- Union Cabinet approves continuation of Modified Interest Subvention Scheme for FY 2025-26, supporting farmers with subsidised crop loans.
- Scheme benefits available only for Kisan Credit Card loans linked with Aadhaar, making sure support reaches the right farmers.
- Government allocates Rs 15,642 crore with low interest rates and incentives for timely loan repayment.
If you are a farmer looking for financial help, the Modified Interest Subvention Scheme is continuing this fiscal year (2025-26), offering subsidised short-term crop loans under the Kisan Credit Card with benefits tied to Aadhaar. This scheme lowers your financial burden by providing loans at low interest rates and attractive incentives if you repay on time.
Who Can Apply and Loan Details Under Modified Interest Subvention Scheme
This scheme supports farmers involved in crop production as well as allied agricultural activities such as animal husbandry, beekeeping, and fisheries. To qualify and get the benefits, you need a Kisan Credit Card linked with your Aadhaar number. Connecting your account to Aadhaar is required for clarity and direct support.
Linking Aadhaar for Scheme Benefits
Farmers must link their Aadhaar number with their Kisan Credit Card loan accounts. Without this, you won’t be able to access the scheme benefits. This helps the government reach genuine farmers and makes the support process smoother.
Low Interest Rates and Repayment Incentives
Under this scheme, short-term crop loans up to Rs 3 lakhs come with a low interest rate of 7% per annum. If you’re involved only in allied agricultural activities, loans of up to Rs 2 lakhs qualify.
Repayment incentive: If you repay the loan within one year from when it was given, you get an extra 3% interest discount, lowering your interest rate to 4%. This encourages you to repay on time and reduces your overall cost.
Which Institutions Offer Interest Subvention
You can get benefits from the scheme if you take loans from these banks and institutions:
- Public Sector Banks
- Private Sector Banks, but only through their rural and semi-urban branches
- Small Finance Banks (SFBs)
- Computerised Primary Agriculture Cooperative Societies (PACS) linked to Scheduled Commercial Banks (SCBs) that lend farmers their own funds
Also Read – Kisan Credit Card Yojana 2025: Apply Now for Easy Loans!
Union Budget 2025-26 Allocation and Updates
The Government of India has set aside a good amount of Rs 15,642 crore for the Modified Interest Subvention Scheme for FY 2025-26, continuing financial support for farmers during the Kharif season and beyond.
Although the Union Finance Minister announced an increase in the loan limit under the scheme from Rs 3 lakhs to Rs 5 lakhs in the 2025-26 budget speech, the government has decided to keep the current Rs 3 lakh limit for crop loans and Rs 2 lakh for allied activities for now.
This scheme is an important support for farmers to manage their short-term credit needs in agriculture and allied fields with affordable interest rates and benefits for timely repayment.
| Key Feature | Details |
|---|---|
| Loan Limit for Crop Loans | Up to Rs 3 lakhs |
| Loan Limit for Allied Activities | Up to Rs 2 lakhs |
| Concessional Interest Rate | 7% per annum |
| Interest Rate after Prompt Repayment | 4% per annum |
| Loan Repayment Timeline | Within 1 year from loan disbursal |
| Government Allocation for 2025-26 | Rs 15,642 crore |
| Eligible Lending Institutions | Public Sector Banks, Private Banks (rural/semi-urban), Small Finance Banks, PACS linked to SCBs |
For more official information, visit the Ministry of Agriculture & Farmers Welfare website at https://agriwelfare.gov.in/en/FarmWelfare