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 expense 

5. Construction of family house and setting up of village cold storage facility. 

Select the correct answer using the code given below: 

(a) 1, 2 and 5 only 

(b) 1, 3 and 4 only 

(c) 2, 3, 4 and 5 only 

(d) 1, 2, 3 4 and 5 

Answer: b

Explanation:

The KCC Scheme was introduced with the objective of providing adequate and timely credit to the farmers for their agricultural operations. The Government of India provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, thus making the credit available at a very subsidized rate of 4% per annum. 

The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with the flexible and simplified procedures to the farmers for their cultivation and other needs as indicated below :

1. To meet the short term credit requirements for the cultivation of crops;
2. Post-harvest expenses;
3. Produce marketing loan;
4. Consumption requirements of farmer household;
5. Working capital for maintenance of farm assets and activities allied to agriculture;
6. Investment credit requirement for agriculture and allied activities

Hence statement 1, 3 and 4 are only correct.

Read: Solved Economy PYQs With Explanation 2020 UPSC Prelims