The Reserve Bank of India (RBI) has announced that the Modified Interest Subsidy Scheme (MISS) will continue for the financial year 2024-25, providing relief to farmers who take loans for crop cultivation through Kisan Credit Cards.
Under the MISS, the government pays a part of the interest on loans taken by farmers. The scheme will continue for another year, reducing the interest burden on farmers.
RBI will provide interest concession on loans up to Rs. 3 lakh for various agricultural activities. The government will pay 1.5% interest, allowing farmers to take loans at a 5.5% annual interest rate.
Additionally, if farmers repay their loans on time or early, the government will offer an additional 3% interest subsidy. This means that farmers could be charged only 4% interest on new loans taken the following year (2024-25), providing an incentive for prompt repayment.
It’s important to note that the maximum loan limit for farmers engaged in agricultural activities such as animal husbandry, dairy farming, fish farming, and beekeeping is Rs. 2 lakhs, while other farmers can apply for loans up to Rs. 3 lakhs each.