The government has approved the continuation of the Modified Interest Subvention Scheme (MISS) for 2024-25, providing reduced interest rates on short-term crop and allied activity loans up to ₹3 lakh.
Key details include:
Lending Rate: 7%
Interest Subvention for Lending Institutions: 1.5%
Additional Timely Repayment Subvention: 3% per annum
Farmers repaying within a year will benefit from an effective interest rate of 4%. This scheme covers loans up to ₹3 lakh annually, with a maximum of ₹2 lakh for allied activities. Crop loan components are prioritized for subvention benefits.
This extension aims to alleviate financial pressures on farmers and support their agricultural and allied activities throughout the year.
