Modified Interest Subvention Scheme (MISS)

Introduction 

Modified Interest Subvention Scheme (MISS) is a central sector agriculture scheme launched by the Government of India in 2006–07. It offers farmers short-term credit through the Kisan Credit Card (KCC) at a 7% interest rate. The government provides a 1.5% interest subvention to banks and up to 3% prompt repayment incentive for eligible borrowers, lowering the effective rate to 4%. The scheme benefits farmers with loans up to ₹3 lakh for crops and ₹2 lakh for animal husbandry or fisheries activities. Eligible farmers can apply for MISS through public and private banks, regional rural banks, and cooperative banks under RBI and NABARD oversight. MISS addresses the problem of limited access to affordable formal credit in India’s rural areas, reducing reliance on expensive informal lenders. By easing finance for seeds, fertilizers, machinery, and allied activities, the scheme boosts productivity and supports financial inclusion for small and marginal farmers. Its collateral-free credit features suit small landholders with minimal paperwork, making eligibility clear and the application process swift. With over 7.75 crore KCC accounts, MISS remains a policy to strengthen credit flow and agricultural growth in India. Claims tracking via the Kisan Rin Portal speeds disbursal and enhances accountability for stakeholders.

Overview of the Scheme

1. Launched by the Government of India under the Ministry of Finance in Budget 2006–07 (effective Kharif 2006–07) as a central sector agriculture scheme.
2. Implementing agencies include public sector banks, regional rural banks and cooperative banks (with private sector bank branches added from 2013–14), operating under NABARD oversight and guidance from the Department of Agriculture & Farmers Welfare.
3. The funding pattern is 100% central funding. The Government of India bears the full cost of the 1.5% interest subsidy paid to lending institutions and the prompt repayment incentive of up to 3% offered to farmers.
4. Coverage spans short-term crop loans up to ₹3 lakh through the Kisan Credit Card and allied activities like animal husbandry and fisheries up to ₹2 lakh. Farmers receive loans at 7% interest with subvention and incentives effectively reducing their rate to 4%.
5. The scheme is ongoing and was approved for continuation in FY 2025-26 with no structural changes. Digital claim processing via the Kisan Rin Portal improves transparency and speeds disbursal for farmers and banks alike.

Objectives 

The Modified Interest Subvention Scheme (MISS) objectives focus on making credit affordable and accessible to farmers, promoting timely repayments, and strengthening formal lending channels in rural India. These goals guide the scheme’s design and implementation to support agricultural growth and financial inclusion.

• Increase access to short-term credit under the Kisan Credit Card by offering loans up to ₹3 lakh for crop production and up to ₹2 lakh for allied activities, ensuring farmers can meet input costs.
• Reduce borrowing costs by providing a 1.5 percent interest subvention to banks and up to 3 percent prompt repayment incentive to farmers, cutting the effective rate to 4 percent.
• Promote disciplined credit use and financial responsibility by rewarding timely loan repayment through a clear incentive structure.
• Support allied agriculture sectors – such as animal husbandry and fisheries – within the same subvention framework to diversify farmers’ income sources.
• Enhance financial inclusion of small and marginal farmers by extending collateral-free credit and simplifying the application process.
• Strengthen transparency and efficiency in claim processing through digital tools like the Kisan Rin Portal, reducing delays and improving accountability.

These objectives reflect the core purpose of the MISS agriculture scheme: to improve farmers’ access to formal credit, lower their finance costs, and foster sustainable rural development.

Key Features / Benefits 

• Interest subvention for crop loans 

Provides a 1.5 percent subsidy on the interest charged by banks for short-term crop loans up to ₹3 lakh under the Kisan Credit Card, reducing borrowing costs for farmers. (Example: If a bank’s rate is 7 percent on a ₹2 lakh loan, the government pays 1.5 percent, lowering the farmer’s cost.)

• Prompt repayment incentive for farmers 

Offers an extra 3 percent grant back to farmers who repay their KCC loans up to ₹3 lakh by the due date, rewarding timely repayment and encouraging credit discipline. (Example: A ₹1 lakh loan repaid on schedule earns a ₹3,000 incentive.)

• Effective interest rate of 4 percent 

Combines the 1.5 percent subvention and 3 percent incentive to cut the farmer’s net rate from 7 percent to just 4 percent, making formal credit far more affordable.

• Loan limits for allied activities 

Extends similar benefits to animal husbandry, fisheries, and other allied agriculture loans up to ₹2 lakh under the KCC, supporting income diversification.

• Collateral-free credit assistance 

Allows eligible farmers to access credit without land or asset security, simplifying approval and expanding reach among small and marginal growers.

• 100 percent central funding 

Ensures the entire subsidy and incentive cost is borne by the Government of India, guaranteeing uninterrupted flow of benefits without state contributions.

• Broad banking network implementation 

Operates through public and private sector banks, regional rural banks, and cooperative banks under NABARD oversight, ensuring widespread scheme delivery.

• Simple KCC-based application 

Uses the existing Kisan Credit Card process with minimal paperwork, so farmers can apply for benefits seamlessly alongside their routine credit needs.

• Digital claim processing 

Leverages the Kisan Rin Portal for real-time tracking and quick reimbursement of subsidies to banks, boosting transparency and speeding up fund transfers.

• Annual continuity and extension 

Has run continuously since its launch in 2006–07 and was approved for FY 2025–26, reflecting sustained government commitment to rural credit support.

• Promotion of formal lending 

Strengthens the flow of bank credit into agriculture, curbing dependence on high-cost informal lenders and fostering financial inclusion.

• Encouragement of credit discipline 

Combines subvention and repayment incentives to motivate farmers toward punctual loan servicing, benefiting both borrowers and lending institutions.

Eligibility Criteria 

Eligibility for the Modified Interest Subvention Scheme (MISS) is based on clear, documented criteria to ensure that credit assistance reaches genuine agriculture stakeholders. Below is a reader-friendly breakdown by beneficiary type, followed by a summary of required documents and noted exclusions.

Farmers
MISS covers individual farmers holding Kisan Credit Cards (KCC). Eligible farmers must:

• Be resident Indian citizens with active KCC accounts.
• Hold land records or a written lease for the crop area.
• Be within the prescribed age range (18–70 years) as per bank norms.
• Submit proof of identity (Aadhaar, Voter ID, or Passport) and proof of residence (ration card or utility bill). Not Eligible: Corporate farmers, restructured loans, and overdue KCC accounts.

Self-Help Groups (SHGs)
SHGs can access subvention if they:

• Are registered under any State or Central SHG scheme.
• Maintain an active savings account linked to a KCC.
• Have completed at least one year of group activity and timely loan repayments. Not Eligible: Newly formed groups without bank linkage.

Farmer Producer Organizations (FPOs)
To qualify, FPOs must:

• Be registered under the Companies Act or Cooperative Societies Act.
• Have at least 10 active farmer-members.
• Operate ongoing agriculture or allied-sector activities. Not Eligible: FPOs without verified member records or dormant operations.

Entrepreneurs / Start-ups / MSMEs
Agro-enterprises can apply when they:

• Possess UDYAM or appropriate GST registration.
• Operate in agriculture, agri-processing, or allied services. Not Eligible: Non-agriculture businesses and entities without valid registration.

Special Categories
Women farmers, SC/ST beneficiaries, and those in North-Eastern & Himalayan states enjoy the same subvention rates but may receive additional state incentives where applicable.

Required Documents
Applicants must submit:

• KCC application form or loan renewal form.
• Aadhaar card for identity verification.
• Land records or lease agreement for farmers.
• Bank passbook copy with KCC details.
• Registration certificates for SHGs, FPOs, and MSMEs.
• Project report or activity proof for FPOs and entrepreneurs.

Each eligibility criterion ensures that MISS assistance flows transparently to deserving agriculture stakeholders, simplifying access while protecting the integrity of the scheme.

Application Process

To apply for MISS benefits, you simply use the existing Kisan Credit Card (KCC) channel – there’s no separate MISS form. You can apply online (if your bank offers an e-KCC portal) or visit your nearest bank branch. Below is a clear, step-by-step guide:

Where to apply 

• Online: Log in to your bank’s KCC portal (if available) and select “Kisan Credit Card Application.” 
• Offline: Visit the nearest branch of any public/private bank, regional rural bank, or cooperative bank.

Registration/Login 

• For online users, register with your Aadhaar-linked mobile number and set a password. Then log in. 
• Offline applicants can pick up the KCC application form at the branch.

Fill the application form 

• Section A: Beneficiary details (name, age, address, Aadhaar). 
• Section B: Land/farm details (survey number, area, crop pattern). 
• Section C: Loan requirements (amount up to ₹3 lakh for crops; up to ₹2 lakh for allied activities). 
• Section D: Bank information (account number, branch IFSC).

Documents to submit 

• Proof of identity (Aadhaar, Voter ID, or Passport). 
• Proof of residence (ration card or utility bill). 
• Land records or lease agreement. 
• Passport-size photo. 
• Latest bank passbook copy.

Fee 

• No separate fee for MISS; normal KCC processing charges apply as per bank rules.

Acknowledgment 

• Online: You’ll receive an application ID on screen and by SMS.
• Offline: The bank issues a receipt with your application number.

Verification and field inspection 

• Bank officers may visit your farm to confirm land and cropping patterns before sanctioning the loan.

Approval and disbursal 

• On sanction, your KCC limit is activated. You draw funds as cash or transfer. 
• Banks automatically apply the 1.5% subvention and 3% prompt-repayment incentive when calculating interest. 
• Subvention claims are filed by banks via the Kisan Rin Portal (https://kisanrin.gov.in).

Assistance release timeline 

• Banks submit subsidy claims quarterly; the Ministry of Finance reimburses within 45 days.

Offline assistance points 

• You can also approach your Block Agriculture Office, Krishi Vigyan Kendra, or ATMA centre for guidance and the KCC form.

Helpline 

• National Agriculture Helpline: 1551 (toll-free) or 1800-180-1551 for general queries and technical support.

Tips:

• Ensure your name exactly matches across Aadhaar, land records, and bank account.
• Upload clear, legible copies of all documents to avoid delays.
• Double-check land survey numbers and area measurements before submission.
• Note application deadlines for each quarter’s claim cycle to qualify for prompt-repayment incentive.

Challenges or Limitations 

While the Modified Interest Subvention Scheme (MISS) eases farm credit costs, farmers and banks sometimes face hurdles in getting benefits on time. Below are common challenges and practical solutions to help you navigate the process smoothly.

• Delay in field verification → Keep land records and cropping details up to date and readily available to speed up bank inspections.
• Slow subsidy reimbursement to banks → Ask your branch to file claims promptly via the Kisan Rin Portal (https://kisanrin.gov.in) and retain repayment receipts for reference.
• Seasonal application bottlenecks → Apply early in the quarter before peak demand, so your loan and subvention get processed without waiting for budget releases.
• Documentation mismatches → Double-check that names, survey numbers, and Aadhaar or voter ID details match exactly across all papers to avoid rejection.
• Uncertainty around allied activity loans → Confirm with your bank the eligibility and loan limit (up to ₹2 lakh) for fisheries or animal husbandry before filling out the form.
• Missed prompt-repayment window → Note your KCC repayment due dates in advance and plan withdrawals or overdraft clearances to secure the full 3 percent incentive.
• Limited awareness among new applicants → Visit your nearest Krishi Vigyan Kendra or call the National Agriculture Helpline at 1551 to clarify scheme rules before applying.
• Digital portal glitches → If online submission stalls, complete the application at your bank branch or seek help from the bank’s nodal MIS officer to ensure your claim isn’t delayed.

Government Support & Future Outlook 

Convergence of the Modified Interest Subvention Scheme (MISS) with other key agriculture missions amplifies support to farmers and producer groups. By layering MISS’s low‐cost credit on top of income, insurance, and infrastructure schemes, stakeholders gain a complete package of financial and technical assistance.

• Linkage with PM-KISAN and soil health programmes 

Farmers drawing subsidised loans under MISS can also receive direct income support via PM-KISAN and free soil testing from the Soil Health Card scheme. This ensures they have both working capital and better crop planning.

• Integration with PMFBY and crop insurance 

Borrowers under MISS automatically qualify for subsidised crop insurance through the Pradhan Mantri Fasal Bima Yojana, protecting their investments and credit history against weather risks.

• Support alongside ATMA and RKVY projects 

District-level ATMA (Agricultural Technology Management Agency) and state RKVY (Rashtriya Krishi Vikas Yojana) interventions on training, demo plots, and value-addition are strengthened when farmers have assured credit from MISS.

• Convergence with custom hiring centres 

Smallholders accessing low‐interest loans can invest in machinery from nearby custom hiring centres, improving farm efficiency without high capital outlay.

• FPO linkages with PMFME and grant schemes 

Farmer Producer Organizations benefitting from MISS credit can tap the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme for equipment grants and marketing support.

Future plans under the Union Budget 2025–26 include continued central funding for MISS through FY 2026 and expanded digital monitoring via the Kisan Rin Portal. This ongoing alignment with flagship programmes will help farmers and FPOs access a single, streamlined support ecosystem – combining credit, insurance, inputs, and capacity building for stronger, more resilient agricultural growth.

Conclusion 

By lowering borrowing costs and simplifying credit access, the Modified Interest Subvention Scheme (MISS) plays a vital role in strengthening farm incomes and promoting financial inclusion in rural India. Small and marginal farmers, women producers, allied‐sector entrepreneurs, SHGs and FPOs benefit most from its subsidised interest rates and prompt‐repayment incentives. 

To apply, check your eligibility on the Kisan Rin Portal (https://kisanrin.gov.in) or visit your bank’s Kisan Credit Card section at the nearest branch, making sure documents like Aadhaar, land records and a bank passbook are ready. For current scheme details or questions, call the National Agriculture Helpline at 1551. Taking this simple action step can help you secure lower‐cost credit, improve repayment discipline and unlock the full benefits of the scheme. Always verify the latest guidelines on the official portal or helpline before applying, so you stay informed and prepared.