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      Question

      Under CGFMU, the amount in default over and above the

      initial 3% borne by the lending institution is covered to what extent?
      A 50% Correct Answer Incorrect Answer
      B 60% Correct Answer Incorrect Answer
      C 75% Correct Answer Incorrect Answer
      D 80% Correct Answer Incorrect Answer
      E 90% Correct Answer Incorrect Answer

      Solution

      Under CGFMU, the first 3% of loss is borne by the lender. For the remaining default amount, 75% is covered by the guarantee fund, encouraging wider adoption of collateral-free credit.

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