Modified Interest Subvention Scheme (MISS)
The Modified Interest Subvention (MIS) is available for banks under certain eligible sub-limits of kisan Credit Card (KCC) upto an overall limit of Rs.3.00 lakhs.
Who are the Beneficiaries?
- Farmers, individuals/ Joint borrowers who are owner cultivator;
- Tenant farmers, oral lessees & share croppers;
- Self Help Groups (SHGs) or Joint Liability Group (JLG) of farmers including share croppers etc.
Is Aadhar linkage mandatory?
- It is mandatory to link all KCC accounts with Aadhar for availing benefits under MISS except the exclusion criteria for the applicable States as notified by GoI from time to time.
- Farmers engaged in agriculture and allied activities like Animal Husbandry, Dairy, Fisheries, and Bee keeping etc. under the scheme, the lending institutions to make Aadhar linkage mandatory for availing short term loan for such activities.
Loan Limit
The overall limits for KCC loans are fixed based on the following sub-limits are eligible under the MISS subject to the maximum eligible sub-limits per farmer: –
- Short term credit requirements for cultivation of crops;
- Post-harvest expenses;
- Working Capital for activities allied to agriculture viz., animal husbandry, dairy, fisheries, Poultry, other Ruminants, Mushroom, Bee keeping and Sericulture etc.
- Produce marketing loan; Financing against e-NWR receipts;
Quantum of Eligible amount:
S. No Eligible Sub-Limit Maximum Limit 1. For cultivation of crops & Post harvest expenses Rs.3.00 lakhs 2. For allied activities related to Animal husbandry, Dairy, Fisheries, Lac cultivation, Mulberry cultivation, Sericulture and Bee keeping etc. Rs.2.00 lakhs
IS & PRI
- The Interest Subvention (IS) and Prompt Repayment Incentive (PRI) amounts are to be calculated on the loan amount from the date of disbursement/withdrawal up to the date of actual repayment of the loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier, subject to a maximum period of one year.
- The PRI benefits would accrue to only those farmers, who repay their eligible loans on time.
- The benefit of Modified Interest Subvention Scheme (MISS) are available to banks only on their own funds involved for extending credit support up to Rs.3 lakh at 7% interest per annum.
- In order to discourage distress sale of produce by Small and Marginal farmers (SF/MF) having Kisan Credit Card, the benefits of IS is available for a period of up to six months, post the harvest of the crop against Negotiable Warehouse Receipts issued on the produce stored in warehouses accredited with Warehousing Development Regulatory Authority.
- In order to provide relief to farmers affected by natural calamities, IS may be available to banks for the first year on restructured amount of crop loans. Such restructured loans will attract normal rate of interest from the second year onwards as per the extant policy laid down by RBI.
Eligible lending institutions
- Public Sector Banks (PSBs),
- Private Sector Scheduled commercial Banks,
- Small Finance Banks (SFBs),
- Computerized Primary Agricultural Credit Societies (PACS) ceded with Scheduled Commercial Banks (SCBs),
- Regional Rural Banks (RRBs)
- Rural Cooperative Banks (RCBs) viz. State Cooperative Banks & District Central Cooperative Banks (DCCBs)
Read also…
KISAN CREDIT CARD- OBJECTIVES & REVISED FEATURES