Cabinet OKs continuation of farmer welfare interest subvention scheme
This story was originally published at 15:45 IST on 28 May 2025
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--Cabinet OKs farmer welfare interest subvention scheme
NEW DELHI – The Union Cabinet Wednesday approved the continuation of the interest subvention component under the Modified Interest Subvention Scheme for 2025-26 (Apr-Mar). The scheme provides short-term credit to farmers at affordable interest rates through Kisan Credit Cards.
The scheme allows farmers to take loans of up to INR 300,000 at a subsidised interest rate of 7%. Aditionally, a 3% incentive is provided to farmers for timely loan replayment, reducing effective interest rate to 4% for the loan. Currently, there are over 77.5 million such accounts in the country, the government said.
The scheme has led to increased institutional credit disbursement and overall agricultural credit flow, the government said, adding that this decision will support small and marginal farmers, enhance agricultural productivity, and ensure financial inclusion. End
Reported by Pallavi Singhal
Edited by Tanima Banerjee
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