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      Question

      Under the Projected Turnover Method what is the limit to

      the bank finance that can be provided to MSMEs?
      A 10% of turnover Correct Answer Incorrect Answer
      B 20% of turnover Correct Answer Incorrect Answer
      C 25% of turnover Correct Answer Incorrect Answer
      D 30% of turnover Correct Answer Incorrect Answer
      E 40% of turnover Correct Answer Incorrect Answer

      Solution

      According to this method, the working capital requirement of the MSME unit is calculated at 25% of the annual projected turnover. Out of the said Working Capital requirement, 5% requirement to be met by the borrower from his own sources, and the balance 20% to be financed by a lending bank.

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