BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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

Which of the following means of lending is considered as a priority sector loan?

A	Loan for purchase of gold for marriage of daughter
B	Car loan
C	Housing loan
D	Loan for purchase of tractor

Explanation:

Detailed explanation-1: -The correct answer is Agriculture. The priority sector lending by commercial banks in India is to agriculture, small-scale industries, and the weaker sector of the population. Targeted financing for the areas in an economy that are lagging behind the normal pace of development is called priority sector lending.

Detailed explanation-2: -Loans to individuals for educational purposes, including vocational courses, not exceeding Rs 20 lakh are considered eligible for priority sector classification. Loans currently classified as a priority sector would continue till maturity.

Detailed explanation-3: -Priority Sector Lending is lending to the weaker sections of society like women, small farmers, small shopkeepers and SC & ST community.

There is 1 question to complete.