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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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