BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Loan disbursed by an NBFC-MFI to a borrower with a rural household annual income should not exceed how much amount?
A
Rs. 1, 00, 000
B
Rs. 2, 00, 000
C
Rs. 4, 00, 000
D
Rs. 3, 00, 000
Explanation: 

Detailed explanation-1: -The loans disbursed by an MFI should be to a borrower whose rural household annual income does not exceed Rs. 1, 00, 000 (proposed to increase to Rs 1, 25, 000) or urban and semi-urban household income does not exceed Rs. 1, 60, 000 (proposed to increase to Rs 2, 00, 000).

Detailed explanation-2: -3.1 A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to ₹3, 00, 000.

Detailed explanation-3: -Ans. All collateral-free loans to individual/s belonging to low-income households, i.e., households having annual income up to ₹3, 00, 000 are treated as microfinance loans.

Detailed explanation-4: -The RBI has also revised the criteria for NBFCs who do not qualify as NBFC-MFIs to extend microfinance loans up to 25 per cent of their total assets from 10 per cent earlier.

Detailed explanation-5: -As per extant guidelines, each NBFC-MFI is required to maintain not less than 85 per cent of its net assets as ‘qualifying assets’.

There is 1 question to complete.