Bank's Promotion Exam - Question Set

Bank’s Promotion Exam – Question Set – MSME Part 1

We are giving you Part 1 of MSME.

Friends, when we study some topic and didn’t revise it, we forget them in a day or two. To memorize the concept, repeated revision of topic is necessary.

This free question paper set has been made keeping in mind to make you remember important points about a topic which can be asked in upcoming promotion exam. I would suggest to utilize this free question paper set in following way.

After studying the topic, go through the questions and attempt it.
If you are not knowing the answer, guess it and right option will be shown instantly with green background.
This way you will know right answer instantly.
Go through whole question bank of almost 50 questions and see your result.
Don’t be de-motivated if score is less for the first time.
Positive thing is that you have covered 50 important points about the topic.
Attempt for the 2^nd time and see the difference.
And in 3^rd attempt, you will be in position to score more than 95% and you will have good grasp of the topic.

Best Wishes…

Results

#1. A Micro Enterprise is an enterprise where investment in plant and machinery or equipment does not exceed crore and turnover does not exceed crore?

1, 10

5, 10

1, 5

10 50

50 250

#2. As per RBI stipulation target fixed for micro sector under MSE is __________% of ANBC or Credit Equivalent Amount of Off Balance Sheet Exposure whichever is higher?

7.5

#3. What is the time schedule for disposal of MSME loan application upto Rs 2.00 lacs?

2 weeks

4 weeks

6 weeks

8 weeks

3 weeks

#4. What is the time limit for loan application of MSE borrower above Rs 25.00 lacs?

4 weeks

6 weeks

8 weeks

10 weeks

2 weeks

#5. Branch cannot accept collateral security in case of loans upto Rs___________ Lakhs extended to MSE sector?

#6. Which of the following initiatives have been taken by government to boost MSMEs?

PMEGP Loans

Mudra Loans

Stand Up India Loans

GECL facilities

All of the above

#7. PSBLOANIN59MINUTES.com enables in principle approval for MSME loans upto Rs _________ Lacs within 59 minutes?

500

400

300

200

100

#8. Which of the following entities have been approved by Reserve Bank of India for setting up TReDS platform?

Receivables Exchange of India Ltd

A Treds

Mynd Solutions Pvt Ltd

All of the above

None of the above

#9. National goal for financing to Agriculture sector is __________ % of the ANBC or Credit Equivalent of Off Balance Sheet Exposure whichever is higher?

#10. Under Hybrid Security Model of CGTMSE loans upto __________ Lacs can be partially secured by collateral and remaining amount can be covered through CGTMSE coverage?

100

200

300

400

500

#11. What is the full form of MUDRA?

Micro Units Development and Redemption Agency Ltd

Micro Units Development and Redevelopment Agency Ltd

Micro Units Development and Refinance Agency Ltd

Medium Units Development and Refinance Agency Ltd

Medium Units Development and Redevelopment Agency Ltd

#12. When was MUDRA setup?

8-Apr-16

8-Apr-15

9-Apr-16

9-Apr-15

8-May-15

#13. What is the maximum amount of loan that can be granted under the Mudra Yojana?

50000

1 lakh

5 lakhs

7 lakhs

10 lakhs

#14. Loans granted under the Mudra Yojana will be classified under priority sector. State True or False.

TRUE

FALSE

#15. Who among the following is eligible to avail Mudra loan?

Individual

Proprietorship

Partnership firms

Limited Liability Partnerships (LLPs)

All of the above

#16. The MUDRA scheme is classified into how many categories?

#17. What is the amount of loan that can be given under the Kishore category under Murdra Loan?

Upto Rs 50000

Rs 50000 to Rs 5 Lakhs

Rs 5 Lakhs to Rs 7 Lakhs

Rs 5 Lakhs to Rs 10 Lakhs

Rs 7 Lakhs to 10 Lakhs

#18. Mudra loan can be extended in the form of __

Term Loan

Working Capital

Composite Loan

All of the above

None of the above

#19. Under PMMY what is the maximum loan amount for which the external credit risk rating is exempted?

2 Lakhs

2.5 Lakhs

3 Lakhs

4 Lakhs

4.5 Lakhs

#20. How much margin is to be maintained in case the cash credit limit is above 2 lakhs under Murdra Loan?

Maximum 6%

Maximum 5%

Minimum 5%

Minimum 6%

No margin

#21. How much margin is to be maintained in case of term loan above 5 lakhs but upto 10 lakhs under Murdra Loan?

NIL

10%

15%

20%

#22. How much margin is to be maintained in case of term loan above 2 lakhs but upto 5 lakhs under Murdra Loan?

NIL

10%

15%

20%

#23. What is the time limit to dispose off a loan application with credit limit above 5 lakhs under Murdra Loan?

2 weeks from the date of receipt of proposal

2 months from the date of receipt of proposal

3 weeks from the date of receipt of proposal

3 months from the date of receipt of proposal

1 week from the date of receipt of proposal

#24. Can a defaulter in any Bank/ Financial Institution avail loan under the Mudra scheme?

Yes

#25. Is it mandatory on part of the borrower to furnish an undertaking that he/ she will deal exclusively with our bank in case he avails MUDRA loan?

Yes

#26. What is the repayment period of Mudra loan?

7 Years

8 Years

6 Years

5 Years

4 Years

#27. Is it mandatory to obtain Udhyog Adhaar Number ?

Yes

#28. What is the time period for which working capital limit can be sanctioned under PMMY?

6 Years

5 Years

4 Years

3 Years

2 Years

#29. Mudra card can be issued to joint account holders. State True or False.

TRUE

FALSE

#30. What is the maximum amount of loan that can be availed through MUDRA card?

10 Lakhs

5 Lakhs

1 Lakh

7 Lakhs

0.50 Lakhs

#31. What should be the minimum existing credit facility for providing car loan to existing MSME/ Corporate Borrowers?

200.00 lacs

150.00 lacs

50.00 lacs

250.00 lacs

100.00 lacs

#32. What is the minimum loan amount that can be sanctioned for 3rd loan under PM Svanidhi Scheme 2.0?

20000

30000

40000

25000

35000

#33. What are the pre payment charges for street vendor who wishes to prepay his 3rd loan taken under PM Svanidhi 2.0 scheme?

0.05% of loan amount

0.10% of loan amount

Nil

0.05% of outstanding amount

0.10% of outstanding amount

#34. What is the maximum loan amount that can be sanctioned for 3rd loan under PM Svanidhi Scheme 2.0?

20000

30000

40000

50000

Need based

#35. MSMED Act 2006 was enacted by the Government of India on …………… and was notified on …………….?

June 16 2006 and October 2 2006

June 06 2006 and October 2 2006

June 16 2007 and October 2 2007

June 06 2006 and October 12 2006

June 06 2007 and October 2 2007

#36. As per revised definition of MSME micro enterprises are those where investment in plant and machinery does not exceed ................. And turnover does not exceed .............?

5.00 crores 50.00 crores

1.00 crores 5.00 crores

1.00 crores 10.00 crores

5.00 crores 10.00 crores

None of the above

#37. As per revised definition of MSME small enterprises are those where investment in plant and machinery does not exceed ................. And turnover does not exceed .............?

5.00 crores 50.00 crores

1.00 crores 5.00 crores

10.00 crores 50.00 crores

5.00 crores 10.00 crores

None of the above

#38. If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover it will cease to exist in that category and be placed in the next higher category as per MSME definition. State True or False?

TRUE

FALSE

#39. As per MSME definition Enterprise shall be placed in the lower category if it goes below the ceiling limits specified for its present category in any one of the criteria of investment or turnover. State True or False?

TRUE

FALSE

#40. Which among the following should be excluded while calculating Turnover while ascertaining turnover criteria for MSME classification?

Export of Goods

Export of Services

Both of the above

Any one of the above

None of the above

#41. In case of a new enterprise where no prior ITR is available the investment will be based on ………….. of the promoter of the enterprise and such relaxation shall end after the …………. in which it files its first ITR for classification under MSME?

Self Declaration 31st March of the financial year

CA Certificate 31st March of the financial Year

Self Declaration 31st March of the next financial year

CA certificate 31st March of the next financial year

None of the above

#42. The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to …………. and thereafter PAN and GSTIN shall be mandatory for MSME classification?

31st March 2020

31st March 2021

31st March 2022

30th September 2021

30th September 2022

#43. Branch to provide acknowledgement of the receipt of the loan proposal under MSME for application received online or in physical form by the branch. State True or False?

TRUE

FALSE

#44. A discount of ........... has to be given in processing/ upfront fees for the loan application received online for loan under MSME schemes?

10%

15%

20%

25%

#45. No collateral security has to taken for loans sanctioned upto ............. and are required to be covered under ............... Under MSME?

Rs 5.00 lacs CGTMSE

Rs 10.00 lacs CGTSME

Rs 10.00 lacs CGTMSE

Rs 5.00 lacs CGTSME

Any of the above

#46. A composite loan limit of ………. can be sanctioned by banks to enable the MSE entrepreneurs to avail of their working capital and term loan requirement through Single Window?

Rs 50.00 lacs

Rs 100.00 lacs

Rs 125.00 lacs

Rs 75.00 lacs

Rs 150.00 lacs

#47. Credit Linked Capital Subsidy Scheme (CLSS) for Technology Up gradation of Micro and Small Enterprises is subjected to which of the following terms and conditions?

Ceiling on the loan under the scheme is Rs.1 crore.

The rate of subsidy is 15% for all units of micro and small enterprises up to loan ceiling at Sr. No. (i) above.

Calculation of admissible subsidy will be done with reference to the purchase price of plant and machinery instead of term loan disbursed to the beneficiary unit.

All of the above

None of the above

#48. Resolution Framework 2.0 is applicable to MSME units whose exposure does not exceed ............. including non fund based limit as on 31.03.2021?

10.00 crores

25.00 crores

50.00 crores

75.00 crores

100.00 crores

#49. Under Resolution 2.0 restructuring of the borrower account is invoked by …………….. and restructuring of the borrower account is implemented within ……. days from the date of invocation?

31.03.2021 90

31.03.2021 120

30.09.21 120

30.09.2021 90

31.12.2021 90

#50. Loans among which of the following will be included in priority sector lending?

Loans to Micro Sector

Loans to Small Sectors

Loans to Medium Sector

All of the above

None of the above

Finish

Results

#1. A Micro Enterprise is an enterprise where investment in plant and machinery or equipment does not exceed __________ crore and turnover does not exceed __________ crore?

#2. As per RBI stipulation target fixed for micro sector under MSE is __________% of ANBC or Credit Equivalent Amount of Off Balance Sheet Exposure whichever is higher?

#3. What is the time schedule for disposal of MSME loan application upto Rs 2.00 lacs?

#4. What is the time limit for loan application of MSE borrower above Rs 25.00 lacs?

#5. Branch cannot accept collateral security in case of loans upto Rs___________ Lakhs extended to MSE sector?

#6. Which of the following initiatives have been taken by government to boost MSMEs?

#7. PSBLOANIN59MINUTES.com enables in principle approval for MSME loans upto Rs _________ Lacs within 59 minutes?

#8. Which of the following entities have been approved by Reserve Bank of India for setting up TReDS platform?

#9. National goal for financing to Agriculture sector is __________ % of the ANBC or Credit Equivalent of Off Balance Sheet Exposure whichever is higher?

#10. Under Hybrid Security Model of CGTMSE loans upto __________ Lacs can be partially secured by collateral and remaining amount can be covered through CGTMSE coverage?

#11. What is the full form of MUDRA?

#12. When was MUDRA setup?

#13. What is the maximum amount of loan that can be granted under the Mudra Yojana?

#14. Loans granted under the Mudra Yojana will be classified under priority sector. State True or False.

#15. Who among the following is eligible to avail Mudra loan?

#16. The MUDRA scheme is classified into how many categories?

#17. What is the amount of loan that can be given under the Kishore category under Murdra Loan?

#18. Mudra loan can be extended in the form of __

#19. Under PMMY what is the maximum loan amount for which the external credit risk rating is exempted?

#20. How much margin is to be maintained in case the cash credit limit is above 2 lakhs under Murdra Loan?

#21. How much margin is to be maintained in case of term loan above 5 lakhs but upto 10 lakhs under Murdra Loan?

#22. How much margin is to be maintained in case of term loan above 2 lakhs but upto 5 lakhs under Murdra Loan?

#23. What is the time limit to dispose off a loan application with credit limit above 5 lakhs under Murdra Loan?

#24. Can a defaulter in any Bank/ Financial Institution avail loan under the Mudra scheme?

#25. Is it mandatory on part of the borrower to furnish an undertaking that he/ she will deal exclusively with our bank in case he avails MUDRA loan?

#26. What is the repayment period of Mudra loan?

#27. Is it mandatory to obtain Udhyog Adhaar Number ?

#28. What is the time period for which working capital limit can be sanctioned under PMMY?

#29. Mudra card can be issued to joint account holders. State True or False.

#30. What is the maximum amount of loan that can be availed through MUDRA card?

#31. What should be the minimum existing credit facility for providing car loan to existing MSME/ Corporate Borrowers?

#32. What is the minimum loan amount that can be sanctioned for 3rd loan under PM Svanidhi Scheme 2.0?

#33. What are the pre payment charges for street vendor who wishes to prepay his 3rd loan taken under PM Svanidhi 2.0 scheme?

#34. What is the maximum loan amount that can be sanctioned for 3rd loan under PM Svanidhi Scheme 2.0?

#35. MSMED Act 2006 was enacted by the Government of India on …………… and was notified on …………….?

#36. As per revised definition of MSME micro enterprises are those where investment in plant and machinery does not exceed ................. And turnover does not exceed .............?

#37. As per revised definition of MSME small enterprises are those where investment in plant and machinery does not exceed ................. And turnover does not exceed .............?

#38. If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover it will cease to exist in that category and be placed in the next higher category as per MSME definition. State True or False?

#39. As per MSME definition Enterprise shall be placed in the lower category if it goes below the ceiling limits specified for its present category in any one of the criteria of investment or turnover. State True or False?

#40. Which among the following should be excluded while calculating Turnover while ascertaining turnover criteria for MSME classification?

#41. In case of a new enterprise where no prior ITR is available the investment will be based on ………….. of the promoter of the enterprise and such relaxation shall end after the …………. in which it files its first ITR for classification under MSME?

#42. The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to …………. and thereafter PAN and GSTIN shall be mandatory for MSME classification?

#43. Branch to provide acknowledgement of the receipt of the loan proposal under MSME for application received online or in physical form by the branch. State True or False?

#44. A discount of ........... has to be given in processing/ upfront fees for the loan application received online for loan under MSME schemes?

#45. No collateral security has to taken for loans sanctioned upto ............. and are required to be covered under ............... Under MSME?

#46. A composite loan limit of ………. can be sanctioned by banks to enable the MSE entrepreneurs to avail of their working capital and term loan requirement through Single Window?

#47. Credit Linked Capital Subsidy Scheme (CLSS) for Technology Up gradation of Micro and Small Enterprises is subjected to which of the following terms and conditions?

#48. Resolution Framework 2.0 is applicable to MSME units whose exposure does not exceed ............. including non fund based limit as on 31.03.2021?

#49. Under Resolution 2.0 restructuring of the borrower account is invoked by …………….. and restructuring of the borrower account is implemented within ……. days from the date of invocation?

#50. Loans among which of the following will be included in priority sector lending?

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#1. A Micro Enterprise is an enterprise where investment in plant and machinery or equipment does not exceed crore and turnover does not exceed crore?