The Kisan Credit Card (KCC) scheme is a government initiative designed to provide farmers with straightforward access to short-term credit. This financial support is primarily aimed at fulfilling various agricultural needs, such as purchasing essential inputs like seeds, fertilizers, and pesticides. Moreover, it helps cover expenses related to cultivation and allied activities, including fisheries and dairy farming. The primary goal of the KCC scheme is to reduce farmers' reliance on informal loans, which often come with exorbitant interest rates.
Recently, the government increased the KCC loan limit from ₹3 lakh to ₹5 lakh. This significant enhancement is expected to benefit approximately 77 million farmers, including those engaged in fisheries and dairy farming. The revised limit facilitates better financial inclusion for rural farmers, allowing them to manage their operations without facing financial constraints, especially during critical farming seasons.
The decision to revise the loan limit under the KCC has several key objectives:
The Kisan Credit Card (KCC) scheme plays a pivotal role in empowering farmers by providing them access to necessary financial resources. The recent increase in the loan limit signifies a commitment to enhancing the financial stability of those involved in agriculture and allied sectors, ensuring they can thrive in their endeavors.
Q1. What is the purpose of the Kisan Credit Card Scheme?
Answer: The Kisan Credit Card Scheme aims to provide farmers with easy access to short-term credit for agricultural needs, reducing their dependence on high-interest loans.
Q2. How much is the revised loan limit under the KCC?
Answer: The revised loan limit under the KCC has been increased from ₹3 lakh to ₹5 lakh, benefiting millions of farmers across India.
Q3. Who benefits from the Kisan Credit Card Scheme?
Answer: The scheme primarily benefits farmers involved in agriculture, fisheries, and dairy farming, providing them with crucial financial support.
Q4. What are the key objectives of the KCC scheme?
Answer: The key objectives include improving access to credit, reducing dependency on informal loans, strengthening financial resilience, and encouraging income diversification.
Q5. How does the KCC scheme support financial inclusion?
Answer: The KCC scheme enhances financial inclusion by providing farmers with institutional credit at subsidized rates, enabling better financial management and stability.
Question 1: What is the primary goal of the Kisan Credit Card scheme?
A) To provide long-term loans for agriculture
B) To give farmers access to short-term credit
C) To reduce government expenditures
D) To promote urban agriculture
Correct Answer: B
Question 2: What is the new loan limit under the Kisan Credit Card scheme?
A) ₹2 lakh
B) ₹3 lakh
C) ₹4 lakh
D) ₹5 lakh
Correct Answer: D
Question 3: Which of the following sectors does the KCC scheme support?
A) Only traditional agriculture
B) Only fishery
C) Fisheries and dairy farming
D) None of the above
Correct Answer: C
Question 4: What is one objective of increasing the KCC loan limit?
A) To limit farmers' access to loans
B) To encourage informal borrowing
C) To strengthen financial resilience of farmers
D) To reduce agricultural productivity
Correct Answer: C
Question 5: How does the KCC scheme reduce dependency on informal loans?
A) By offering loans only for dairy farming
B) By increasing interest rates on loans
C) By providing institutional credit at subsidized rates
D) By limiting the number of beneficiaries
Correct Answer: C
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