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JAIIB PPB Unit 37 — Agricultural Finance: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 2 November 2026 · Paper 2 of the November 2026 cycle (22 November 2026)

This page is a free slice of our JAIIB PPB question bank for Unit 37 — Agricultural Finance (Module B — Functions of Banks). The Mock Centre holds 41 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

PPB · Module B41 MCQs in the Mock Centre5 free belowPaper on 22 November 2026

Key facts examiners test from this unit

  1. Short-term ≤18 months (crop loans, KCC, agri gold loans); medium/long-term >36 months; direct vs indirect finance (fertiliser distribution, REC pump-sets).
  2. Crop loan: scale of finance (DLTC, per acre per crop), ~10% margin; eligible — agriculturists, tenants, share-croppers.
  3. Marginal ≤1 ha; small >1–2 ha; KCC eligibility includes oral lessees, SHGs/JLGs; separate KCC for animal husbandry & fisheries.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
SHORT-TERM agricultural loans are repayable within:
Why (b): SHORT-TERM agricultural loans are repayable within 18 MONTHS — the production-credit boundary.
Question 2 of 5
Crop loans may be granted to:
Why (b): Crop loans go to those who cultivate — owner-cultivators, tenant farmers, oral lessees and share-croppers, and their SHGs or JLGs — not only to landowners.
Question 3 of 5
The main objective of the KCC scheme is:
Why (b): KCC aims to give farmers adequate, timely credit through a single window for cultivation, post-harvest, consumption, working-capital and allied needs.
Question 4 of 5
Under the FARM-MECHANISATION scheme, loans finance:
Why (c): Under the FARM-MECHANISATION scheme, loans finance the PURCHASE OF FARM EQUIPMENT — tractors, tillers, harvesters.
Question 5 of 5
The short-term KCC component operates as:
Why (b): The short-term KCC component operates as a REVOLVING CASH CREDIT — draw, repay and redraw through ATM, PoS and cheque.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
18 months36 monthsShort-term ceiling vs long-term threshold
10% add-on20% add-onConsumption/post-harvest vs farm-asset repairs
Practise all 41 questions on Unit 37. The free demo opens a slice of every subject with the same explanations; the PPB Online-only pass unlocks all 3,200+ PPB questions, the full and module mocks, Smart Revision and the Readiness Score for 18 months (₹1,299). Not sure where you stand? Sit the free 120-question mock first (all four papers, questions drawn from pages like this one, real exam screen).
Take the free mock Open the free demo

← Unit 36: Priority Sector Advances · Unit 38: Finance to MFIs & Co-Lending with NBFCs → · All PPB units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of November 2026; verify from official sources before relying on them in practice.