Kisan Credit Card Know-how Quiz

This quiz explores the basics of the Kisan Credit Card (KCC), a key agricultural credit instrument that supports farmers in accessing funds for their farming needs. Assess your understanding of how KCC works, its benefits, eligibility, and related processes.

1. Purpose of the Kisan Credit Card

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

   1. To set minimum prices for farm produce
   2. To offer insurance against natural disasters
   3. To provide easy and timely credit to farmers for agricultural needs
   4. To issue land ownership documents to farmers

   Explanation: The main goal of the KCC scheme is to make credit more accessible and flexible for farmers' cultivation and related expenses. It is not meant for issuing land documents, setting crop prices, or offering disaster insurance, although related schemes may exist.

2. Eligibility Criteria

   Which of the following is generally eligible to apply for the Kisan Credit Card?

   1. A factory worker
   2. A farmer with cultivable land
   3. A retired school principal
   4. A city shopkeeper

   Explanation: Farmers who own or lease cultivable land are eligible as the KCC is designed to support agricultural credit. Shopkeepers, retired principals, and factory workers typically do not qualify unless they are also engaged in farming.

3. Key Benefit of KCC

   What is one significant benefit of using a Kisan Credit Card for a farmer?

   1. Ability to withdraw funds flexibly for agricultural expenses
   2. Permanent government subsidy on all purchases
   3. No need to repay borrowed money
   4. Guaranteed profit from farm produce

   Explanation: KCC allows farmers to withdraw money as needed for farm operations, ensuring flexibility. It does not guarantee profits, forgive debts, or offer permanent subsidies, which are not standard features of the scheme.

4. Repayment Period of KCC Loan

   Which option best describes the typical repayment period for a loan availed through the Kisan Credit Card?

   1. Repayment not required at all
   2. Always fixed at 15 years
   3. Only repayable after ten harvests
   4. Based on the crop season and type of loan availed

   Explanation: Repayment is usually aligned with the crop cycle and varies by crop and nature of the loan. It is not a fixed 15-year term, there is no 'ten harvests' rule, and loans must be repaid.

5. Interest Rate Benefit

   Which advantage related to interest rates do many Kisan Credit Card holders receive when they repay loans promptly?

   1. No change in interest, regardless of repayment
   2. Double the standard interest charge
   3. Concessional rates or interest subvention
   4. Mandatory late fees added

   Explanation: Timely repayment often entitles KCC holders to discounted interest or subvention as an incentive. Higher interest and mandatory late fees are penalties for late repayment, not benefits, and no change would mean no incentive for punctual payments.