The Modified Interest Subvention Scheme (MISS) 2025-26 is a crucial initiative by the Indian government to strengthen the credit ecosystem for farmers and boost rural growth with affordable finance. Here is a detailed blog exploring every aspect of this scheme—including its objectives, benefits, eligibility, and operational mechanism—with clarity and comprehensive coverage.

What is the Modified Interest Subvention Scheme (MISS) 2025-26?

The Modified Interest Subvention Scheme (MISS) is a central sector scheme extended for FY 2025-26 by the Ministry of Agriculture & Farmers’ Welfare of India. The primary goal is to ensure the availability of short-term crop loans at highly subsidized interest rates, helping farmers sustain operations, invest in productivity, and improve rural incomes .

Objectives of MISS 2025-26

• Ensuring affordable farm credit: Lowering the cost of credit so farmers can access working capital for crops and allied activities .

• Encouraging prompt loan repayment: Providing additional interest discount for farmers who repay on time.

• Enhancing credit flow: Channelizing loans to millions of farmers via Kisan Credit Card (KCC) and rural/agricultural banks.

Key Features and Benefits

Subsidized Interest Rate

• 7% per annum: All eligible farmers can avail short-term crop loans up to ₹3 lakh at 7% interest per annum through KCC or other channels .

• Prompt Repayment Incentive: If a farmer repays promptly, an extra 3% interest subvention is made available, bringing the effective rate down to just 4% per annum.

Scope of Coverage

• Loans for animal husbandry and fisheries up to ₹2 lakh are also covered under similar benefit norms.

• Over 7.75 crore KCC account holders are eligible, reflecting the scheme’s massive reach.

Institutional Support

• Implemented in collaboration with RBI and NABARD, ensuring a robust claim and reimbursement process for banks .

Eligibility and Beneficiary Identification

Who is Eligible?

• All farmers borrowing short-term loan for crop production purposes via Kisan Credit Cards (KCC) from scheduled commercial banks, rural banks, and cooperative societies.

• Farmers borrowing for animal husbandry and fisheries activities up to the specified limit.

Eligible Loan Amount

• Up to ₹3 lakh for crop loans.

• Up to ₹2 lakh for animal husbandry/fishery activities.

How the Scheme Operates

Interest Subvention to Banks

• Lending institutions (public, private, cooperative banks, and RRBs) receive an interest subvention of 1.5% as compensation for offering loans at subsidized rates.

• They also get reimbursement for the additional 3% subvention provided as a prompt repayment incentive.

Digital Transparency

• The scheme claims process has been made more transparent and efficient via the Kisan Rin Portal, streamlining farmer enrolment and benefit delivery.

Impact and Government Commitment

• Institutional credit flow to farming has significantly increased with over 7.75 crore KCC accounts active.

• The scheme is widely acknowledged as pivotal for boosting agricultural output and ensuring financial stability for India’s rural population.

Reference Government Circular

For the most authentic and latest updates, refer to the official government circular on MISS 2025-26:

• PIB Press Release: Modified Interest Subvention Scheme 

Conclusion

The Modified Interest Subvention Scheme (MISS) 2025-26 is a cornerstone financial support for Indian farmers. By slashing interest rates, encouraging prompt repayments, and increasing financial inclusion, MISS drives the nation closer to inclusive rural prosperity and a robust agricultural sector.

For continuous updates and application details, visit the Ministry of Agriculture’s official site or speak to your nearest rural bank branch.