Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
Explanation
The Kisan Credit Card (KCC) scheme, administered through NABARD and commercial banks, provides flexible institutional credit for farmers with a distinct bifurcation between short-term revolving credit and term loans:
– Covered under Short-term Credit Support:
– Crop cultivation expenses
– 4. Post-harvest expenses
– 3. Consumption requirements of farmer households
– 1. Working capital for maintenance of farm assets and allied agricultural activities (dairy, fishery, etc.)
– Excluded from Short-term Credit Support (Classified as Long-Term Investment Credit):
– 2. Purchase of tractors, harvesters, and trucks: These require medium- to long-term capital loans, not short-term revolving crop credit.
– 5. House construction and cold storage facilities: Village cold storage units and residential construction are capital-intensive fixed investments financed under separate term credit schemes.
Therefore, short-term credit covers 1, 3, and 4 — Option B.