The Union Cabinet has approved the continuation of the Modified Interest Subvention Scheme (MISS) for 2025–26, ensuring short-term agricultural loans remain affordable.
The scheme retains a 1.5% interest subvention to lending institutions, enabling farmers to access loans up to Rs 3 lakh at a 7% base rate. With a Prompt Repayment Incentive (PRI) of 3%, timely borrowers can secure credit at an effective 4% interest rate. Loans up to Rs 2 lakh for animal husbandry and fisheries are also covered.
With over 7.75 crore active Kisan Credit Card accounts, MISS plays a key role in strengthening institutional credit access for small and marginal farmers.
The decision comes amid rising agricultural credit flows and aims to sustain financial inclusion and farm productivity without altering the scheme’s structure.
