New Delhi, March 11 -- Modified Interest Subvention Scheme (MISS) is a central sector scheme by the Government of India which is fully funded for giving concessional short term credit to the farmers. Launched in the 2006- 07 fiscal year, the scheme is designed to provide cheap credit to the farmers engaged in agriculture and allied activities.

For banks: The government offers an interest subvention of 2% to banks, which has been reduced to 1.5% for the financial years 2022-23 and 2023-24.

For farmers: Farmers can avail short-term crop loans up to Rs.3 lakh at a subsidised interest rate of 7% per annum. An additional incentive of 3% is provided for prompt repayment, effectively reducing the interest rate to 4% per annum.

The scheme cove...