Q. With reference to the Modified Interest Subvention Scheme (MISS), consider the following statements:
1.It was introduced in 2006–07 to provide affordable credit to farmers for agriculture and allied activities.
2.The scheme offers a 3% interest subvention for prompt repayment, reducing the effective interest rate to 4%.
Which of the statements given above is/are correct?
Answer: C
Notes:
Explanation: Both Statements are correct
Statement 1 is correct: Modified Interest Subvention Scheme (MISS) is a Central Sector Scheme launched in 2006–07 by the Government of India.
Statement 2 is correct: Modified Interest Subvention Scheme (MISS) provoide short-term credit at an affordable rate to farmers through Kisan Credit Card (KCC). Interest subvention – For Banks the interest subsidy is initially 2%, but later revised to 1.5%. For farmers short-term loans up to Rs 3 lakh at a 7% annual interest. An additional 3% incentive is given for prompt repayment, lowering effective rate to 4%.
Source: TH
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