Modified Interest Subvention Scheme: KCC Loans and Farmer Credit

Category: Government Schemes → Agriculture → Institutional Credit

What is MISS?

The Modified Interest Subvention Scheme (MISS) provides subsidised short-term agricultural credit through the Kisan Credit Card (KCC) system.

Key Features

  • Short-term agricultural loans

  • Overall eligible limit → ₹3 lakh

  • Standard concessional rate → 7%

  • Government interest subvention to eligible lending institutions → 1.5%

  • Prompt repayment incentive → up to 3%

  • Effective interest rate for eligible prompt-repaying farmers → 4%.

Allied Activities

The scheme also covers activities such as:

  • Dairy

  • Fisheries

  • Animal husbandry

  • Beekeeping

For farmers engaged only in certain allied activities, the applicable sub-limit is ₹2 lakh.

UPSC Key Pointers

MISS → KCC → short-term credit → 7% → prompt repayment → 4%