Question
An MSME unit has projected turnover of ₹500 crore. As
per the 20% working capital norm, total WC requirement is assessed at 20% of turnover. The bank finances 80% of the assessed working capital. What is the maximum permissible bank finance?Solution
WC = 20% of 500 = 100. Bank share = 80% of 100 = ₹80 crore.
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