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?  

A It is given to low-income households with annual household income of up to Rs.2 lakh
B It is collateral free
C It has flexibility in repayment periodicity
D The loan cannot be lien marked to deposit account of borrower
E There is no prepayment penalty
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