BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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granted to distressed person (other than farmers) to pre-pay their debt to non-institutional lenders against appropriate collateral or group security,
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not exceeding 50.000 per borrower provided by banks
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Both A and B
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None of these
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Detailed explanation-1: -microcredit, also called microbanking or microfinance, a means of extending credit, usually in the form of small loans with no collateral, to nontraditional borrowers such as the poor in rural or undeveloped areas.
Detailed explanation-2: -Microcredit is used to describe small loans granted to low income individuals that are excluded from the traditional banking system. It is part of the larger microfinance industry, which provides not only credit, but also savings, insurance, and other basic financial services to the poor.
Detailed explanation-3: -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. For this purpose, the household shall mean an individual family unit, i.e., husband, wife and their unmarried children.
Detailed explanation-4: -A loan is a non-revolving credit product, so it can’t be used like a credit card. Because it is a lump sum for one-time use, the credit advanced can’t be used over and over again.