Government Strengthens Farmer Support through Continued Interest Subvention – KCC and MISS Remain Cornerstone of Agri Credit

Government Strengthens Farmer Support through Continued Interest Subvention – KCC and MISS Remain Cornerstone of Agri Credit

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:

Credit Growth Reflects Success:

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 seamless continuation of support to farmers under existing provisions.