RBI Committee suggested to increase the collateral-free loans for MSMEs from Rs 10 lakh to ..... .

2019

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

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

RBI Committee suggested to increase the collateral-free loans for MSMEs from Rs 10 lakh to ____ .

A	Rs 18 lakh
B	Rs 20 lakh
C	Rs 21 lakh
D	Rs 22 lakh

Explanation:

Detailed explanation-1: -A Reserve Bank of India (RBI) expert committee on micro, small and medium enterprises (MSMEs) has recommended doubling the cap on collateral-free loans to Rs 20 lakh from the current Rs 10 lakh.

Detailed explanation-2: -The Scheme covers collateral free credit facility (term loan and/ or working capital) extended by eligible lending institutions to new and existing micro and small enterprises up to Rs. 100 lakh per borrowing unit.

Detailed explanation-3: -For the MSME loan scheme 2023, the interest rate is generally 7.65% annually.

Detailed explanation-4: -A composite loan limit of ₹1 crore can be sanctioned by banks to enable the MSME entrepreneurs to avail of their working capital and term loan requirement through Single Window in terms of our Master Direction on Lending to the MSME sector dated July 24, 2017.

There is 1 question to complete.