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    • 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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