A bank finances an agriculturist to buy a tractor. The loan is secured by

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Hypothecation of the tractor
B	Mortgage of the tractor
C	Pledge of the tractor
D	Assignment of the tractor

Explanation:

Detailed explanation-1: -Correct answer is a) Hypothecation if bank finances an agriculturist to buy a tractor.

Detailed explanation-2: -Tractor loans fall within the category of agriculture loans. This loan can be applied by an individual or group of individuals. The repayment can be done by the entire group of individuals or by a single individual within the group. This loan follows the equated monthly installment (EMI) schedule.

Detailed explanation-3: -State Bank of India Agricultural Loans SBI also offers agriculture loans for mechanisation of farms. The funds from these loans can be used to purchase combine harvesters, tractors and install drip irrigation. Moreover, loans for activities related to dairy, poultry or fisheries can also be availed.

There is 1 question to complete.