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:

The correct answer is B, 1, 3 and 4 only. The short-term part of the Kisan Credit Card covers working capital for farm assets, household consumption needs and post-harvest expenses.

The Kisan Credit Card was launched in 1998 on the model prepared by NABARD to give farmers timely, flexible bank credit. Its short-term limit meets the cost of raising crops, post-harvest expenses, marketing loans for produce, consumption needs of the farm household and working capital for maintaining farm assets and allied activities such as dairy and fisheries. Investment credit for buying machinery or developing land is a separate, longer-term component.

A, C and D are wrong because they include item 2 or item 5. Combine harvesters, tractors and mini trucks are capital assets financed by term loans, not short-term crop credit. Building a family house is not a farming purpose at all, and a village cold storage is an infrastructure investment, not short-term support.

Exam tip: KCC short-term = crop + post-harvest + consumption + farm asset upkeep; machinery = term loan.