MCQ - PPT - Govt Sponsored and MSME

Multiple Choice Questions
Govt Sponsored and MSME
1
Canara Institute of Bank Management, Manipal Learning & Development Vertical
1- Working Capital limits (i.e. OD/ OCC) of MSMEs considered under
schematic/ non schematic MSME Lending shall be opened under the
________, unless otherwise specified for certain specific MSME schemes
a.Product Code 256

b.Product Code 261
c.Product Code 2000
d.Product Code 1800
• Answer: c
2
2- For PMEGP loan, the acceptable borrower should get a minimum score
of _____out of 100 for loan upto Rs 10 lakhs and for loan above Rs 10 lakhs
minimum score of ______out of 100
a. 50, 60
b. 60, 50
c. 70, 75
d. 75, 70
• Answer: a
3
3- Cost of the project to be set up under the PMEGP scheme, should not
exceed ________ in respect of manufacturing activity and _________ in
respect of Service /business activity.
a.Rs 10 lakhs, Rs 5 Lakhs

b.Rs 20 lakhs, Rs 10 Lakhs
c.Rs 25 Lakhs, Rs 15 lakhs
d.Rs 50 lakhs, Rs 20 lakhs
• Answer: d
4
4- Which definition of industry and employment criteria is correct in case
of PMEGP loan
a. Capital Expenditure divided by full time employment created by the

project does not exceed Rs.4 lakh in plain areas.
b. Capital Expenditure divided by full time employment created by the
project does not exceed Rs.5 lakh in Hilly areas.
c. Capital Expenditure divided by full time employment created by the
project does not exceed Rs.4 lakh in respect of A&N Islands and
Lakshadweep.
d. All incorrect
• Answer: d
5
5- Under PMEGP loan, Working Capital component should be utilized in
such a way that at one point of stage it touches ________limit of Cash
Credit within ________ of lock in period of Margin Money and not less than
______ utilization of the sanctioned limit.
a.90% , five years, 75 %

b.95% , three years, 65%
c.100%, five years, 85%
d.100%, three years, 75%
• Answer: d
6
6- Under PMEGP loan, projects costing more than ________, which do not
require working capital, need clearance from the next higher authority.
a.Rs 2 lakh
b.Rs 3 Lakh
c.Rs 5 lakh
d.Rs 7.5 Lakh
• Answer: c
7
7- Only one person from one family is eligible for obtaining financial
assistance for setting up of projects under PMEGP. The 'family' includes self
and _________.
a.Spouse
b.Unmarried son and unmarried daughter
c.Spouse and unmarried son
d.Spouse and unemployed son
• Answer: a
8
8- Under PMEGP loan, the Bank will sanction ______ of the project cost in
case of General Category beneficiary/institution and _______in case of
special category beneficiary/institution.
a.75%, 85 %
b.80%, 85%
c.85%, 90%
d.90%, 95 %
• Answer: d
9
9- Initial moratorium under PMEGP scheme should not exceeding _______.
a.6 months
b.12 months
c.24 months
d.36 months
• Answer: a
10
10- The prospective entrepreneurs and beneficiaries under PMEGP scheme
can opt for the online training. Duration of such EDP training should be at
least ______ for projects with project cost up to Rs 5 Lakhs.
a.5 hours
b.10 hours
c.30 hours
d.60 hours
• Answer: c
11
can opt for the online training. Duration of such EDP training should be at
least ______ for projects with project cost above Rs 5 Lakhs
a.5 hours
b.10 hours
c.30 hours
d.60 hours
• Answer: d
12
can opt for the offline training. Duration of such EDP training should be at
least ______ for projects with project cost up to Rs 5 Lakhs.
a.5 days
b.10 days
c.30 days
d.60 days
• Answer: a
13
can opt for the offline training. Duration of such EDP training should be at
least ______ for projects with project cost above Rs 5 Lakhs.
a.5 days
b.10 days
c.30 days
d.60 days
• Answer: b
14
14- Under PMEGP scheme, the Financing Bank is not authorized to adjust
the Margin Money (subsidy) before the mandatory lock in period of 3 years
as well as without adjustment letter form the concerned IA. The lock-in
period of 3 years shall be considered from the __________.
a. date of release of 1st disbursement by the financing banks

b. date of release of final disbursement by the financing banks
c. date of receipt of Margin Money
d. date of sanction
• Answer: a
15
15- Once the margin money (subsidy) is received in favour of beneficiary,
within _______, Branches shall open Term Deposit for a period of three
years in the name of beneficiary / Institution and details of TDR shall be
uploaded to PMEGP Portal immediately.
a.24 hours
b.48 hours
c.3 days
d.7 days
• Answer: a
16
16- What is the minimum loan amount for 1st dose/1st year under
Deendayal Antyodaya Yojana – National Rural Livelihoods Mission?
a.Rs 1.00 lakh

b.Rs 1.50 lakh
c.Rs 2.00 lakh
d.Rs 3.00 lakh
• Answer: b
17
17- What is the minimum loan amount for 2nd dose/2nd year under
Deendayal Antyodaya Yojana – National Rural Livelihoods Mission?
a.Rs 1.00 lakh

b.Rs 1.50 lakh
c.Rs 2.00 lakh
d.Rs 3.00 lakh
• Answer: d
18
18- Women SHGs under DAY NRLM in rural areas are eligible for Interest
Subvention up to _______ during the FY 2022-23.
a.Rs 2.00 lakh

b.Rs 4.00 lakh
c.Rs 5.00 lakh
d.Rs 7.00 lakh
• Answer: c
19
19- Women SHGs under DAY NRLM in rural areas, for outstanding credit
balance up to Rs 3.00 lakhs, Interest shall be subvented at the uniform
rate of _____ p.a. during FY 2022-23.
a.3.00%
b.4.00%
c.4.50%
d.5.00%
• Answer: c
20
20- Women SHGs under DAY NRLM in rural areas, for outstanding credit
balance above Rs 3.00 lakh and up to Rs 5.00 lakh will be subvented at a
uniform rate of ______ p.a during FY 2022-23.
a.3.00%
b.4.00%
c.4.50%
d.5.00%
• Answer: d
21
21- Women SHGs under DAY NRLM in rural areas, for loan above Rs 3.00
lakh and up to Rs 5.00 lakh, interest to be charged at interest rate
equivalent to their _______ or any other external benchmark based lending
rate or ________, whichever is________.
a.1 year MCLR, 10% per annum, lower

b.1 year MCLR, 7% per annum, higher
c.1 year RLLR, 10% per annum, higher
d.1 year RLLR, 7% per annum, lower
• Answer: a
22
22- DAY-NRLM promotes affinity-based women Self Help Groups (SHGs), In
which case DAY-NRLM may have both men and women in the Self-Help
Groups?
a.Persons with Disabilities

b.Elders
c.Transgenders
d.All above
• Answer: d
23
23- Which one is the eligibility Criteria for SHGs to avail loans under DAY
NRLM?
a. SHGs should be in active existence for at least 6 months as per their
books of accounts
b. SHGs should be in active existence for at least 12 months as per their
books of accounts
c. SHGs should be in active existence for at least 6 months from the date
of opening of SB account.
d. SHGs should be in active existence for at least 12 months from the date
of opening of SB account.
• Answer: a
24
24- What is the Drawing Power for the first year, in case of Cash Credit
Limit granted to women SHG under DAY NRLM schem?
a. 6 times of the existing corpus or minimum of ₹2.0 lakhs,whichever is

lower
b. 4 times of the existing corpus or minimum of ₹1.0 lakhs, whichever is
higher
c. 6 times of the existing corpus or minimum of ₹1.5 lakhs, whichever is
higher
d. 8 times of the existing corpus or minimum of ₹3.0 lakhs, whichever is
lower
• Answer: c
25
25- What is the Drawing Power for the second year, in case of Cash Credit
Limit granted to women SHG under DAY NRLM scheme?
a. 8 times of the corpus at the time of review/enhancement or minimum

of Rs 3.0 lakhs, whichever is higher
b. 6 times of the corpus at the time of review/enhancement or minimum
of Rs 1.5 lakhs, whichever is higher
c. 8 times of the corpus at the time of review/enhancement or minimum
of Rs 3.0 lakhs, whichever is lower
d. 6 times of the corpus at the time of review/enhancement or minimum
of Rs 3.0 lakhs, whichever is lower
• Answer: a
26
26- What is the Drawing Power for the third year, in case of Cash Credit
Limit granted to women SHG under DAY NRLM scheme?
a. Maximum of ₹6 lakh based on Micro Credit Plan

b. Minimum of ₹6 lakh based on Micro Credit Plan
c. Maximum of ₹8 lakh based on Micro Credit Plan
d. Minimum of ₹8 lakh based on Micro Credit Plan
• Answer: b
27
27- In order to facilitate women SHG members under DAY NRLM to
graduate to entrepreneurs, banks may consider extending loans up to
______ to individual members of select matured well performing SHGs as
per their lending policy.
a.Rs 50000
b.Rs 100000
c.Rs 600000
d.Rs 1000000
• Answer: d
28
28- One woman in every SHG under DAY-NRLM may be provided a loan up to
_______ under the MUDRA Scheme, if she is otherwise eligible.
a.Rs 50000
b.Rs 100000
c.Rs 600000
d.Rs 1000000
• Answer: b
29
29- Banks are advised to provide minimum OD facility of ________ to every
woman SHG member having PMJDY account in accordance with the
guidelines issued by Indian Banks’ Association (IBA).
a.Rs 5000
b.Rs 10000
c.Rs 15000
d.Rs 20000
• Answer: a
30
30- Under DAY NRLM scheme, in order to facilitate use of loans for
augmenting livelihoods of SHG members, at least 50% of loans above _____,
75% of loans above _______ and at least 85% of loans above ______ should
be used primarily for income generating productive purposes.
a.Rs 50000, Rs 3 lakh, Rs 5 lakh

b.Rs 1 lakh, Rs 3 lakh, Rs 6 lakh
c.Rs 1 lakh, Rs 4 lakh, Rs 5 lakh
d.Rs 1 lakh, Rs 4 lakh, Rs 6 lakh
• Answer: d
31
31- What is the Repayment schedule for third dose of Term Loans under DAY
NRLM scheme?
a.24-36 months
b.36-48 months
c.48-60 months
d.60-84 months
• Answer: c
32
32- What is the margin requirement for loans above ₹10 lakh and up to ₹20
lakh, to SHGs under DAY NRLM scheme?
a. No margin requirement
b. 5% margin
c. Margin not exceeding 10% of the loan amount exceeding ₹10 lakh may
be obtained
d. Margin not exceeding 15% of the loan amount exceeding ₹10 lakh may
be obtained
• Answer: c
33
33- What is the coverage target for minorities under DAY NRLM Scheme?
a.10%
b.15%
c.25%
d.33.33%
• Answer: b
34
34- What is the coverage target for SC/ STs under DAY NRLM Scheme?
a.33.33%
b.40%
c.50%
d.60%
• Answer: c
35
35- What is the coverage target for person with disability under DAY NRLM
Scheme?
a.3%
b.5%
c.7%
d.10%
• Answer: a
36
36- Financing of the DAY NRLM programme is shared between the Centre
and the States in the ratio of ________.
a.70:30
b.50:50
c.60:40
d.40:60
• Answer: c
37
37- Which statement is correct in respect of target fixed to financing bank
under DRI scheme?
1.1% of previous year’s Gross bank credit
2.Not less than 2/3rd of DRI advances are to be routed through rural and
semi-urban branches, and the balance 1/3 to be routed through urban and
metropolitan branches.
3.Not less than 40% of the total DRI advances of the Bank should flow to the
eligible borrowers belonging to SCs/STs.
a.all are correct

b.1 and 2 correct
c.2 and 3 correct
d.only 2 correct • Answer: a
38
38- For determining income criteria, under DRI scheme, family income of
the borrower from all sources, should not exceed _______ per annum in
urban and semi-urban areas, ______ per annum in rural areas.
a.Rs 18000, Rs 30000

b.Rs 24000, Rs 30000
c.Rs 30000, Rs 15000
d.Rs 24000, Rs 18000
• Answer: d
39
39- The DRI borrower need not own any land or the size of land holdings
should not exceed _______ in case of irrigated land and ______ in the case
of unirrigated land.
a.one acre, 2.5 acres

b.2.5 acres, 5 acres
c.one acre, two acres
d.two acres, 5 acres
• Answer: a
40
40- Housing finance upto ______ @ _____to SC/ ST are to be treated under
DRI scheme, provided the concerned borrowers fulfil the income criteria
under DRI.
a.Rs 15000, 4%
b.Rs 20000, 4%
c.Rs 15000, 6%
d.Rs 20000, 6%
• Answer: b
41
41- Repayment period under DRI scheme should not exceed _____ including
grace period, if any, given upto a maximum of _______.
a.3 years, 1 year

b.5 years, 1 year
c.5 years, 2 years
d.3 years, 2 years
• Answer: c
42
42- DAY-NRLM would provide a Revolving Fund (RF) support to SHGs as
corpus, with a minimum of _______ and up to a maximum of _________ per
SHG.
a.Rs 10000, Rs 15000

b.Rs 10000, Rs 20000
c.Rs 20000, Rs 25000
d.Rs 20000, Rs 50000
• Answer: a
43
Product code for Term Loan and Working Capital under the PMEGP scheme
for Agriculture purpose is _____ and _______ respectively. (725/2022)
a.877, 261
b.860, 256
c.867,254
d.840,271
• Answer: a
44
For loans to women SHG accounts under DAY-NRLM scheme liquidity
premium should be added to card rate. The liquidity premium for loans
repayable more than 5 years is __________. (724/2022)
a.0.25%
b.0.40%
c.0.75%
d.0.80%
• Answer: d
45
What is the applicable rate of interest on Women SHG accounts under DAY-
NRLM scheme for loan amount upto Rs 3 lakhs?(724/2022)
a.4% p.a.
b.7% p.a.
c.8.5% p.a.
d.1 year MCLR
• Answer: b
46
What is the applicable rate of interest on Women SHG accounts under DAY-
NRLM scheme for loan amount above Rs 3 lakhs and upto Rs 5 lakhs?
(724/2022)
a.4% p.a.
b.7% p.a.
c.8.5% p.a.
d.1 year MCLR
• Answer: d
47
Under PMEGP, once the margin money (subsidy) is received in favour of
beneficiary, within ________, Branches shall open Term Deposit for a
period of three years in the name of beneficiary / Institution and details of
TDR shall be uploaded to PMEGP Portal immediately. (140/2022)
a.24 hrs
b.48 hrs
c.3 working days
d.5 working days
• Answer: a
48
Scheme for Rehabilitation of Manual Scavengers (SRMS) provides for
payment of interest subsidy for the gap between the rate of interest
charged by the Banks and the rate of interest prescribed under the scheme.
The prescribed rate of interest for women beneficiaries for projects upto
Rs 100000 under SRMS is _________. (312/2022)
a.4% per annum

b.5% per annum
c.6% per annum
d.7% per annum
• Answer: a
49
charged by the Banks and the rate of interest prescribed under the
scheme. The prescribed rate of interest for male beneficiaries for projects
upto Rs 100000 under SRMS is _________. (312/2022)
a.4% per annum

b.5% per annum
c.6% per annum
d.7% per annum
• Answer: b
50
charged by the Banks and the rate of interest prescribed under the scheme.
The prescribed rate of interest for women beneficiaries for projects above
Rs 100000 under SRMS is _________. (312/2022)
a.4% per annum

b.5% per annum
c.6% per annum
d.7% per annum
• Answer: c
51
What is period of repayment of loan, including moratorium period to loan
financed for projects up to Rs. 5,00,000 under SRMS? (312/2022)
a.2 years
b.3 years
c.5 years
d.7 years
• Answer: c
52
Loans upto a maximum project cost of ______ is admissible to identified
individual manual scavengers and their dependents under the Scheme for
Rehabilitation of Manual Scavengers. (312/2022)
a.Rs 50000
b.Rs 100000
c.Rs 2 lakh
d.Rs 15 lakh
• Answer: d
53
Loans upto a maximum project cost of ______ is admissible, for project of
Self Help Group under the Scheme for Rehabilitation of Manual Scavengers.
(312/2022)
a.Rs 2 lakh
b.Rs 10 lakh
c.Rs 15 lakh
d.Rs 50 lakh
• Answer: d
54
A moratorium period to start the repayment of loan under SRMS is up to 6
month for projects above Rs. 5,00,000 and the period of repayment of loan
is ______. (312/2022)
a.2 years
b.3 years
c.5 years
d.7 years
• Answer: d
55
What is the rate of up front capital subsidy to the individual beneficiaries
for the range of project cost up to Rs 500000? (312/2022)
a.10% of the project cost

b.15% of the project cost
c.25% of the project cost
d.50% of the project cost
• Answer: d
56
What is the rate of up front capital subsidy to the individual beneficiaries
for the range of project cost Rs 500000 to Rs 15 lakhs under Scheme for
Rehabilitation of Manual Scavengers? (312/2022)
a. Rs 0.5 lakh + remaining 25% of the remaining project cost above Rs 5
lakhs
b. Rs 0.5 lakh + remaining 10% of the remaining project cost above Rs 5
lakhs
c. Rs 2.5 lakh + remaining 25% of the remaining project cost above Rs 5
lakhs
d. Rs 2.5 lakh + remaining 10% of the remaining project cost above Rs 5
lakhs
• Answer: c
57
What is the maximum up front capital subsidy to the beneficiaries for group
projects under the Scheme for Rehabilitation of Manual Scavengers?
(312/2022)
a.Rs 3.5 lakh per beneficiary

b.Rs 3.75 lakh per beneficiary
c.Rs 4.25 lakh per beneficiary
d.Rs 4.5 lakh per beneficiary
• Answer: b
58
In which locations Deenadayal Antyodaya Yojana - National Urban Livelihood
Mission (DAY-NULM) is implemented?
1.All District Headquarters irrespective of population

2.All District Head quarters except below one lakh population
3.All cities above ten lakh or more population
4.All cities above one lakh or more population
a.1 and 3 only

b.1 and 4 only
c.2 and 3 only
• Answer: b
d.2 and 4 only
59
No margin money should be taken for a loan under DAY-NULM up to _______
and for higher amount loans, preferably ___ should be taken as margin
money and it should in no case be more than ____ of the project cost.
a.Rs 50000, 10%, 20%

b.Rs 100000, 10%, 10%
c.Rs 50000, 5%, 10%
d.Rs 100000, 10%, 5%
• Answer: c
60
Interest Subsidy, being interest charged over and above ____ rate of
interest will be available for the term loans granted under Self Employment
Program- Group Enterprises of DAY-NULM.
a.4%
b.6%
c.7%
d.9%
• Answer: c
61
What is the name of centraslised portal for processing of interest
subvention on bank loans to beneficiaries under DAY-NULM?
a.RuPay
b.PAiSA
c.SuPpOrT
d.Aajeevika
• Answer: b
62
The percentage of women beneficiaries under Self Employment Program of
DAY NULM should not be less than _______.
a.5%
b.7.5%
c.15%
d.30%
• Answer: d
63
What is the target of SC/ST beneficiaries under Self Employment Program
of DAY NULM?
a. 7.5% of beneficiaries should be from SC/ST

b. 15% of beneficiaries should be from SC/ST
c. To the extent of proportion of their strength in the city/town
d. No separate target is fixed for SC/ST beneficiaries
• Answer: c
64
What is the Maximum unit Project Cost for an individual micro-enterprise
under SEP-I of DAY NULM?
a.Rs 1 lakh
b.Rs 2 lakhs
c.Rs 5 lakhs
d.Rs 10 lakhs
• Answer: b
65
What is the special provision made for differently abled under Self
Employment Program of DAY NULM?
a.5% reservation
b.7.5% reservation
c.10% reservation
d.15% reservation
• Answer: a
66
Repayment schedule for loan granted SEP-I under DAY NULM ranges for
_____ inclusive of maximum moratorium of ______ .
a.7 years, 1 year

b.7 years, 6 months
c.5 years, 1 year
d.5 years, 6 months
• Answer: d
67
In view of the Prime Minister’s 15-Point Program for the Welfare of
Minorities, at least ____ of the physical and financial targets under Self
Employment Program of DAY NULM shall be earmarked for the minority
communities.
a.5%
b.7.5%
c.15%
d.30%
• Answer: c
68
Under SEP-G, DAY-NULM scheme, the group enterprises should have
minimum of ____ members with a minimum of ____ of the members from
urban poor families.
a.Five, 75%
b.Five, 70%
c.Three, 75%
d.Three, 70%
• Answer: d
69
Under SEP-G, DAY-NULM scheme the group is eligible for a maximum loan of
______ per member or ______, whichever is lower.
a.Rs 1 lakh, Rs 5 lakhs

b.Rs 1 lakh, Rs 10 lakhs
c.Rs 2 lakhs, Rs 5 lakhs
• Answer: d
70
MCQ on MSME
71
Incase of unsecured MSME loans above _______, two CIRs has to be drawn.
a.Rs 2 lakhs
b.Rs 3 lakhs
c.Rs 5 lakhs
d.Rs 10 lakhs
• Answer: a
72
Under Canara MSME CAP scheme, stock audit for low and normal risk
rated account is waived upto ______.
a.Rs 1 crore
b.Rs 2 Crore
c.Rs 5 Crore
d.Rs 10 Crore
• Answer: c

In case of loan quantum above ______ under Canara MSME CAP scheme,
valuation shall be carried out by two independent panel valuers and
_______ should be taken into consideration.
a. Rs 2 Crore, the lower

b. Rs 2 Crore, the higher
c. Rs 10 Crore, the lower
d. Rs 10 Crore, the higher
• Answer: a

If approved financial securities are accepted in sanction of loan under
Canara MSME CAP scheme, its surrender value should be______ .
a. 100% of loan sanctioned

b. 125% of loan sanctioned
c. 133% of loan sanctioned
d. 150% of loan sanctioned
• Answer: a

Under Canara MSME CAP scheme, vacant land may be accepted as security
upto a maximum of _____ of the permitted security comfort (in terms of
value).
a.10%
b.20%
c.25%
d.50%
• Answer: c

Under Canara MSME CAP scheme, in respect of properties which are less
than _______ old (as per latest execution of sale deed is done), value of
the property shall be taken as “sale deed value” or current “guideline
value” whichever is ________.
a.3 year, lower

b.3 year, higher
c.1 year, lower
d.1 year, higher
• Answer: d

Margin requirement for term loan granted under Canara MSME CAP loan
scheme is _____ .
a.10%
b.15%
c.20%
d.25%
• Answer: c

Margin requirement for working capital loan granted under Canara MSME
CAP loan scheme is ____ .
a.10%
b.15%
c.20%
d.25%
• Answer: c

Vacant land may be accepted as security under Canara MSME CAP loan
scheme upto 25% of stipulated security coverage. However, valuation of
such properties may be considered ______ of the acquisition cost as per
registered sale deed, if it is acquired within immediate preceding one
year.
a.50%
b.75%
c.85%
d.90%
• Answer: d

Vacant land may be accepted as security under Canara MSME CAP loan
scheme upto 25% of stipulated security coverage. However, valuation of
such properties shall be _______ of the Fair Market Value assessed by the
Bank’s approved Valuer should be taken as value of the land, if the land is
acquired /purchased beyond preceding one year.
a.50%
b.75%
c.85%
d.90%
• Answer: b

Under Canara MSME CAP loan scheme, maximum permissible loan quantum
for manufacturing unit is _____ .
a.Rs 5 Crores
b.Rs 10 Crores
c.Rs 20 Crores
d.Rs 25 Crores
• Answer: c

Under Canara MSME CAP loan scheme, maximum permissible loan quantum
for service unit is _____ .
a.Rs 5 Crores
b.Rs 10 Crores
c.Rs 20 Crores
d.Rs 25 Crores
• Answer: b

What is the minimum loan quantum under Canara MSME CAP scheme ?
a.Above Rs 10 lakhs
b.Above Rs 25 lakhs
c.Above Rs 50 lakhs
d.Above Rs 75 lakhs
• Answer: a

What is the maximum repayment period for term loan granted under
Canara MSME CAP ?
a.5 years
b.7 years
c.8 years
d.10 years
• Answer: d

What should be the value of the Urban or Metro properties /other approved
securities for loan granted to Manufacturing units under Canara MSME CAP
scheme ?
a.100% of loan amount

b.125% of loan amount
c.133% of loan amount
d.150% of loan amount
• Answer: a

What should be the value of the Urban or Metro properties/other approved
securities for loan granted to Service units under Canara MSME CAP
scheme?

• Answer: b

What should be the value of the Semi-Urban properties/other approved
securities for loan granted to Service units under Canara MSME CAP
scheme?

• Answer: d

What should be the value of the Semi-Urban properties/other approved
securities for loan granted to Manufacturing units under Canara MSME CAP
scheme?

• Answer: b

What should be the value of the Rural properties located close to
Metro/Urban/Semi Urban centres for loan granted to Manufacturing units
under Canara MSME CAP scheme?

• Answer: d

What should be the value of the Rural properties located close to
Metro/Urban/Semi Urban centres for loan granted to Service units under
Canara MSME CAP scheme?

• Answer: d

If approved financial securities are accepted in sanction of loan under
Canara MSME CAP scheme, its surrender value should be______ .
a. 100% of loan sanctioned

b. 125% of loan sanctioned
c. 133% of loan sanctioned
d. 150% of loan sanctioned
• Answer: a

Interest subsidy claims on all loans under the “PM Street Vendor’s Atma
Nirbhar Nidhi (PM SVANidhi)” scheme will be paid till ___________.
a.March,2023
b.March, 2024
c.March 2026
d.March, 2028
• Answer: d/397
93
What is the maximum loan amount under PM SVANidhi scheme in third
tranche?
a.Rs 50000
b.Rs 1 lakh
c.Rs 2 lakh
d.Rs 5 lakh
• Answer: a/397
94
Loan granted to street vendor during third tranche under PM SVANidhi
scheme should be repaid in _______ .
a.one year
b.two year
c.three year
d.five year
• Answer: c/397
95
Third tranche loans under the PM SVANidhi scheme of upto _________
may be considered to the eligible beneficiaries, subject to successful
repayment of the 2nd tranche loans extended to them for upto
__________.
a.Rs 30000, Rs 20000

b.Rs 50000, Rs 30000
c.Rs 50000, Rs 20000
d.Rs 30000, Rs 30000
• Answer: c/616
96
The facility under 3 rd tranche loans under the PM SVANidhi scheme with
the enhanced limit may be made available only after completion of
minimum repayment period of _________ under 2nd tranche loans.
a.3 months
b.6 months
c.9 months
d.12 months
• Answer: b/616
97
What is the maximum repayment period for 3rd tranche loans under the PM
SVANidhi scheme?
a.36 months
b.24 months
c.48 months
d.60 months
• Answer: a/616
98
With regard to the 3 rd tranche loans, PM SVANidhi scheme for Street
vendors, interest subsidy @ _____ up to ________ is apayable and the
claims will be paid only for the period during which the account has
remained standard.
a.6%, March 2025

b.6%, March 2028
c.7%, March 2025
d.7%, March 2028
• Answer: d/616
99
With regard to the 3rd tranche loans, PM SVANidhi scheme for Street
vendors, minimum and maximum amount of loan is __________and
_________ respectively.
a.Rs 20000, Rs 50000

b.Rs 30000, Rs 50000
c.Rs 20000, Rs 30000
d.Rs 10000, Rs 25000
• Answer: b/616
100
The street vendors availing loans under the PM Street Vendor’s
AtmaNirbhar Nidhi (PM SVANidhi)” scheme are eligible to get an Interest
Subsidy @ ______.
a.4%
b.5%
c.6%
d.7%
• Answer: d/644
101
What is the periodicity of interest subsidy claim under the PM Street
Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)” scheme?
a.Monthly
b.Quarterly
c.Half Yearly
d.Yearly
• Answer: b/644
102
What is the maximum loan quantum permissible under the Canara GST
scheme?
a.Rs 10 lakh
b.Rs 1 crore
c.Rs 5 crore
d.Rs 10 crore
• Answer: d/543
103
What is the minimum loan quantum permissible under the Canara GST
scheme?
a.Above Rs 5 lakh
b.Above Rs 7.5 lakh
c.Above Rs 10 lakh
d.Above Rs 50 lakh
• Answer: c/543
104
Which statement is incorrect in respect of Canara GST scheme?
a. Vacant land may be accepted as security upto a maximum of 25% of the
permitted security comfort (in terms of value), subject to fulfillment of
certain conditions and adherence to the applicable valuation norms
stipulated in this regard.
b. In respect of properties which are less than one year old (i.e. latest
execution of sale deed is done within 12 months), value of the property shall
be taken as “sale deed value” or current “guideline value” whichever is
lower
c. Tenanted properties can also be accepted as securities by the Respective
Sanctioning authorities, subject to obtention of a consent letter from the
tenant/s.
d. All are correct
• Answer: b/543
105
Circle Head CAC and above authorities can sanction Canara GST proposals
pertaining to manufacturing units with collateral security comfort of
__________.
a.25% to < 50%

b.50% to < 75%
b.<75%
d.<100%
• Answer: b/543
106
Value to loan amount under the Canara GST scheme shall be minimum ____
for proposals from manufacturing/service entities to be considered by
Respective Sanctioning authorities.
a.50%
b.75%
c.85%
d.90%
• Answer: b/543
107
If vacant land is accepted as security under Canara GST scheme, for
valuation purpose _______________ may be considered as cost of land, if it
is acquired within immediate preceding one year.
a.90% of the acquisition cost as per registered sale deed

b.75% of the acquisition cost as per registered sale deed
c.90 % of fair market value assessed by the Bank’s approved Valuer
d.75 % of fair market value assessed by the Bank’s approved Valuer
• Answer: a/543
108
If vacant land is accepted as security under Canara GST scheme, for
valuation purpose,___________________should be taken as value of the
land, If the land is acquired/ purchased beyond preceding one year.
a.90% of the acquisition cost as per registered sale deed

b.75% of the acquisition cost as per registered sale deed
c.90 % of fair market value assessed by the Bank’s approved Valuer
d.75 % of fair market value assessed by the Bank’s approved Valuer
• Answer: d/543
109
For being eligible under Canara GST scheme atleast _______ of turnover
reflected in GST return should have been routed through the Bank
account.
a.100%
b.80%
c.75%
d.60%
• Answer: c/543
110
Select Rural properties can be accepted as collateral securities under
Canara GST scheme, if it is _______.
1.located within 20 kms radius from nearby Metro city
2.located within 16 kms radius from nearby Urban city
3.located within 10 kms radius from nearby Semi-Urban Town
4.located in rural area
a.all above
b.1 and 3 only
c. 2 and 3 only
d.4 only • Answer: b/543
111
What is the permissible Bank Finance under Canara GST Scheme?
a. Maximum of 25% of preceding 12 months GST turnover as per GST
Returns, with NIL Margin.
b. Maximum of 25% of preceding 12 months GST turnover as per GST
Returns, with 5% Margin.
c. Maximum of 30 % of preceding 12 months GST turnover as per GST
Returns, with NIL Margin.
d. Maximum of 30 % of preceding 12 months GST turnover as per GST
Returns, with 10% Margin.
• Answer: a/543
112
What is the total amount of guarantees admissible under Emergency
Credit Line Guarantee Scheme (ECLGS)?
a.Rs 1.5 lakh crore

b.Rs 3.0 lakh crore
c.Rs 4.5 lakh crore
d.Rs 5.0 lakh crore
• Answer: d/556
113
Sanction under Emergency Credit Line Guarantee Scheme is valid upto
________ or till guarantees for an amount upto its admissible limit issued
(taking into account all the components of ECLGS), whichever is
________.
a.March 31, 2023, later

b.March 31, 2024, later
c.March 31, 2023, earlier
d.March 31, 2024, earlier
• Answer: c/556
114
Under ECLGS 4.0, all existing hospitals engaged in manufacturing of liquid
oxygen, oxygen cylinders etc, who have a credit facility from a lending
institution with days past due upto 90 days as on 31.03.2021 are eligible
for assistance of upto _______ for setting up technologies like Pressure
Swing Adsorption for on site oxygen producing plants.
a.Rs 2 Crore
b.Rs 4 Crore
c.Rs 5 Crore
d.Rs 10 Crore
• Answer: a/556
115
What is the total repayment period including moratorium under
Emergency Credit Line Guarantee Scheme (ECLGS) 4.0?
a.4 years
b.5 years
c.6 years
d.7 years
• Answer: b/556
116
What is the moratorium period on principal repayment under Emergency
Credit Line Guarantee Scheme (ECLGS) 4.0?
a.6 months
b.1 year
c.18 months
d.2 years
• Answer: a/556
117
What risk weight is assigned to the credit facilities extended under GECL?
a.Zero
b.10%
c.20%
d.25%
• Answer: a/556
118
The credit under GECL will rank second charge with the existing credit
facilities in terms of cash flows (including repayments) and securities,
with charge on the assets financed under the Scheme to be created within
a period of _______ from the date of disbursal or till ________, but in any
case prior to the account being classified as NPA.
a.6 months, March 31, 2023

b.3 months, March 31, 2023
c.6 months, June 30, 2023
d.3 months, June 30, 2023
• Answer: d/556
119
If a Bank charges a rate of interest higher than _____, such a loan would
not be eligible for guarantee coverage under Emergency Credit Line
Guarantee Scheme.
a.RLLR
b.Bank Rate+4%
c.9.25%
d.14%
• Answer: c/556
120
What is the minimum guarantee cover under Credit Enhancement
Guarantee Scheme for Scheduled Castes (CEGSSC)?
a.Rs 10 lakhs
b.Rs 15 lakhs
c.Rs 20 lakhs
d.Rs 25 lakhs
• Answer: b/565
121
What is the maximum guarantee cover under Credit Enhancement
Guarantee Scheme for Scheduled Castes (CEGSSC)?
a.Rs 50 lakhs
b.Rs 100 lakhs
c.Rs 200 lakhs
d.Rs 500 lakhs
• Answer: d/565
122
What is the tenure of guarantee under Credit Enhancement Guarantee
Scheme for Scheduled Castes (CEGSSC)?
a.Maximum of 3 years or repayment period, whichever is earlier

b.Maximum of 5 years or repayment period, whichever is earlier
c.Maximum of 7 years or repayment period, whichever is earlier
d.Maximum of 10 years or repayment period, whichever is earlier
• Answer: c/565
123
Individual SC entrepreneurs/Registered Companies and
Societies/Registered Partnership Firms/Sole Proprietorship firms having
more than _____shareholding and management control for the previous
________ by SC entrepreneurs/ promoters/members are eligible for
guarantee under Credit Enhancement Guarantee Scheme for Scheduled
Castes (CEGSSC).
a.51%, 6 months
b.50%, 6 months
c.51%, 12 months
d.50%, 12 months
• Answer: a/565
124
Last date of first disbursement of loans sanctioned under the “Loan
Guarantee Scheme for Covid Affected Sectors (LGSCAS)” of M/s NCGTC
Ltd, shall be within _______ of sanction of facility.
a.30 days
b.45 days
c.3 months
d.6 months
• Answer: c/560
125
Projects with maximum loan requirement upto ______ are eligible for
finance under the “Loan Guarantee Scheme for Covid Affected Sectors
(LGSCAS)” of M/s NCGTC Ltd.
a.Rs 10 Cr
b.Rs 25 Cr
c.Rs 50 Cr
d.Rs 100 Cr
• Answer: d/560
126
What is the applicable rate of interest to MSME and non-MSME for finance
under the “Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)”
of M/s NCGTC Ltd?
a.6.85%
b.7.95%
c.7.25%
d.6.79%
• Answer: b

What is the maximum permissible moratorium period for financing
construction of hospitals/healthcare infrastructure set-up under the
“Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)” of M/s
NCGTC Ltd?
a.6 months
b.9 months
c.12 months
d.18 months
• Answer: d/560
128
What is the maximum permissible moratorium period for financing
purchase of equipment only for expansion purposes under the “Loan
Ltd?
a.6 months
b.9 months
c.12 months
d.18 months
• Answer: a/560
129
What is the maximum permissible repayment tenor for loans under the
“Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)” of M/s
NCGTC Ltd?
a.5 years excluding moratorium

b.7 years excluding moratorium
c.5 years including moratorium
d.7 years including moratorium
• Answer: d/560
130
Respective sanctioning authority can finance eligible Brownfield projects
in other Districts (i.e. other than those identified as Aspirational
districts) with minimum _____ collateral security under the “Loan
Ltd.
a.70%
b.50%
c.40%
d.35%
• Answer: c/560
131
Next higher authority can relax the requirement of collateral security up
to _____ for financing Brownfield projects in other Districts (i.e. other
than those identified as Aspirational districts) under the “Loan
Ltd.
a.20%
b.35%
c.40%
d.50%
• Answer: a/560
132
Respective sanctioning authority can finance eligible Greenfield projects
and eligible Brownfield projects in Aspirational districts with minimum
_____ collateral security under the “Loan Guarantee Scheme for Covid
Affected Sectors (LGSCAS)” of M/s NCGTC Ltd.
a.20%
b.35%
c.40%
d.50%
• Answer: a/560
133
NCGTC provide the Guarantee coverage for financing Greenfield projects in
any area & Brownfield projects in aspirational districts on the _____ of
outstanding amount as on the date of NPA for the credit facility provided to
borrowers under the Loan Guarantee Scheme for Covid Affected Sectors
(LGSCAS)”.
a.50%
b.75%
c.80%
d.85%
• Answer: b/560
134
NCGTC provide the Guarantee coverage for financing Brownfield projects in
areas other than aspirational districts on the _____ of outstanding amount
as on the date of NPA for the credit facility provided to borrowers under
the Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)”.
a.50%
b.75%
c.80%
d.85%
• Answer: a/560
135
What is the maximum period of credit guarantee coverage for financing
greenfield projects under the “Loan Guarantee Scheme for Covid Affected
Sectors (LGSCAS)”?
a.2 years from the date of first disbursement

b.3 years from the date of first disbursement
c.4 years from the date of first disbursement
d.5 years from the date of first disbursement
• Answer: d/560
136
What is product code for opening Self Help Group term loan of Micro
Small and medium Enterprises?
a.225
b.737
c.2001
d.637
• Answer: d/571
137
What is product code for opening Self Help Group working capital limit of
Micro Small and Medium Enterprises?
a.225
b.737
c.2001
d.637
• Answer: c/571
138
“CIRM Hybrid Model” is applicable for Domestic borrowers having
exposure above Rs.____________________.
a.above Rs 10 Crore
b.above Rs 5 Crore to Rs 10 Crore
c.below Rs 5 Crore
d.above Rs 2 Crore to Rs 5 Crore
• Answer: d/600
139
Which parameter trigger the ‘High Risk’ in CIRM Hybrid Model?
a.Negative tangible networth due to withdrawal of capital

b.NPA with other banks
c.Auditors comment on going concern
d.All above
• Answer: d/600
140
What is the maximum subsidy available under Special Credit Linked
Capital Subsidy Scheme (SCLCSS) of SC-ST MSEs of Service/Manufacturing
Sector?
a.Rs 10 lakhs
b.Rs 20 lakhs
c.Rs 25 lakhs
d.Rs 50 lakhs
• Answer: c/632
141
Capital subsidy @ _____ of the Term Loan sanctioned for purchase of plant
and machinery and equipment is available under the under Special Credit
Linked Capital Subsidy Scheme (SCLCSS).
a.25%
b.33.33%
c.40%
d.42.5%
• Answer: a/632
142
What is the validity period of Special Credit Linked Capital Subsidy Scheme
(SCLCSS)?
a.31/03/2024
b.31/03/2026
c.31/12/2024
d.31/12/2026
• Answer: b/632
143
The financial support, incentives, benefits & other provisions applicable to
ZED certified MSMEs will be valid till ___________.
a.March 31, 2023.

b.March 31, 2024.
c.March 31, 2025.
d.March 31, 2026.
• Answer: d

The sanctioned concession in processing charges shall not be stipulated
more than ____ of the extant processing charges applicable under non-
schematic MSME lending to ZED certified MSMEs.
a.85%
b.75%
c.60%
d.50%
• Answer: b

Under CIRM (LAPS) Internal Risk Rating should be initiated by MSME Sulabhs
for ______ .
a. all MSME accounts

b. the MSME accounts having exposure below 2 crore
c. the MSME accounts having exposure above Rs. 2.00 Crore and upto Rs.
35.00 Crore.
d. the MSME accounts having exposure above Rs 35 crore
• Answer: c

MSME Sulabhs handle all fresh and enhancement of MSME loan proposals
(Except Loans against Deposit/Approved Securities and Gold Loans) beyond
cumulative cut off limits of _________ or branch delegated power
whichever is less in case of Small, Medium, Large and VLB branches.
a.Rs 10 lakh
b.Rs 15 lakh
c.Rs 20 lakh
d.Rs 25 lakh
• Answer: d

Who is the recommending authority for above MSME Sulabh power
(RO/CO/HO) proposals?
a. Processing Officer of Sulabh

b. Section Head of Sulabh
c. Concerned Branch Head
d. All above
• Answer: d

Which among the following loan document/s pertaining to Gold Loan is/are
exempted from mandatory generation in LAPS?
a. NF 497- Application–cum-Letter of Pledge for Loan/Overdraft (OD)

against Gold Jewellery
b. NF 1030 - Application–cum-Letter of Pledge for MSME Gold
Loan/Overdraft against Gold Jewellery
c. NF 1009- Application–cum-Letter of Pledge for Swarna Loan/Overdraft
against Gold Jewellery
d. All above
• Answer: d

DAF-SDSM Credit Guarantee Scheme for Subordinate Debt (CGSSD),
launched by CGTMSE is applicable for those MSMEs whose accounts have
been standard as on _________.
a.31.03.2018
b.01.01.2018
c.31.03.2016
d.01.01.2016
• Answer: d

Under Sub-debt scheme launched by CGTMSE, finance shall be extended to
support the promoter (s) of the distressed MSME units through a debt
facility of up to _____ of the promoter contribution (equity plus debt) or
_______ whichever is lower.
a.50%, Rs 75 lakhs
b.50%, Rs 1 crore
c.25%, Rs 75 lakhs
d.25%, Rs 1 crore
• Answer: a

DAF-SDSM Credit Guarantee Scheme for Subordinate Debt (CGSSD),
launched by CGTMSE extend support to the promoter(s) of the operational
MSMEs which are stressed, viz SMA-2 and NPA accounts as on _________.
a.31.03.2020
b.30.04.2020
c.30.06.2020
d.01.01.2020
• Answer: b

CGSSD Scheme provide guarantee coverage and Sub- Debt support in
respect of restructuring of MSMEs. Under the scheme _____ guarantee
coverage would come from scheme/ Trust and remaining _____from the
concerned promoter(s).
a.60%, 40%
b.70%, 30%
c.80%, 20%
d.90%, 10%
• Answer: d

Tenure of Guarantee cover under CGSSD scheme runs through the agreed
tenure of the Sub-debt facility between borrower and lending institution
basis the assessment of debt serviceability or for a maximum period of
_______ whichever is earlier.
a.3 years
b.5 years
c.7 years
d.10 years
• Answer: d/660
154
What is the maximum moratorium period on the payment of principal
under DAFSDSM Credit Guarantee Scheme for Subordinate Debt (CGSSD)?
a.10 years
b.7 years
c.5 years
d.3 years
• Answer: b/620
155
While the interest on the sub-debt under the CGSSD scheme is required
to be serviced regularly (monthly), the principal (along with interest)
should be repaid within a maximum of _______, after completion of
moratorium.
a.3 years
b.5 years
c.7 years
d.10 years
• Answer: a/620
156
Bank has introduced CEEF scheme to finance equipment loan. CEEF
stands for____.
a.Canara Easy Equipment Finance

b.Customer Equipment Eligibility Finance
c.Canara Ease Eligibility Fund
d.Customer Equipment Eligibility Framework
• Answer: a/660
157
Which eligibility criteria is incorrect in respect of CEEF scheme?
1. Borrowers having exposure upto Rs.25.00 crores, ECAI is not obligatory
2. Borrowers with internal rating upto CNR VIII Moderate Risk rating are
eligible to avail the loan.
3. For Non MSME borrowers having exposure above Rs.25.00 crores,
minimum external rating should be upto BB
4. For MSME borrowers having exposure above Rs.25.00 crores, minimum
external rating should be upto BBB
a.All are correct

b.1 and 4 are correct
• Answer: d/660
c.2 and 3 correct
d.1 and 2 correct
158
What is the maximum quantum of Term Loan under CEEF scheme to
existing clients/new clients who are rated AAA/ AA/ A or up to CNR V
Low Risk-III?
a.Rs 500 crore

b.Rs 100 crore
c.Rs 50 crore
d.Rs 25 crore
• Answer: b/660
159
What is the maximum quantum of Term Loan under CEEF scheme to
existing/New Clients who are rated BBB/ BB or CNR VI Normal/CNR VIII
Moderate Risk?
a.Rs 500 crore

b.Rs 100 crore
c.Rs 50 crore
d.Rs 25 crore
• Answer: c/660
160
Under CEEF scheme, _____ of the regular sanctioned working capital limits
(FB + NFB) to our existing clients only who are having one year of
satisfactory dealing with us can be sanctioned Line of Credit subject to a
maximum amount of ________.
a.25%, Rs 25 crore
b.20%, Rs 25 crore
c.25%, Rs 50 crore
d.20%, Rs 50 crore
• Answer: b/660
161
What is the minimum loan quantum under CEEF scheme?
a.Rs 25 crore
b.Rs 2 crore
c.Rs 25 lakhs
d.Rs 10 lakhs
• Answer: d/660
162
Quantum of TL & LoC put together under CEEF scheme should not exceed
the maximum amount of ________.
a.Rs 500 crore

b.Rs 100 crore
c.Rs 50 crore
d.Rs 25 crore
• Answer: b/660
163
As per CEEF scheme guidelines overall exposure/borrowing of the entity
should not exceed _________________ of the entity.
a.9 times the Net Owned Fund

b.6 times the Net Owned Fund
c.9 times of Paid Up capital
d.6 times of Paid Up capital
• Answer: a/660
164
Which Margin (for both Term loan & Line of credit) requirement is incorrect
under CEEF scheme?
a. 5% margin to existing clients who are rated AAA/ AA/ A or up to CNR V

Low Risk-III.
b. 10% margin to existing clients who are rated BBB/ BB or CNR VI Normal/
CNR VIII Moderate Risk
c. 15% margin to new clients who are rated AAA/ AA/ A or upto CNR V Low
Risk-III
d. 20% Margin to new clients who are rated BBB/ BB or CNR VI Normal/CNR
VIII Moderate Risk
• Answer: c/660
165
Term Loan under CEEF scheme is to be repaid in _______ Equated Monthly
Installments (EMIs) depending upon the economic life of the assets,
commencing from the next month of first Disbursement.
a.24 to 36
b.24 to 48
c.36 to 60
d.60 to 72
• Answer: c/660
166
Repayment holiday under CEEF scheme upto a maximum of ________ can
be permitted within the overall repayment period.
a.3 months
b.6 months
c.12 months
d.2 years
• Answer: a/660
167
Which condition is correct in respect of loan under CEEF scheme?
1.Firm should not have incurred loss in the previous year.
2.Second hand equipment can be financed under the subject scheme.
3.No Line of Credit to be permitted to new clients
4.No assets to be financed under Rental/Leasing arrangement
5.Project appraisal is waived under the scheme.
a.All are incorrect

b.1,2,3 and 4 are correct
c.2, 5 are correct
d.1,3,4 and 5 are correct
• Answer: d/660
168
Which eligibility criteria is incorrect in respect of Canara Easy Equipment
Finance (CEEF) scheme?
1. Borrowers having exposure upto Rs.25.00 crores, ECAI is not obligatory.

2. Borrowers with internal rating upto CNR VIII Moderate Risk rating are
eligible to avail the loan.
3. For Non MSME borrowers having exposure above Rs.25.00 crores,
minimum external rating should be upto BB.
4. For MSME borrowers having exposure above Rs.25.00 crores, minimum
external rating should be upto BBB.
a.All are correct
b.1 and 4 are correct • Answer: d
c.2 and 3 correct
d.1 and 2 correct

In case of MSME accounts, the accounts rated externally “_____” or better
shall only to taken over. (Wherever external rating is applicable).
a.AA
b.A
c.BBB
d.BB
Answer: d

In case of other than MSME accounts, the accounts rated externally as
“_____” or better shall only to taken over. (Wherever external rating is
applicable).
a. AA
b. A
c. BBB
d. BB
• Answer: c

ED-CAC & CAC of the Board may permit maximum of ____ variations in a
corporate and MSME proposal, out of which Major variations shall not
exceed ____.
a.2,1
b.3,2
c.4,2
d.4,1
• Answer: c

What is the threshold limit under enabling mechanism for meeting
payment obligations by large corporates to MSMEs?
a.Rs 5 Crore and above

b.Rs 10 crore and above
c.Rs 25 crore and above
d.Rs 50 crore and above
• Answer: b

The guidelines related with cross default and financial convenants are
applicable for Listed Corporate with exposure of ______ & above and listed
MSME borrowers with exposure of ______ & above.
a.Rs 100 Crores, Rs 10 Crores

b.Rs 75 Crores, Rs 5 Crores
c.Rs 50 Crores, Rs 1 Crores
d.Rs 10 Crores, Rs 0.50 Crores
• Answer: c

Canara Bank Proposal Rating (CBPR) is the Credit scoring matrix framework
under Enhanced Access & Service Excellence (EASE) Reforms for Corporate
loans equal and above ______ ( FB+NFB).
a.Rs 50 crore
b.Rs 25 crore
c.Rs 10 crore
d.Rs 5 crore
• Answer: a
175
Canara Bank Proposal Rating (CBPR) is the Credit scoring matrix
framework under Enhanced Access & Service Excellence (EASE) Reforms
for accounts classified under Agriculture as well as Food Processing Units
with exposure equal and above _______.
a.Rs 50 crore
b.Rs 25 crore
c.Rs 10 crore
d.Rs 5 crore
• Answer: c
176
Which rating grade is treated as NO GO?
a.CBPR-6
b.CBPR-5
c.CBPR-1
d.CBPR-0
• Answer: b
177
Canara Bank Proposal Rating (CBPR) is the Credit scoring matrix framework
under Enhanced Access & Service Excellence (EASE) Reforms for MSME loan
equal and above _________ (FB+NFB).
a.Rs 50 crore
b.Rs 25 crore
c.Rs 10 crore
d.Rs 5 crore
• Answer: c

Takeover with enhancement of MSME accounts with CGTMSE coverage can
be permitted if the security coverage in the form of Land & Building, our
own Bank Deposit, NSC, KVP and Insurance Policy available is not less than
____ for the exposure not covered by CGTMSE Guarantee.
a.50%
b.40%
c.30%
d.25%
• Answer: a

What is the Periodicity of RBIA of RAHs and MSME Sulabh?
1.12 months for Low and Moderate Risk
2.6 months for High Risk
3.18 months in respect of Low Risk
4.15 months in respect of Moderate Risk
a.2, 3 and 4
b.3 and 4
c.1, 3 and 4
d.1 and 2
• Answer: d

Minimum marks under scoring matrix to be scored for any MSME borrower
for considering the proposal for concessional rate of interest is _____.
a.40
b.50
c.60
d.70
Answer: a

Which statement is correct irrespective of rejection of credit proposals?
1. Rejection of proposals for educational loan is subject to concurrence of
the next higher authority.
2. Rejection of export credit proposals shall be immediately reported to MD
&CEO through the concerned Wing at HO.
3. Rejection of credit proposals from MSME is subject to concurrence of the
next higher authority.
4. Applications for credit facilities from SC / ST customers shall not be
rejected at branch level and such rejections shall be by the next higher
authority.
a.1,2 and 3 only
b.3 and 4 only • Answer: d
c.1 and 2 only
d.all are correct

For Agriculture and MSME Gold Loans, Processing Charges, Handling
Charges, Release Charges and CIR Charges have been consolidated to a
single Service Charge. What is such consolidated Charges for agriculture
and MSME Gold loan above Rs 1 lakh and upto Rs 3 lakhs?
a.Rs 250
b.Rs 500
c.Rs 1100
d.Rs 1450
• Answer: b

MCQ on MSME Policy
184
An enterprise is classified as micro, where the investment in Plant &
Machineries or equipment does not exceed Rs. ______ and turnover does
not exceed Rs_______.
a.One core, three crore

b.one crore, five crore
c.five crore, ten crore
d.five crore, twenty five crore
• Answer: b
185
An enterprise is classified as Small, where the investment in Plant &
Machineries or equipment does not exceed Rs _______ and turnover does not
exceed Rs ________.
a.five crore , ten crore

b.five crore, twenty five crore
c.ten crore, twenty five crore
d.ten crore, fifty crore
• Answer: d
186
An enterprise is classified as Medium, where the investment in Plant &
Machineries or equipment does not exceed Rs ________ and turnover
does not exceed Rs________.
a.fifty crore, two hundred crore

b.fifty crore, two hundred and fifty crore
c.one hundred crore, two hundred crore
d.one hundred crore, five hundred crore
• Answer: b
187
While calculating the investment in plant and machinery for classification as
MSME unit, which item is included?
a.Gas producer plant

b.Fire fighting equipment
c.Shipping charges
d.Installation of plant and machinery
• Answer: c
188
Which among the following is/are recommendation/s of the Prime Minister's
Task Force on MSMEs?
a. Achieve a 10% year-on-year growth in credit to Micro and Small

Enterprises
b. Achieve 20% annual growth in the number of Micro Enterprise accounts.
c. 60% of the total advances to Micro and Small Enterprises sector as on
preceding March 31st should go to Micro Enterprises
d. All above
• Answer: c
189
To avoid delayed Payment by corporate to Small Scale, in no case, the
period agreed upon between the supplier and the buyer shall not
exceed_________from the date of acceptance or the day of deemed
acceptance.
a.45 days
b.60 days
c.90 days
d.180 days
• Answer: a
190
To avoid delayed Payment by corporate to Small Scale, if the buyer fails to
make payment of the amount to the supplier, he shall be liable to pay
compound interest with monthly rests to the supplier on the amount from
the appointed day or, on the date agreed on, at _________.
a.14%
b.Bank Rate
c.Two time of the Bank Rate
d.Three times of the Bank Rate
• Answer: d
191
8. While sanctioning credit limits of ______ and above from the banking
system, Bank should fix separate sub-limits, within the overall limits,
specifically for meeting payment obligations in respect of purchases from
MSMEs either on cash basis or on bill basis.
a.Rs 2 crore
b.Rs 5 crore
c.Rs 10 crore
d.Rs 50 crore
• Answer: c
192
9. The maximum guarantee coverage by CGTMSE for other than Retail and
Wholesale trade is ________.
a.Rs 50 lakhs
b.Rs 75 lakhs
c.Rs 100 lakhs
d.Rs 200 lakhs
• Answer: d
193
10. The maximum guarantee coverage by CGTMSE for Retail and
Wholesale trade is ______.
a.Rs 50 lakhs
b.Rs 75 lakhs
c.Rs 100 lakhs
d.Rs 200 lakhs
• Answer: c
194
11. The CGTMSE cover is for a period of _______ or a block of ______,
keeping maximum period of guarantee cover of _______ or for such period
as may be specified by the trust in this behalf.
a.2 years, 2 years, 5 years

b.2 years, 5 years, 5 years
c.5 years, 5 years, 5 years
d.5 years, 5 years, 10 years
• Answer: d
195
12. In case of term loan, Annual Guarantee Fee for CGTMSE is calculated on
outstanding amount as on _______ against each guarantee account.
a.30th September
b.31st December
c.31st March
d.30th June
• Answer: b
196
13. Additional risk premium of _____ is charged by CGTMSE on the
applicable rate to MLIs who exceed the payout threshold limit of 2 times
more than ______ in last 5 years.
a.15%, thrice
b.15%, twice
c.10%, thrice
d.10%, twice
• Answer: a
197
14. Obtention of mandatory CGTMSE Cover can be waived for loans above
Rs.10 lakhs upto Rs.200 lakhs, when the borrower provides primary
security or primary and collateral security put together in the form of
land and building/ approved securities with a minimum value of _____ of
the sanctioned limit, in addition to the security of assets created out of
Bank’s finance.
a.50%
b.75%
c.100%
d.110% • Answer: b
198
15. CGFMU guarantees loans granted to eligible _______ under PMMY upto
the specified limit of Rs._____, without obtaining any collateral or third
party guarantee.
a.micro and small units, Rs 5 lakhs

b.micro and small units, Rs 10 lakhs
c.micro units, Rs 5 lakhs
d.micro units, Rs 10 lakhs
• Answer: d
199
16. To be eligible for CGFMU guarantee cover, the Rate of Interest
charged on SHISHU category loans, should not exceed ____ per annum.
a.7%
b.9%
c.12%
d.14%
• Answer: c
200
17. Credit Guarantee Scheme For Standup India (CGSSI), provide guarantee
cover to the extent of _____ of the amount in default for credit facility
above Rs.10 Lakhs and upto Rs.50 Lakhs.
a.50%
b.75%
c.80%
d.85%
• Answer: c
201
18. Credit Guarantee Scheme For Standup India (CGSSI), reimburse
maximum upto Rs_______ to Banks on default under guarantee
coverage.
a.Rs 40 lakhs
b.Rs 50 lakhs
c.Rs 65 lakhs
d.Rs 87.5 lakhs
• Answer: b
202
19. The minimum loan amount that can be covered under the Credit
Enhancement Guarantee Scheme For Scheduled Castes (CEGSSC) scheme is
_______.
a.Rs 15 lakhs
b.Rs 10 lakhs
c.Rs 7.5 lakhs
d.Rs 5 lakhs
• Answer: a
203
20. Which statement is correct?
a. The standby Credit for MSEs can be sanctioned upto 20% of the
sanctioned limit or the delegated power whichever is lower by respective
sanctioning authorities for Low/Normal Risk rated accounts.
b. The standby Credit for MSEs can be sanctioned upto 10% of the
sanctioned limit or the delegated power whichever is lower by respective
sanctioning authorities for Moderate Risk rated accounts
c. The standby credit in respect of export credit shall be 10% of the
sanctioned limit or the delegated power whichever is lower.
d. All are correct
• Answer: d
204
21. Standby Credit for Capital Expenditure of MSMEs is extended in the
form of Term Loans up to _____ of the original value of the existing plant
and machinery subject to a maximum of _______.
a.50%, Rs 25 lakhs
b.25%, Rs 25 lakhs
c.50%, Rs 50 lakhs
d.25%, Rs 50 lakhs
• Answer: b
205
22. Audited Balance Sheet should be obtained for financial analysis, in
respect of Limits above ______ or Turnover of ______ and above per annum
and also where audit of balance sheet is mandatory by statute.
a.Rs 25 lakhs, Rs 100 lakhs

b.Rs 20 lakhs, Rs 100 lakhs
• Answer: b
206
23. In respect of New Borrower project appraisal is applicable to proposed
projects including infrastructure with project cost of ______ and above.
a.Rs 100 lakhs

b.Rs 200 lakhs
c.Rs 500 lakhs
d.Rs 1000 lakhs
• Answer: c
207
24. Under the scheme for financing feature films, our finance should not
exceed ____ of the project cost and the ____ of the funds should be
sourced as margin from promoters and the remaining _____ advance can be
sourced from producers.
a.35%, 25%,40%
b.25%,35%,40%
c.40%,25%,35%
d.25%, 40%, 30%
• Answer: a
208
25. The Turn over method of assessment for the WC limits is applicable
for MSME ( Manufacturing and services) units up to working capital limit of
Rs ______.
a.Rs 2 crore
b.Rs 5 crore
c.Rs 10 crore
d.Rs 25 crore
• Answer: b
209
26. The Turn over method of assessment for the WC limits is applicable for
Traders, Merchants, Exporters, IT& Software & who are not having a pre-
determined manufacturing / trading cycle, up to working capital limit of Rs
______.
a.Rs 2 crore
b.Rs 5 crore
c.Rs 10 crore
d.Rs 25 crore
• Answer: a
210
27. What is the validity period of Term Loan Sanction?
a.One month
b.Two months
c.Three months
d.Six months
• Answer: d
211
28. Minimum hurdle rate/entry barrier for taking exposures in respect of
borrowers subjected to internal rating is _______.
a.Low Risk
b.Normal Risk
c.Moderate Risk
d.High Risk
• Answer: c
212
29. Which internal risk rating model is used in respect of borrowal account
with exposures above Rs. 20 lakh and upto Rs. 2 crore?
a.Small Value Model

b.CIRM Model
c.Portfolio Model
d.Manual Model
• Answer: d
213
30. ECAI rating should be obtained from all the Borrowers who are enjoying
credit exposure (FB + NFB) of above _______ from Banks/FIs.
a.Rs 2 crore
b.Rs 5 crore
c.Rs 10 crore
d.Rs 25 crore
• Answer: d
214
31. In case of externally unrated borrowers with exposure above Rs 25
Crores up to Rs 100 Crores, additional interest of _____ shall be charged
over and above the applicable rate of interest.
a.0.25%
b.0.40%
c.0.50%
d.0.75%
• Answer: a
215
32. Canara Bank Proposal Rating (CBPR) is the Credit scoring matrix
framework (Proposal Rating) under Enhanced Access & Service Excellence
(EASE) Reforms for MSME loans for _________.
a. Rs 2 crore and above

b. Rs 5 crore and above
c. Rs 10 crore and above
d. Rs 25 crore and above
• Answer: c
216
33. Facility rating is applicable for corporate exposure above _______ (FB +
NFB).
a.Rs 2 crores
b.Rs 5 crores
c.Rs 10 crores
d.Rs 25 crores
• Answer: b
217
34. In case of MSME accounts, the accounts rated externally _____or better
shall only to taken over.
a.BB
b.BBB
c.A
d.AA
• Answer: a
218
35. The PSB59 webportal is used for in principle approval for MSME loans
under MUDRA category and other loans upto ______ within 59 minutes.
a.Rs 2 crores
b.Rs 5 crores
c.Rs 10 crores
d.Rs 25 crores
• Answer: b
219
36. The Stand Up India scheme facilitates bank loans _______ to Schedule
Caste (SC) or Scheduled Tribe (ST) Entrepreneurs and Women
Entrepreneurs for setting up of Greenfield Project in manufacturing,
trading and services sector or agriculture allied activities and services
supporting these.
a.above Rs.10.00 Lakhs to Rs. 1.00 crore

b.above Rs.10.00 Lakhs to Rs. 2.00 crore
c.upto Rs 2 crore
d.upto Rs 50 lakhs
• Answer: a
220
37. The PMEGP scheme envisages maximum Project cost of Rs. ______ for
manufacturing sector and ________for Service sector.
a.Rs 10 Lakhs, Rs 5 Lakhs

b.Rs 5 Lakhs, Rs 2 Lakhs
c.Rs 25 Lakhs, Rs 5 Lakhs
d.Rs 25 Lakhs, 10 Lakhs
• Answer: d
221
38. For sanctioning 2nd loan under PMEGP scheme to manufacturing units,
financial assistance upto an amount of _______ is provided, and to
Service/Trading Units, financial assistance upto an amount of ______ is
provided.
a.Rs 25 Lakhs, Rs 10 Lakhs

b.Rs 50 Lakhs, Rs 25 Lakhs
c.Rs 100 Lakhs, Rs 25 Lakhs
d.Rs 200 Lakhs, Rs 50 Lakhs
• Answer: c
222
39. Weaver’s Mudra Scheme provide assistance , in the form of Working
Capital upto a Maximum of _____ and Term Loan upto a Maximum of _____
within a overall exposure of ____ per Borrower.
a.Rs 2 lacs, Rs 1 lac, Rs 3 lacs

b.Rs 2 lacs, Rs 50000, Rs 2 lacs
c.Rs 1 lac, Rs 50000 , Rs 1.5 lacs
d.Rs 1.5 lacs, Rs 1 lac, Rs 2.5 lacs
• Answer: b
223
40. The maximum interest subvention under Weaver’s Mudra Scheme is
capped at ____ p.a. and is provided for a maximum period of ______ from
the date of first disbursement.
a.7%, 3 years
b.7%, 5 years
c.6%, 3 years
d.6%, 5 years
• Answer: a
224
41. As per the present RBI instructions, the exposures included in the
regulatory retail portfolio of banks are assigned a risk weight of ________.
a.25 per cent

b.50 per cent
c.75 per cent
d.100 per cent
• Answer: c
225
42. What is the maximum loan quantum under Canara Vyapar scheme?
a.Rs 5 crore
b.Rs 10 crore
c.Rs 25 crore
d.Rs 50 crore
• Answer: b
226
43. Maximum permissible loan quantum under Canara MSME Cap is ______
in case of Manufacturing units and _________ in case of Service Units.
a.Rs 20 crore, Rs 10 crore

b.Rs 20 crore, Rs 5 crore
c.Rs 10 crore, Rs 5 crore
d.Rs 10 crore, Rs 2 crore
• Answer: a
227
44. The credit facility under Canara Udyog may be extended in the form of
Working Capital and/ or Term Loan with maximum permissible loan
quantum of _____with minimum margin of ______.
a.Rs 10 crores, 25%

b.Rs 10 crores, 20%
c.Rs 20 crores, 25%
d.Rs 20 crores, 20%
• Answer: b
228
45. What is the maximum permissible loan quantum under ‘Canara
Contractor Loan’ scheme?
a.Rs 5 crore
b.Rs 10 crore
c.Rs 25 crore
d.Rs 50 crore
• Answer: b
229
46. Under ‘Canara Smart Professional’ maximum permissible loan quantum
of ______ in case of Urban & Metro centers and ______ in case of other
centers can be sanctioned.

• Answer: d
230
47. What is the maximum permissible loan quantum under ‘Canara MSME
Expo’?
a.Rs 25 lakhs
b.Rs 50 lakhs
c.Rs 100 lakhs
d.Rs 200 lakhs
• Answer: b
231
48. What is permissible loan quantum under ‘MSME Can BEML’?
a.Between Rs. 10 lakhs to Rs. 300 lakhs

b.Between Rs. 10 lakhs to Rs. 200 lakhs
c.Between Rs. 20 lakhs to Rs. 300 lakhs
d.Between Rs. 20 lakhs to Rs. 200 lakhs
• Answer: c
232
49. What is permissible loan quantum under ‘Canara Caravan’?
a.Between Rs 50 lakh to Rs 2 crore

b.Between Rs 25 lakh to Rs 2 crore
c.Between Rs 50 lakh to Rs 5 crore
d.Between Rs 25 lakh to Rs 5 crore
• Answer: d
233
50. What is permissible loan quantum under ‘MSME Vahan’?
a.Rs 25 lakhs
b.Rs 50 lakhs
c.Rs 100 lakhs
d.Rs 200 lakhs
• Answer: a
234
51. What is the maximum permissible loan quantum under ‘Canara GST
Loan’ scheme?
a.Rs 5 crore
b.Rs 10 crore
c.Rs 25 crore
d.Rs 50 crore
• Answer: b
235
52. ‘Canara MSME Gold Loan’ is granted by way of overdraft (OD) or
Demand Loan (DL) with minimum loan quantum of _______.
a.Rs. 5 lakh and maximum of Rs. 25 lakhs.

b.Rs. 5 lakh and maximum of Rs. 50 lakhs.
c.Rs. 1 lakh and maximum of Rs. 35 lakhs.
d.Rs. 1 lakh and maximum of Rs. 15 lakhs.
• Answer: c
236
53. Stand-by Term Loan upto a maximum limit of ______ is granted under
Standby term loan scheme for Apparel exports in Small and Medium
sectors.
a.Rs 25 lakhs
b.Rs 50 lakhs
c.Rs 100 lakhs
d.Rs 200 lakhs
• Answer: c
237
54. The nature of facility under Loan scheme for reimbursement of
investment made in fixed assets by MSMEs is Term Loan and the permissible
quantum of finance is up to ______ for new machinery and maximum of
_________ for second hand machinery which is not more than 2 years old
from the original date of purchase.

• Answer: b
238

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Multiple Choice Questions

Govt Sponsored and MSME

a.Product Code 256

a.Rs 10 lakhs, Rs 5 Lakhs

a. Capital Expenditure divided by full time employment created by the

a.90% , five years, 75 %

a. date of release of 1st disbursement by the financing banks

a.Rs 1.00 lakh

a.Rs 1.00 lakh

a.Rs 2.00 lakh

a.1 year MCLR, 10% per annum, lower

a.Persons with Disabilities

a. 6 times of the existing corpus or minimum of ₹2.0 lakhs,whichever is

a. 8 times of the corpus at the time of review/enhancement or minimum

a. Maximum of ₹6 lakh based on Micro Credit Plan

a.Rs 50000, Rs 3 lakh, Rs 5 lakh

a.all are correct

a.Rs 18000, Rs 30000

a.one acre, 2.5 acres

a.3 years, 1 year

a.Rs 10000, Rs 15000

a.4% per annum

a.4% per annum

a.4% per annum

a.10% of the project cost

a.Rs 3.5 lakh per beneficiary

1.All District Headquarters irrespective of population

a.1 and 3 only

a.Rs 50000, 10%, 20%

a. 7.5% of beneficiaries should be from SC/ST

a.7 years, 1 year

a.Rs 1 lakh, Rs 5 lakhs

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a. Rs 2 Crore, the lower

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a. 100% of loan sanctioned

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a.3 year, lower

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a.100% of loan amount

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a.100% of loan amount

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a.100% of loan amount

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a.100% of loan amount

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a.100% of loan amount

Canara Institute of Bank Management, Manipal Learning & Development Vertical

a.100% of loan amount