Question

Which of the following is not a correct feature of a microfinance loan as per RBI’s guidelines?

A It is collateral-free.
B It is provided to low-income households with annual household income of up to ₹2 lakh.
C It cannot be lien-marked to the borrower’s deposit account.
D It allows flexibility in repayment periodicity.
E It carries no prepayment penalty.
Practice Next

Hey! Ask a query