New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    According to the Principles of Lending, which of the

    following is NOT a primary factor when granting loans?
    A The purpose of the loan Correct Answer Incorrect Answer
    B Security offered for the loan Correct Answer Incorrect Answer
    C Diversification of risks Correct Answer Incorrect Answer
    D The age of the business owner Correct Answer Incorrect Answer
    E The liquidity of the loan Correct Answer Incorrect Answer

    Solution

    The age of the business owner is not a primary factor in granting loans. The most important factors are the purpose of the loan, the security provided, diversification of risks, and the liquidity of the loan, which ensure the loan is both safe and viable.

    Practice Next