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    Question

    Which of the following is a criterion for classifying a

    borrower as a 'Willful Defaulter'? 
    A The borrower has lost their job and cannot pay. Correct Answer Incorrect Answer
    B The unit has suffered a loss due to a natural calamity. Correct Answer Incorrect Answer
    C The borrower has diverted funds for purposes other than those for which the loan was granted. Correct Answer Incorrect Answer
    D The borrower has requested a restructuring of the loan. Correct Answer Incorrect Answer
    E The borrower has secondary loans with other banks. Correct Answer Incorrect Answer

    Solution

    Willful default occurs when a borrower has the capacity to pay but doesn't, or when funds are diverted/siphoned off, or when the asset bought with the loan is sold without the bank's knowledge.

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