Modified Interest Subvention Scheme:
The Centre plans to increase the upper limit of the short-term crop loans under the Modified Interest Subvention Scheme (MISS) from Rs 3 lakh to Rs 5 lakh.
- Modified Interest Subvention Scheme is a Central Sector Scheme, 100% funded by the Government of India.
- It was launched in the year 2006-07 with a view to provide short term Agri-loans availed by farmers through Kisan Credit Card (KCC) for their working capital requirements at concessional rate of interest.
- At present, interest subvention is being given to concerned Financial Institutions (Scheduled Commercial Banks (SCBs)/ Small Finance Banks/ RRBs/ Cooperatives/ Computerized PACS ceded with SCBs) providing the loan.
- Farmers engaged in Agriculture and other allied activities can acquire Kisan Credit Card loans up to Rs 3 lakh at a benchmark rate of 9%.
- However, the Centre provides 2% interest subvention on the benchmark rate, bringing down the effective rate of interest to 7 per cent.
- An additional 3% concession for prompt and timely repayment further reduces it to 4% per year.
