Miss: The government has given Rs 15642 crore for interest subsidy, farmers get more cheap
To assist farmers across the country, the Union Cabinet approved the continuation of the revised interest grant scheme (Miss) for the financial year 2025–26. In addition, the government has approved the release of Rs.15.6,000 crore for farmers for interest subsidy on agricultural loans. According to the scheme, 1.5 per cent annual interest grant on short -term crop loans by Kisan Credit Card (KCC) is Rs 3 lakh. With this decision, farmers who repay the time will get only 4 % of the agricultural loans, including the incentive (PRI), with an effective interest rate.
What are the benefits to the farmers
- Cheap Loan: Farmers can only get working capital for 4 percent annual interest, which is one of the lowest rates worldwide.
- Comfortable loan: Revolving credit facility is available for 5 years through KCC.
- Relief in disaster: In the case of natural disaster, one year interest relief and serious disasters are relieved for 5 years.
- Small and marginally benefit farmers: Now 76 percent of agricultural loan accounts are with small farmers – this scheme strengthens the spine of Indian agriculture.
- Without bail loan: There is no need for bail for loans up to Rs 2 lakh.
- Increase productivity: General loan availability is possible to use better seeds, fertilizer and equipment, which can lead to yield and income increase.
Also read: The Haryana government approves the new agricultural scheme, spending Rs 1,267 crore
Credit growth is the success of this scheme
Debt distribution through KCC Rs. From 4.26 lakh crore (2014) to Rs 9.81 lakh crore (2024). The total agricultural loan flow has increased from Rs 7.3 lakh crore to Rs 25.49 lakh crore. The part of the organizational loan exceeds 75 percent, which reduces the dependence of farmers on the moneylenders. The NPAs of the agriculture sector declined from 8.9 % to 7.2 % in 2023, while KCC’s NPA declined from 12.66 percent to 11.5 percent in 2021–22 to 11.5 % in 2023–24 – reflecting good debt performance and restoration.
Digital version for transparency – Kisan Debt Portal (KRP)
The government has launched the Kisan Rin Portal – KRP, which allows for digital tracking of interest grant claims. This makes the distribution faster, transparent and responsible, which benefits the farmer and the bank.
Also read: Kharif MSP: The government has given Kharif MSP Rs 2,07,000 crore
What happens later
The government is committed to the 2025 budget of 2025 to increase the KCC limit to Rs 5 lakh. This proposal is active. Today’s Cabinet decision ensures constant assistance to farmers in accordance with the existing regulations.
