Question
What is the total interest subvention provided to
farmers under the Modified Interest Subvention Scheme (MISS) including Prompt Repayment Incentive?Solution
Under MISS , farmers receive a 1.5% interest subvention plus a 3% Prompt Repayment Incentive (PRI) . This totals 4.5% benefit , reducing the effective interest on KCC loans from 7% to 4% , meaning the subvention provided by the government is 6% in total (to reduce burden and encourage timely repayment).
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