ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An LOC is an arrangement between a financial institution-usually a bank-and a customer that establishes the maximum loan amount that the customer can borrow. The borrower can access funds from the LOC at any time as long as they do not exceed the maximum amount (or credit limit) set in the agreement.

Detailed explanation-2: -Bankers want to see that you have personally invested in your business and to know that you will continue to do so. They also want to confirm that you would use the borrowed funds correctly. Banks want to know who you are, what you’ve done, and what your company has been doing.

Detailed explanation-3: -False. Was this answer helpful?

Detailed explanation-4: -KYC Documents. Duly filled in application form signed by the customer. Relevant financial documents. Bank account statement of last 6 months. PAN card/Form 60. Business Proof.