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A third-party assessment by the Institute for Social and Economic Change (ISEC), Bengaluru found that every ?1 invested under the Kisan Credit Card–Modified Interest Subvention Scheme (KCC-MISS) generates ?2.30 in net value addition to the agriculture and allied sectors.

About the Modified Interest Subvention Scheme (MISS)

The Modified Interest Subvention Scheme (MISS) is a Central Sector Scheme, launched in 2006–07, to ensure the availability of affordable short-term institutional credit to farmers through the Kisan Credit Card (KCC).

• Aim: To provide timely and affordable short-term crop loans and reduce farmers' dependence on informal sources of credit.
• Implementing Agencies:Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD).
• Implementing Institutions: Public Sector Banks, Regional Rural Banks (RRBs), Cooperative Banks, and eligible Private Sector Banks operating in rural and semi-urban areas.

Key Features

• Farmers can avail short-term crop loans up to ?3 lakh through KCC at a 7% interest rate, with the Government providing 1.5% interest subvention to eligible lending institutions.
• Farmers who repay loans on time receive a Prompt Repayment Incentive (PRI) of up to 3%, reducing the effective interest rate to 4%.
• For loans taken exclusively for animal husbandry and fisheries, the interest subvention benefit is available up to ?2 lakh.

Significance

The scheme improves farmers' access to affordable institutional credit, encourages timely repayment, reduces reliance on informal moneylenders, and promotes investment in agriculture and allied activities, thereby supporting agricultural productivity and rural income growth.