Question

    As per RBI's regulatory framework (2022), a microfinance

    loan is defined as a collateral-free loan given to a household with annual income up to how much?
    A ₹1,50,000 Correct Answer Incorrect Answer
    B ₹2,00,000 Correct Answer Incorrect Answer
    C ₹3,00,000 Correct Answer Incorrect Answer
    D ₹5,00,000 Correct Answer Incorrect Answer
    E ₹10,00,000 Correct Answer Incorrect Answer

    Solution

    As per the updated RBI definition (March 2022), a microfinance loan is defined as a collateral-free loan to a household whose annual income does not exceed ₹3 lakh, regardless of the lending institution (banks, NBFCs, MFIs, etc.). This uniform definition aims to expand access to small borrowers and harmonize credit assessment norms across lenders.

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