Modified Interest Subvention Scheme for KCC Loans in FY 2024-25

Current Context: The Government of India has extended the Modified Interest Subvention Scheme (MISS) for short-term agricultural loans through Kisan Credit Cards (KCC) for the financial year 2024-25.

• This scheme provides interest subvention on loans up to ₹3 lakh for crop and allied activities, such as animal husbandry and dairy, with a base rate of 7% and a subvention of 1.5%.
• Farmers who repay their loans on time can benefit from an additional 3% subvention, reducing the effective interest rate to 4%.
• The scheme also supports small farmers storing produce in accredited warehouses for up to six months post-harvest and offers special provisions for loans restructured due to natural calamities.
• Aadhar linkage is mandatory for availing these benefits.

Question:

1 What is the base interest rate for short-term agricultural loans under the Modified Interest Subvention Scheme (MISS) for the financial year 2024-25?

• A) 5%
• B) 6%
• C) 7%
• D) 8%

Answer: C) 7% base interest rate for short-term agricultural loans under the Modified Interest Subvention Scheme (MISS) for the financial year 2024-25.