Overview

• Union Cabinet approved the continuation of the Modified Interest Subvention Scheme for the 2025-26 fiscal year and sanctioned the required funds.
• Under the scheme, farmers can borrow up to Rs3 lakh at a 7% annual rate with a 1.5% subvention for lenders and a 3% prompt-repayment incentive reducing effective interest to 4%.
• No changes were made to the scheme’s structure and the interest benefit for animal husbandry and fisheries loans remains capped at Rs2 lakh.
• Institutional credit disbursed through KCCs rose from Rs4.26 lakh crore in 2014 to Rs10.05 lakh crore by December 2024, while total agricultural credit climbed to Rs25.49 lakh crore in FY24.
• The Kisan Rin Portal, launched in August 2023, continues to streamline loan processing and enhance transparency in agricultural credit.