Banking · Agricultural Schemes
Under the KCC guidelines, when a bank sanctions both the short-term (ST) crop loan and long-term (LT) investment component for a farmer, how is the revised maximum eligible limit structured?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The ST and LT components are combined under a single revolving credit with no distinct sub-limits
- 2The total KCC limit is the sum of the ST limit and the LT component, with separate sub-limits maintained for monitoring✓
- 3The LT component replaces the ST crop loan limit entirely
- 4The LT component cannot exceed 10% of the existing ST crop limit
Correct answer
The total KCC limit is the sum of the ST limit and the LT component, with separate sub-limits maintained for monitoring
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