Question

A borrower takes ₹1.10 lakh micro loan for tailoring business. His household income is ₹3.6 lakh per annum and loan is unsecured. The bank is checking whether it qualifies as micro finance under PSL. Which is correct?

A Eligible as loan below ₹1.25 lakh
B Not eligible due to income limit breach
C Eligible only if SHG member
D Not eligible as non-farm loan
E Eligible only under NRLM
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