The Government approved the continuation of the interest subsidy scheme for farmers

Current Context: The Union Cabinet has approved the continuation of the Modified Interest Subvention Scheme (MISS) for FY 2025-26, ensuring affordable credit access for farmers.

Key Highlights:

• Approval Date: 28th May 2025.
• Loan Benefits: Farmers can avail short-term loans up to ₹3 lakh through Kisan Credit Card (KCC) at a 7% interest rate, with 1.5% interest subvention.
• Prompt Repayment Incentive (PRI): Farmers repaying loans on time get an additional 3% interest subsidy, reducing the effective interest rate to 4%.
• Sectoral Benefits: Loans for animal husbandry and fisheries receive interest benefits up to ₹2 lakh.
• Financial Allocation: The estimated cost of the scheme extension is ₹15,640 crore.

Question:

Q.1 Under the Modified Interest Subvention Scheme (MISS), what is the maximum short-term loan amount a farmer can avail through the Kisan Credit Card (KCC)?
a) ₹1 lakh
b) ₹2 lakh
c) ₹5 lakh
d) ₹3 lakh

Answer: d) Farmers can avail short-term credit up to ₹3 lakh under Modified Interest Subvention Scheme (MISS) through KCC at concessional interest rates.