scheduled Commercial Banks (SCBs), on use of their own resources. This
interest subvention will be calculated on the loan amount from the date of its
disbursement/drawal/renewal up to the date of actual repayment of the loan by
the farmer or up to the tenure/ due date/renewal of loans fixed by the
banks/PACS, whichever is earlier, subject to a maximum period of one year. The
applicable lending rate to farmers and the rate of interest subvention for the
financial year 2025-26 will be as follows:
Lending rate to
Rate of Interest Subvention
Financial Year
farmers to Lending Institutions
2025-26 7% 1.50%
(ii) An additional interest subvention of 3% per annum will be provided to such of
those farmers repaying in time, i.e., from the date of disbursement/drawl/renewal
of the loan/s upto the actual date of repayment/tenure/due date or upto the due
date fixed by the banks for repayment of such loan/s, whichever is earlier, subject
to a maximum period of one year from the date of disbursement. This also implies
that the farmers repaying promptly as above would get short term crop loans
and/or short term loans for allied activities including animal husbandry, dairy,
fisheries, bee keeping etc. @ 4% per annum during the financial year 2025-26.
This benefit would not accrue to those farmers who repay their agri loans after
one year of availing such loans.
(iii) Interest subvention and prompt repayment incentive benefits on short term crop
loans and short term loans for allied activities will be available on an overall limit
of ₹3 lakh per annum subject to a maximum sub-limit of ₹2 lakh per farmer in
respect of those farmers involved only in activities related to animal husbandry,
dairy, fisheries, bee keeping etc. The limit for crop loan component will take
priority for interest subvention and prompt repayment incentive benefits and the
residual amount will be considered towards allied activities including animal
husbandry, dairy, fisheries, bee keeping etc. subject to the cap as mentioned
above. (Illustrations)
2(iv) In order to discourage distress sale by farmers and to encourage them to store
their produce in warehouses, the benefit of interest subvention under KCC will be
available to small and marginal farmers for a further period of upto six months
post the harvest of the crop against negotiable warehouse receipts on the produce
stored in warehouses accredited with Warehousing Development Regulatory
Authority (WDRA), at the same rate as applicable to the crop loan from the date
of pledge.
(v) To provide relief to farmers affected by natural calamities, the applicable rate of
interest subvention for that year will be made available to banks for the first year
on the restructured loan amount. Such restructured loans will attract normal rate
of interest from the second year onwards.
(vi) However, to provide relief to farmers affected due to severe natural calamities,
the applicable rate of interest subvention for that year will be made available to
banks for first three years/entire period (subject to a maximum of five years) on
the restructured loan amount. Further, in all such cases, the benefit of prompt
repayment incentive @3% per annum shall also be provided to the affected
farmers. The grant of such benefit in cases of severe natural calamities shall,
however, be decided by a High Level Committee (HLC) based on the
recommendations of the Inter-Ministerial Central Team (IMCT) and Sub
Committee of National Executive Committee (SC-NEC).
3. Further, banks are advised to adhere to the following stipulations:
(i) Mandatory Aadhaar Authentication: Aadhaar seeding and authentication are
mandatory for availing benefits under the scheme. All lending institutions must
ensure that e KYC is completed for every farmer to enable seamless access to
scheme benefits.
(ii) Validation of Multiple Accounts of beneficiaries: A farmer shall be eligible to
receive MISS benefit through multiple KCC subject to an overall limit of ₹3 lakh per
farmer across all such accounts. However, he/she shall be eligible to receive MISS
benefits for a specific land parcel through only one Kisan Credit Card (KCC)
account. In cases where a farmer maintains multiple KCC accounts linked to the
3same land parcel, MISS benefit shall be extended only to the account with the
highest sanctioned loan amount, subject to the overall limit.
(iii) Encouraging Digital Transactions: Banks may encourage farmers to utilize all
available digital banking channels, including RuPay cards, for seamless account
operations and transactions.
(iv) Reporting of Data: Banks are advised to capture and report the requisite granular
data of individual farmer beneficiaries under the scheme, including their social
category, on the KRP and ensure that such data is not changed in subsequent
periods. This data should be reported accurately to facilitate the settlement of
audited MISS claims for the year 2025–26.
(v) Accurate Crop Reporting on KRP: Field functionaries must exercise due
diligence in accurately reporting the data on crops sown on the KRP. Failure to do
so may lead to validation errors at a later stage.
(vi) Submission of MISS Claims on KRP: All eligible financial institutions shall strictly
follow the operational instructions and ensure timely uploading of MISS claims on
KRP, duly certified by their Statutory Auditors as true and correct, as per date
notified from time to time.
(vii) Submission of Claims by PACS Ceded with SCBs: The claims in respect of
computerized PACS ceded with SCBs may be uploaded separately by the
respective banks, with the certification that interest subvention/prompt repayment
incentive is being claimed on loans for which no refinance has been availed from
NABARD, duly certified by the banks’ Statutory Auditors, through KRP module.
Yours faithfully,
(R. Giridharan)
Chief General Manager
4Illustrations
Illustration I
Overall KCC limit - ₹2.5 lakh
Limit under Crop loan - ₹1.5 lakh
Sub-limit under Animal Husbandry and/or Dairy and/or Bee keeping and/or Fisheries – ₹1 lakh
IS and PRI benefit will be available on overall ₹2.5 lakh i.e.
• ₹1.5 lakh -Crop loan + ₹1 lakh- Animal Husbandry and/or Dairy and/or Bee keeping and/or
Fisheries
Illustration II
Overall KCC limit - ₹3 lakh
Limit under Crop loan - ₹0.5 lakh
Sub-limit under Animal Husbandry and/or Dairy and/or Bee keeping and/or Fisheries – ₹2.5 lakh
IS and PRI benefit will be available on overall ₹2.5 lakh i.e.
• ₹0.5 lakh - Crop loan + ₹2 lakh - Animal Husbandry and/or Dairy and/or Bee keeping and/or
Fisheries
Illustration III
Overall KCC limit - ₹4 lakh
Limit under Crop loan - ₹1.75 lakh
Sub-limit under Animal Husbandry and/or Dairy and/or Bee keeping and/or Fisheries– ₹2.25 lakh
IS and PRI benefit will be available on overall ₹3 lakh i.e.
• ₹1.75 lakh -Crop loan + ₹1.25 lakh - Animal Husbandry and/or Dairy and/or Bee keeping and/or
Fisheries
Illustration IV
Overall KCC limit - ₹4.5 lakh
Limit under Crop loan - ₹2 lakh
Sub-limit under Animal Husbandry and/or Dairy and/or Bee keeping and/or Fisheries – ₹2.5 lakh
IS and PRI benefit will be available on overall ₹3 lakh i.e.
• ₹2 lakh - Crop loan + ₹1 lakh - Animal Husbandry and/or Dairy and/or Bee keeping and/or
Fisheries
Illustration V
Overall KCC limit - ₹4 lakh
Limit under Crop loan - ₹3.15 lakh
Sub-limit under Animal Husbandry and/or Dairy and/or Bee keeping and/or Fisheries – ₹0.85 lakh
IS and PRI benefit will be available on overall ₹3 lakh for crop loan component only
*******
5