New Enroll in RBI Grade B New Batch - Starts on May 21

    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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