Modified Interest Subvention Scheme (MISS)

MISS is the Government of India scheme that pays banks a 1.5% p.a. interest subvention on short-term crop and allied-activity loans issued through the Kisan Credit Card, so the rate charged to farmers is 7% instead of the bank’s normal lending rate. It is not a scheme farmers separately apply to.

No. There is no MISS application form. You apply for (or draw against) a KCC at any bank branch, and if your loan account is Aadhaar-linked, the bank applies the 1.5% subvention automatically at disbursal.

The subsidised rate is 7% p.a. If you repay by the due date the bank fixes, an additional 3% Prompt Repayment Incentive (PRI) is credited, bringing your effective rate down to 4% p.a. for that loan.

It is the extra 3% p.a. benefit credited only when you repay a MISS-covered loan by its due date. Repay late, and you keep the 7% subsidised rate but lose the PRI, so you pay more than the 4% on-time rate for that loan.

₹3 lakh overall per farmer per year, combining crop loans and allied-activity loans. Where a loan is taken exclusively for animal husbandry or fisheries, the ceiling for that portion is ₹2 lakh.

Both. Short-term working-capital loans for animal husbandry, dairy, fisheries and beekeeping are covered, alongside crop production loans, subject to the ₹2 lakh sub-limit when the loan is exclusively for these allied activities.

Yes. The bank cannot claim the interest subvention or Prompt Repayment Incentive on your behalf unless your KCC loan account is linked to Aadhaar.

No. The subvention is paid by the Government of India to the bank (via RBI for commercial/private/small finance banks, via NABARD for cooperative banks and RRBs), and the bank passes the benefit on by charging you a lower interest rate from the start — you never receive a separate payment.

It rides on the general RBI rule that agricultural loans up to ₹2 lakh per borrower need no collateral or margin, effective 1 January 2025 (raised from ₹1.6 lakh). Above ₹2 lakh, the bank may ask for security at its discretion.

The Union Budget 2025-26 announced raising the KCC/MISS crop-loan and allied-activity ceiling to ₹5 lakh, but the RBI and NABARD circulars implementing the 1.5% subvention and 3% PRI still officially quote the ₹3 lakh (₹2 lakh for animal husbandry/fisheries-only) slabs as of the last fact-check. Treat ₹3 lakh as the confirmed subvention ceiling and check with your bank for the latest applicable limit.

It is a Central Sector Scheme of the Ministry of Agriculture & Farmers Welfare. The Reserve Bank of India settles claims for public sector banks, private sector banks and small finance banks; NABARD settles claims for cooperative banks and Regional Rural Banks — both through the Kisan Rin Portal.

The Union Cabinet approved continuing the Interest Subvention component of MISS for FY 2025-26 on 28 May 2025, at an estimated cost of ₹15,640 crore to the exchequer for that year.

Yes. MISS follows the same borrower categories as the Kisan Credit Card — owner-cultivators, tenant farmers, oral lessees, sharecroppers, and farmer Self Help Groups or Joint Liability Groups formed by them are all covered.

Where a calamity is officially declared, banks may restructure the affected loan and the interest-subvention benefit can continue to apply on the restructured loan for an extended period, as part of the same relief measures available under the Kisan Credit Card Scheme.

Raise it first with the branch, since MISS has no dedicated public helpline of its own. If unresolved, escalate to the bank’s internal grievance cell and then to the Reserve Bank under the RBI Integrated Ombudsman Scheme, toll-free 14448 — the same route used for other Kisan Credit Card complaints.