Question

As per the Master Circular on Management of Advances – UCBs, for borrowers (other than MSEs) requiring fund-based working capital up to ₹1 crore and for Micro & Small Enterprises requiring up to ₹5 crore, how is the working capital requirement (25% of projected turnover) shared between borrower and bank?

A Borrower contributes 25%, bank provides 75%
B Borrower contributes 10%, bank provides 90%
C Borrower contributes 5%, bank provides 15%
D Borrower contributes 5%, bank provides 20%
E Borrower contributes 20%, bank provides 80%
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