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KCC-Modified Interest Subvention Scheme
A third-party assessment currently reports that the Kisan Credit Card–Modified Interest Subvention Scheme (KCC-MISS) improves agricultural productivity, income diversification, and access to affordable credit. The scheme operates through banks under the Kisan Credit Card (KCC) framework and provides interest support for short-term crop loans.
Kisan Credit Card–Modified Interest Subvention Scheme (KCC-MISS):
| Dimension | Key Details |
|---|---|
| Nodal ministry | The scheme is governed by the Ministry of Agriculture & Farmers Welfare. |
| Coverage under KCC | It applies to short-term crop loans under KCC, and KCC also covers animal husbandry, dairy, and fisheries. |
| Interest subvention to banks | It provides for 1.5% interest subvention to banks on short-term crop loans up to ₹3 lakh under KCC. |
| Interest rate to farmers | Farmers receive loans at 7% interest. |
| Prompt Repayment Incentive (PRI) | It provides for a 3% Prompt Repayment Incentive (PRI) on timely repayment, reducing the effective interest rate to 4%. |
| Implementation mechanism | It is delivered through banks under the Kisan Credit Card (KCC) framework. |
| Focus | It promotes affordable credit, timely input use, and agricultural productivity. |
| Recent assessment finding | A third-party assessment has found that KCC-MISS improves agricultural productivity, income diversification, and access to affordable credit. |