Question 1

Under the Kisan Credit Card (KCC) scheme, the short-term credit limit for the first year is determined based on:

Credit score of the farmer.Market value of the crop.Value of the land owned.Scale of Finance for the crop + Insurance + 10% for post-harvest/household + 20% for repairs/maintenance.

View Explanation

The KCC limit is scientific: It considers the Scale of Finance (fixed by District Level Technical Committee) multiplied by area, plus a 10% margin for household expenses and 20% for farm asset maintenance.

Question 2

Farmers who repay their short-term crop loans promptly (up to ?3 Lakh) get an additional interest subvention of:

4%3%1%2%

View Explanation

The standard interest subvention is 2%, making the effective rate 7%. Prompt repayment gets an additional 3% subvention, bringing the effective interest rate down to 4%.

Question 3

The validity of the Kisan Credit Card (KCC) limit is generally for:

1 Year3 Years5 Years10 Years

View Explanation

The KCC limit is sanctioned for a period of 5 years, subject to an annual review. The cardholder can draw funds within this limit as per their cropping pattern and requirements.

JAIIB Quiz

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