The Modified Interest Subvention Scheme (MISS) is run by the Ministry of Agriculture and Farmers Welfare, Government of India, to keep short-term farm credit affordable through the Kisan Credit Card (KCC). It was launched because institutional credit at fair rates was hard to access for many farmers, forcing them toward expensive private lenders. Under MISS, banks lend to farmers at a subsidised rate while the Centre reimburses part of the interest cost, and an independent evaluation by the Institute for Social and Economic Change (ISEC), Bengaluru has found that every ₹1 spent under the scheme adds ₹2.30 in net value to the agriculture and allied sector. The scheme is jointly administered by the Reserve Bank of India (RBI) and NABARD.
MISS Overview
- Scheme Name – Modified Interest Subvention Scheme (MISS)
- Scheme Modification Date – Continued for FY 2025-26 by Union Cabinet approval (28 May 2025); Budget 2026 has kept the KCC-MISS framework, including the ₹5 lakh loan limit, unchanged
- Scheme Fund Allocated – 100% funded by the Government of India as a Central Sector Scheme; the yearly outlay is decided through the Union Budget and Cabinet approval, so it is not a fixed figure across years
- Type of Scheme – Central Government (Central Sector Scheme)
- Helpline No – Kisan Call Centre, 1800-180-1551 (toll-free, 22 local languages); farmers can also reach out to their KCC-issuing bank branch
- States Covered – All-India; select states add a further top-up subvention through separate agreements
Objectives of the Scheme
- Guarantee affordable, timely short-term credit to farmers through KCC
- Cut farmers' dependence on high-interest informal lending sources
- Reward disciplined, on-time loan repayment through a dedicated incentive
- Widen affordable credit access to animal husbandry, dairy, and fisheries alongside crop loans
- Build resilience for farmers hit by natural calamities through relief on restructured loans
Key Features of MISS
- KCC loan limit for interest subvention was raised from ₹3 lakh to ₹5 lakh under Union Budget 2025-26
- Base interest rate on eligible short-term crop loans is 7% per annum
- Government provides 1.5% Interest Subvention (IS) to lending institutions on qualifying loans
- A further Prompt Repayment Incentive (PRI) of up to 3% applies for on-time repayment, bringing the effective rate down to about 4%
- Interest benefit for loans exclusively for animal husbandry or fisheries is capped at ₹2 lakh
- Available through Public Sector Banks, Private Sector Banks, Small Finance Banks, RRBs, Cooperative Banks, and computerised PACS linked to Scheduled Commercial Banks
- Claims are processed digitally through the Kisan Rin Portal (KRP), introduced in 2023 for faster, transparent settlement
- Covers more than 7.7 crore KCC accounts nationwide
MISS Benefits to Farmers
- Short-term working capital available at a fraction of open-market lending rates
- Higher ₹5 lakh limit gives farmers more room to fund larger input and cultivation costs
- Effective borrowing cost of around 4% for farmers who repay within the due date
- Coverage extends to dairy, poultry, and fisheries income sources, not just crop cultivation
- Faster claim settlement through the Kisan Rin Portal reduces delays for banks passing on the benefit
- Cushion against loan stress after floods, drought, or other calamities through restructured-loan subvention
Limitations of the Scheme
- The concessional rate and PRI apply only within the notified loan limit; borrowing beyond it attracts standard interest
- Animal husbandry or fisheries loans taken on their own are capped at a lower ₹2 lakh limit
- Aadhaar linkage with the bank account is compulsory to claim the subvention
- Any delay in repayment forfeits the Prompt Repayment Incentive for that loan cycle
- Benefit only reaches farmers who hold a KCC and borrow through the formal banking system
Documents Required
- Aadhaar Card (mandatory)
- Land record or tenancy/lease proof
- Bank account passbook
- Passport-size photograph
- KCC application form
- Proof of crop or allied-activity details, where applicable
How to Apply for the Modified Interest Subvention Scheme
- Approach your bank branch, its mobile/net banking app, or a Common Service Centre (CSC) to apply for a Kisan Credit Card.
- Submit Aadhaar, land documents, a passport photo, and the KCC application form.
- Ensure your Aadhaar is linked to the bank account used for the loan, since this is mandatory for the subvention.
- Once the KCC loan is sanctioned, the bank applies the concessional 7% rate at disbursal itself — no separate application is needed for the subvention.
- Repay the loan on or before the due date to claim the additional Prompt Repayment Incentive.
- The bank later recovers its subvention amount from RBI or NABARD through the Kisan Rin Portal.
Conclusion
The Modified Interest Subvention Scheme continues to be one of the Centre's most direct tools for keeping agricultural credit affordable, and the recent hike in the KCC loan limit to ₹5 lakh gives farmers greater flexibility to meet rising input costs. With digital claim processing through the Kisan Rin Portal and continued Cabinet backing into FY 2025-26, MISS remains a dependable route for farmers to access low-cost, timely credit — provided they hold a KCC, link their Aadhaar, and repay on schedule.
Disclaimer: This article is for informational purposes only. Scheme details, interest rates, and subvention amounts are subject to periodic revision by the Government of India, RBI, and NABARD. Farmers are advised to verify the latest terms and eligibility criteria with their bank, NABARD, or official government sources before applying.
