📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      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.

      Practice Next
      ask-question