Modified Interest Subvention Scheme (MISS)

Modified Interest Subvention Scheme (MISS): Recently, the Union Cabinet approved the continuation of the Modified Interest Subvention Scheme (MISS) for 2025–26.

o The scheme retains the 1.5% interest subvention on short-term agricultural loans to support farmers and strengthen rural credit.

• About MISS: A centrally sponsored initiative aimed at providing farmers with low-interest short-term loans through the Kisan Credit Card (KCC), promoting timely repayments.

o Launched  in 2006–07 to enhance access to agricultural credit and reduce the burden of rural indebtedness(under Ministry of Agriculture and Farmers’ Welfare)

o Operated jointly by the Reserve Bank of India (RBI) and NABARD through various banking channels, including public and private sector banks, RRBs, and cooperative banks.

• Major Highlights for FY 2025–26: Includes crop production, animal husbandry, and fisheries, with a limit of ₹2 lakh for non-crop sectors.

o banks and an additional 3% rebate for prompt repayment, bringing the effective rate down to 4%.

o The proposed Budget 2025–26 seeks to raise the eligible loan ceiling to ₹5 lakh to better meet expanding agricultural requirements.

o Offers a 2% interest concession on restructured loans in disaster-affected areas.

o The scheme currently supports over 7.75 crore KCC accounts, strengthening rural credit accessibility.

o The Kisan Rin Portal (KRP), introduced in 2023, streamlines the process for submitting and tracking interest subvention claims.