KCC Scheme Simplified Quiz

Explore key aspects of the Kisan Credit Card (KCC) scheme in agriculture with straightforward questions. This quiz covers features, benefits, eligibility, and usage examples to enhance your understanding of KCC.

1. Purpose of KCC

   What is the primary purpose of the Kisan Credit Card (KCC) scheme in India?

   1. To offer insurance against crop failure due to natural calamities
   2. To regulate the price of agricultural produce in markets
   3. To provide farmers with timely access to affordable credit for agricultural needs
   4. To supply agricultural machinery to small farmers

   Explanation: The main aim of the KCC scheme is to ensure farmers easily access funds for crop production and related activities. Insurance is sometimes bundled but is not the primary purpose. Supplying machinery and price regulation are not direct objectives of KCC.

2. Eligibility Criteria

   Who among the following is generally eligible to apply for a Kisan Credit Card?

   1. A practicing farmer involved in crop production
   2. A school teacher in an urban city
   3. A person operating an e-commerce store
   4. A retired government official

   Explanation: Only practicing farmers, including tenant farmers and sharecroppers, can apply for KCC. E-commerce operators, school teachers, and retired officials do not engage in agriculture, making them ineligible for this scheme.

3. Loan Limit Example

   If a farmer is sanctioned a KCC limit, what can it typically be used for?

   1. Booking international holidays
   2. Purchasing seeds, fertilizers, and paying for agricultural labor
   3. Buying luxury cars for personal use
   4. Investing in real estate in cities

   Explanation: KCC loans are intended for agricultural expenses like seeds, fertilizers, and labor costs. Purchasing cars, real estate, or booking holidays are unrelated to agriculture and are not permitted uses under this scheme.

4. Interest Rate Benefit

   Which is a benefit offered by the Kisan Credit Card scheme to farmers regarding interest rates?

   1. Lower interest rates compared to standard personal loans
   2. Interest rates that increase every year regardless of repayment
   3. No interest charged under any circumstances
   4. Double taxation of loan amounts

   Explanation: KCC loans generally offer lower interest rates as compared to standard personal loans to promote agricultural activities. The scheme does not involve double taxation or zero-interest loans, and interest rates do not arbitrarily increase each year.

5. Validity and Tenure

   How long is a typical Kisan Credit Card usually valid before renewal is needed?

   1. Only 1 month
   2. Up to 5 years
   3. Up to 20 years
   4. Indefinitely without any renewal

   Explanation: Most KCCs are valid for up to 5 years, after which they can be renewed. A 1-month period is too short, indefinite validity is not offered, and 20 years exceeds usual guidelines.