CS Professional · Banking and Insurance - Laws and Practice · Various Government Schemes
Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, a bank sanctions a collateral-free loan to a micro unit. The loan turns bad and the guarantee cover is 75% of the amount in default. If the amount in default eligible for the claim is Rs 20 lakh, what is the maximum guarantee claim payable, ignoring other conditions?
The maximum claim is Rs 15 lakh, being 75% of the Rs 20 lakh default. The remaining 25%, or Rs 5 lakh, is borne by the lending institution. A 100% cover would give Rs 20 lakh, but the facts specify 75%.
- ARs 15 lakhCorrect
- BRs 5 lakh
- CRs 20 lakh
- DRs 12.5 lakh
Explanation
Guarantee claim = 75% x Rs 20 lakh = Rs 15 lakh. Rs 5 lakh is the uncovered 25% the bank bears. Rs 20 lakh assumes 100% cover. Rs 12.5 lakh has no basis in the data.
Did you get it right without looking?
One question tells you little. A timed set on Various Government Schemes shows your real accuracy, how long you take and where you lose marks.
More Various Government Schemes questions
- Anita, a woman entrepreneur in Pune, wants to start a manufacturing unit and approaches a scheduled commercial bank under the Stand-Up India…
- Ritu, a woman entrepreneur in Pune, wants to set up a new greenfield food-processing unit in the manufacturing sector. She seeks a bank loan…
- Sunrise Textiles, a new micro manufacturing unit in Surat, needs a collateral-free term loan of Rs 40 lakh from a bank. The promoter asks wh…
- A bank's Adjusted Net Bank Credit (ANBC) is Rs 8,000 crore. Under the RBI priority sector lending norms, a domestic scheduled commercial ban…
- Meera Textiles, a micro enterprise in Surat, wants a collateral-free term loan from a scheduled commercial bank to buy machinery. The bank i…
- A bank officer is advising Sunita on loans under MUDRA. Which statement about collateral and the nature of MUDRA is correct?