Question

A loan is considered as a microfinance loan when certain features are met. Which of the following is NOT the correct feature of such a loan?

Q: Answer-A loan is considered as a microfinance loan when certain features are met. Which of the following...

A loan is considered as microfinance loans when it is a collateral-free loan , irrespective of end use and mode of application processing disbursal either through physical or digital channels, provided to low-income households, i.e., households having annual income up to 3,00,000 . For this purpose, the household shall mean an individual family unit, i.e., husband, wife and their unmarried children. To ensure collateral-free nature of the microfinance loan, the loan shall not be linked with a lien on the deposit account of the borrower. The REs shall have a board-approved policy to provide the flexibility of repayment periodicity on microfinance loans as per borrowers requirement. No pre-payment penalty on microfinance loans. Penalty, if any, for delayed payment shall be applied on the overdue amount only