Overview

The Agriculture Interest Subvention Scheme (ISS) administered by NABARD channels concessional credit to the agricultural sector. Under the scheme, short‑term crop loans are offered at a nominal interest rate, and a prompt‑repayment incentive further reduces the effective cost of borrowing. In parallel, NABARD extends refinance facilities to cooperative banks and Primary Agricultural Credit Societies (PACS) to mobilise funds for rural infrastructure projects such as irrigation, storage and market yards.

Mechanism

Eligible borrowers approach their nearest PACS or cooperative bank, which forwards the application to NABARD for sanction. Upon approval, the lending institution disburses the loan directly to the farmer. The interest subvention is credited by NABARD, ensuring that the borrower pays the subsidised rate.

Scope

The scheme is a central initiative applicable across all states, covering all notified crops and extending to tenant farmers and oral lessees who cultivate the land.

1. Submit a loan application to the nearest Primary Agricultural Credit Society (PACS) or cooperative bank.
2. Attach land ownership/tenancy documents, crop plan and identity proof.
3. The PACS forwards the application to NABARD‑approved refinance channel.
4. Upon sanction, credit is disbursed directly to the farmer’s bank account.