Q. Consider the following statements about the Kisan Credit Card (KCC): - It is like a plastic credit card and can be used at banks, ATMs and Points of Sale
- It aims to provide interest-free loans to small and marginal farmers in the country
Which of the above statements is/are correct?
Answer:
1 Only
Notes: Kisan Credit Card scheme was introduced in 1998 all over the country. The prime motive of this credit scheme is to enable farmers in having quick and timely access to affordable credit. The Kisan Credit Card (KCC) is issued to farmers on the basis of their holdings so that farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs. Loans under the KCC are offered at generally 7% for amounts under Rs. 3 lakh but may vary depending on banks. In addition, the central government offers interest subsidies that can go up to 3 % depending on the credit history of the farmer. The amount and interest rate on loans above Rs. 3 lakhs is decided by the bank.