Question

Which of the following statements correctly describe the features of a revolving credit facility?
i. The borrower is sanctioned a credit limit for the commitment period.  ii. Funds can be drawn, repaid, and re-borrowed multiple times during this period.  iii. It sometimes includes an option to convert into a term loan at maturity.  iv. It requires repayment in a fixed number of equal installments like a standard term loan.

A Only (i) and (ii)
B Only (ii) and (iv)
C (i), (ii), and (iii)
D (i), (iii), and (iv)
E All of the above
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)