GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which is known as the arrangement when more than one banks allow credit facilities to one party in cordination with each other?
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Subvention
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Moratorium
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Consortium
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Amortization
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Explanation:
Detailed explanation-1: -In the financial world, a consortium refers to several lending institutions that group together to jointly finance a single borrower.
Detailed explanation-2: -Types of credit facilities include revolving loan facilities, retail credit facilities (like credit cards), committed facilities, letters of credit, and most retail credit accounts.
Detailed explanation-3: -There is no ceiling on number of banks in a consortium, whether it is obligatory (fund‑based credit limits of Rs. 50 crates and above from more than one bank) or voluntary (fund based credit limits below Rs.
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