Question
According to the Tandon Committee's recommendations,
what is the maximum permissible bank finance (MPBF) that a bank may lend?Solution
As per the Tandon Committee’s first method, the maximum permissible bank finance (MPBF) that a bank may lend is 75% of the working capital gap (WCG), with the remaining 25% required to be covered by the borrower’s margin
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