What facilities are provided by the banks under the Kisan Credit Card ?
1. Loan to purchase farm inputs such as seeds and fertilizers
2. Loan for consumption and contingency needs
3. Personal accident insurance
Select the correct option from the codes given below:

Answer: [D] 1, 2 & 3

The Kisan Credit Card  scheme is implemented by public sector commercial banks, RRBs and cooperative banks. It was launched to provides short term loans in the form of production credit. However, later its scope was extended to term loans for agriculture and allied activities and reasonable component for consumption loan. Thus, currently this scheme provides:

  • Production credit
  • Working capital requirements for allied activities
  • Ancillary credit requirements related to crop production
  • Contingent needs and
  • Accidental insurance of KCC borrowers.

Crop loans disbursed under KCC scheme for notified crops are covered under National Crop Insurance scheme. The purpose of the scheme

is to protect the interest of farmers against crop loss caused by natural calamities, pest attacks etc.

This question is a part of GKToday's Integrated IAS General Studies Module