Q76.
Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks. 3. Consumption requirements of farm households 4. Post-harvest expense 5. Construction of family house and setting up of village cold storage facility. Select the correct answer using the code given below:
Answer
B
Explanation
Kisan Credit Card Scheme (KCC) • It is a type of loan given to farmers • The scheme was introduced in 1998 • It is not a credit card for farmers. Hence statements 2 and 5 are not correct. • It is like an overdraft scheme for farmers- One can overdraw upto a limit. And interest has to be paid on the amount so overdrawn. • Also, the limit of overdraft is fixed on the basis of the value of land, though the value of crop may also be considered. The Features of This Scheme • Farmers need money before sowing. For example, to buy seeds, fertilisers etc. • In this scheme, they have to pay back the loan amount/ overdraft after the harvest. • Also, interest charged is concessional- 4,5,6%- But if they fail to payback post the harvest, then the interest charged increases to 13-14%- The subsidy component is, thus, removed. • The scheme has been very successful- More than 10 crore KCCs have already been issued. • Commercial, cooperative, Regional Rural Banks- All types of