Modified Interest Subvention Scheme (MISS)

The Modified Interest Subvention Scheme is what makes Kisan Credit Card borrowing cheap. The bank lends at its own rate; the government pays part of the interest so the farmer's rate comes down to a fixed level.

It was modified in 2022 from the earlier Interest Subvention Scheme, and is one of the largest items in the agriculture budget — ₹22,600 crore in 2024-25, and the same ₹22,600 crore budgeted for 2026-27.

The rate you actually pay

• Lending institutions receive a 1.5% rebate for lending at 7%.
• A farmer who repays promptly gets a further 3% rebate, which is what takes the effective rate down to 4%.
• Budget 2025-26 raised the KCC loan limit under MISS from ₹3 lakh to ₹5 lakh.
• The scheme covers farmers in animal husbandry, dairy and fisheries, not only crop farmers.

• Farmers holding a short-term Kisan Credit Card loan from a participating bank.
• Includes farmers whose activity is animal husbandry, dairy or fisheries, within the ₹2 lakh sub-limit for allied activities alone.
• The subvention is applied by the lending bank — you do not claim it from the government yourself.

• The concession applies only up to the stated limits. Borrowing beyond them carries the bank's commercial rate.
• The extra 3% is conditional on prompt repayment. Miss the repayment date and you pay 7% instead of 4%, and the difference on a ₹3 lakh loan is substantial.
• This is an interest subsidy, not a loan waiver.

How to get it

The subvention is applied by your bank on an eligible KCC account, so there is no separate application. What you need to do is:

1. Confirm with your branch that your KCC account is flagged for interest subvention under MISS.
2. Ask for the exact prompt-repayment date for your account and the rate that applies if you miss it.
3. Check your interest debit on your passbook or statement against the 7% (or 4%) you were promised, and raise it with the branch immediately if it does not match.

The last step matters. A subvention that the branch has not applied to your account shows up as a higher interest debit, and it is easier to correct in the same season than afterwards.