Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q10: Which of the following loans are eligible for classification as "Farm Credit" under the Agriculture category?

1. Loans for pre/post-harvest activities (spraying, grading).
2. Loans to distressed farmers indebted to non-institutional lenders.
3. Loans for installation of stand-alone solar agriculture pumps.
4. Loans to Small and Marginal Farmers for purchase of land for agricultural purposes.
A
1 and 3 only
B
2 and 4 only
C
1, 2 and 3 only
D
All of the above
✅ Correct Answer: D
All these activities are explicitly included under "Farm Credit" in Priority Sector Lending.
This includes loans for solar pumps and purchasing land for agricultural use by small farmers.