Question

    A loan given to an entity with investment in plant and

    machinery up to ₹5 crore and turnover up to ₹50 crore will be classified under which category?
    A Medium Enterprise Loan Correct Answer Incorrect Answer
    B Loan to Micro Enterprise Correct Answer Incorrect Answer
    C Priority Sector Loan (Loan to Small Enterprise) Correct Answer Incorrect Answer
    D Government-backed MSME Loan Correct Answer Incorrect Answer
    E Stand-Up India Scheme Correct Answer Incorrect Answer

    Solution

    As per RBI norms, this qualifies as a Priority Sector Loan under Small Enterprise category, enabling the borrower to access PSL-linked benefits such as concessional interest and inclusion under mandatory lending targets.

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