Under the Kisan Credit Card (KCC) scheme, short-term credit support is provided to farmers for purposes that directly support agricultural activities and the farm household.
Statement 1 is correct. The KCC scheme provides working capital for the maintenance of farm assets, which includes things like irrigation, fertilizers, and labor costs.
Statement 2 is incorrect. The KCC scheme does not cover the purchase of capital-intensive assets such as combine harvesters, tractors, and mini trucks. These are typically financed through long-term loans, not short-term credit.
Statement 3 is correct. The KCC scheme provides credit for consumption requirements of the farm household, like daily needs and family expenditures.
Statement 4 is correct. The KCC scheme can also be used for post-harvest expenses, including costs for storage, transportation, and marketing of produce.
Statement 5 is incorrect. The construction of a family house and setting up of village cold storage facilities are not covered under the KCC scheme, as these are typically considered long-term capital expenditures.
The list of eligible activities for KCC are:
- To meet the short-term credit requirements for cultivation of crops
- Post-harvest expenses,
- Produce marketing loan
- Consumption requirements of farmer household.
- Working capital for maintenance of farm assets band activities allied to agriculture like dairy animals, inland fishery etc.
- Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals etc.
Hence, option B is the correct answer.
