1. What is the main objective of the Kisan Credit Card (KCC) scheme?
A) Providing housing loans to farmers
B) Offering crop insurance to farmers
C) Providing timely and adequate credit to farmers
D) Distributing free seeds to farmers
Answer: C) Providing timely and adequate credit to farmers
2. Who implements the Kisan Credit Card (KCC) scheme in India?
A) Reserve Bank of India (RBI)
B) Ministry of Finance
C) National Bank for Agriculture and Rural Development (NABARD)
D) Ministry of Agriculture and Farmers Welfare
Answer: C) National Bank for Agriculture and Rural Development (NABARD)
3. What is the validity period of a Kisan Credit Card?
A) 1 year
B) 3 years
C) 5 years
D) 10 years
Answer: C) 5 years
4. What types of activities are covered under the Kisan Credit Card (KCC) scheme?
A) Only crop loans
B) Both crop loans and term loans for agriculture and allied activities
C) Only livestock loans
D) Only agricultural equipment loans
Answer: B) Both crop loans and term loans for agriculture and allied activities
5. What is the interest rate for Kisan Credit Card (KCC) loans?
A) 0% interest
B) Fixed interest rate of 10%
C) Interest rates vary as per the bank’s guidelines
D) 15% interest for all loans
Answer: C) Interest rates vary as per the bank’s guidelines
6. Who is eligible to apply for a Kisan Credit Card (KCC)?
A) Only small-scale farmers
B) Only large-scale farmers
C) All farmers – small, marginal, and large-scale
D) Only farmers with no land holdings
Answer: C) All farmers – small, marginal, and large-scale
7. What is the primary purpose of providing a Kisan Credit Card to farmers?
A) To encourage farmers to take exotic vacations
B) To enhance the social status of farmers
C) To provide a convenient and flexible source of credit for agricultural needs
D) To promote urbanization among rural communities
Answer: C) To provide a convenient and flexible source of credit for agricultural needs
8. How is the credit limit determined for farmers under the Kisan Credit Card (KCC) scheme?
A) It is a fixed amount for all farmers
B) Based on the size of the farmer’s family
C) It is linked to the farmer’s agricultural income and cropping pattern
D) Determined by the farmer’s education level
Answer: C) It is linked to the farmer’s agricultural income and cropping pattern
9. In addition to crop production, what allied activities are covered under the Kisan Credit Card (KCC) scheme?
A) Only poultry farming
B) Only fishery activities
C) Both poultry farming and fishery activities
D) Only horticulture activities
Answer: C) Both poultry farming and fishery activities
10. What is the grace period for repayment of Kisan Credit Card (KCC) loans?
A) No grace period
B) 15 days
C) 30 days
D) 90 days
Answer: C) 30 days
11. How often can a farmer renew or review their Kisan Credit Card (KCC) limit?
A) Every 2 years
B) Only once during the entire loan tenure
C) At the discretion of the bank
D) Only if the farmer changes their occupation
Answer: A) Every 2 years
12. What is the collateral requirement for Kisan Credit Card (KCC) loans?
A) Fixed assets like land or property
B) No collateral for loans up to a certain limit
C) Personal guarantee from a government official
D) Gold or other valuable assets
Answer: B) No collateral for loans up to a certain limit
13. How does the interest subsidy work for farmers with a Kisan Credit Card (KCC)?
A) Farmers receive a full interest waiver
B) The government directly pays the interest to the bank
C) Farmers receive a subsidy on the interest charged by the bank
D) Interest subsidy is not applicable to KCC loans
Answer: C) Farmers receive a subsidy on the interest charged by the bank
14. What role does the Kisan Credit Card (KCC) play in financial inclusion for farmers?
A) It restricts access to credit for farmers
B) It promotes financial literacy among farmers
C) It enables easy and timely access to formal credit institutions for farmers
D) It is only available to wealthy farmers
Answer: C) It enables easy and timely access to formal credit institutions for farmers
15. Which of the following is a feature of the Kisan Credit Card (KCC) that supports risk mitigation for farmers?
A) Crop insurance bundled with the credit facility
B) Requirement for farmers to invest in high-risk ventures
C) No provision for insurance coverage
D) Dependence solely on government assistance in case of crop loss
Answer: A) Crop insurance bundled with the credit facility
16. How are Kisan Credit Cards (KCCs) issued?
A) Only through online application
B) Issued by the State Government officials
C) Issued by banks with the support of the government
D) Available only through private financial institutions
Answer: C) Issued by banks with the support of the government