Explanation – The primary objective of the Modified Interest Subvention Scheme is to offer short-term agricultural loans to farmers at subsidized interest rates. This is done to support their working capital requirements and allied activities such as animal husbandry, dairy, fisheries, and beekeeping. The scheme provides an interest subvention to lending institutions so that farmers can avail loans at a concessional interest rate, thereby reducing their financial burden and promoting agricultural productivity.

Source: AIR