Nr's Model Online Promotion Test For Bank Officers 2011 (Credit Schemes)

Approved & Edited by ProProfs Editorial Team

The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.

Learn about Our Editorial Process

| By Rajatvk

Rajatvk

Community Contributor

Quizzes Created: 7 | Total Attempts: 8,686

Questions: 91 | Attempts: 119 | Updated: Mar 14, 2024

Questions

Settings

Feedback

During the Quiz End of Quiz

Play as

Quiz Flashcard

Create your own Quiz

Nrs Model Online Promotion Test For Bank Officers 2011 (Credit Schemes) - Quiz

The test is on the New Products of the Bank.
In due course, I will include other questions. Please take Quiz Password by e Mailing to rajatvk@indiatimesmail. Com your full particulars like Name,Age,Place of Work/Study,Designation/Course,Phone/Mobile No and Address
With Best Wishes,
N. Rangarajan
Senior Manager of A Leading Public Sector Bank @ Trichy

Questions and Answers

1.

What is the name of the scheme which has replaced the Agri Jeep/Bike Schemes?
- A.
  
  Agri Transport
- B.
  
  Agri Vehicle
- C.
  
  Agri Infrastructure Scheme
- D.
  
  The Old Schemes continue without name change
Correct Answer
A. Agri Transport

Explanation
The correct answer is Agri Transport. This scheme has replaced the Agri Jeep/Bike Schemes.

Rate this question:
2.

What is the maximum amount of Education Loan granted for studies in India,that can be classified as Priority Sector advances?
- A.
  
  4 lacs
- B.
  
  7 lacs
- C.
  
  10 lacs
- D.
  
  20 lacs
Correct Answer
C. 10 lacs

Explanation
The maximum amount of Education Loan granted for studies in India, that can be classified as Priority Sector advances is 10 lacs. This means that if a student applies for an education loan in India for studies within the country, the maximum loan amount that can be granted under the Priority Sector category is 10 lacs.

Rate this question:
3.

What is the maximum amount of loan granted for foreign studies tha can be classified as Priority Sector Advance?
- A.
  
  5 lacs
- B.
  
  10 lacs
- C.
  
  15 lacs
- D.
  
  20 lacs
Correct Answer
D. 20 lacs

Explanation
The maximum amount of loan granted for foreign studies that can be classified as Priority Sector Advance is 20 lacs. This means that individuals can borrow up to 20 lacs for their foreign studies and it will be considered as a priority sector advance.

Rate this question:
4.

What is TREAD scehme?
- A.
  
  Treaty Relating to ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT
- B.
  
  TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT
- C.
  
  Trade Related Enterprise Addition and Deletion
- D.
  
  None of the above
Correct Answer
B. TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT

Explanation
The correct answer is TRADE RELATED ENTREPRENEURSHIP ASSISTANCE AND DEVELOPMENT. This scheme is related to providing assistance and support for the development of entrepreneurship in the context of trade. It aims to promote and facilitate the growth of entrepreneurial activities in the trade sector, helping entrepreneurs to start and expand their businesses.

Rate this question:
5.

Who are the ultimate beneficiaries of Tread Scheme?
- A.
  
  MSME UNITS
- B.
  
  Joint Liability Group
- C.
  
  Women enterpreneurs or Women SHG
- D.
  
  BPL People
Correct Answer
C. Women enterpreneurs or Women SHG

Explanation
The ultimate beneficiaries of the Tread Scheme are women entrepreneurs or women Self-Help Groups (SHG). This means that the scheme is specifically designed to support and empower women in starting and running their own businesses. The scheme aims to provide financial assistance, training, and other resources to help women entrepreneurs succeed and improve their economic conditions. By targeting women, the scheme aims to promote gender equality and women's empowerment in the business sector.

Rate this question:
6.

What are the eligibility criteria for IOB-Agri Transport Scheme?
- A.
  
  The farmer owning economically viable land holding or carrying out any other agricultural or allied activities having adequate income to meet the repayment commitments may be considered for loans under the scheme ,Should not be defaulters elsewhere with assessable repayment capacity
- B.
  
  Farmers owning 8 acres of lands (plantations 10 acres) for Four wheelers
- C.
  
  3 Years IT Assessment Orders Required
- D.
  
  Viable Collateral Property should be furnished
Correct Answer
A. The farmer owning economically viable land holding or carrying out any other agricultural or allied activities having adequate income to meet the repayment commitments may be considered for loans under the scheme ,Should not be defaulters elsewhere with assessable repayment capacity

Explanation
The eligibility criteria for the IOB-Agri Transport Scheme include being a farmer who owns economically viable land or engages in agricultural or allied activities with sufficient income to repay the loan. Additionally, the farmer should not have any default payments elsewhere and should have assessable repayment capacity.

Rate this question:
7.

For loans more than Rs 50000/- what is the Collateral security inder IOB Agri Transport Scheme?
- A.
  
  Hypothecation of Crop
- B.
  
  Hypothecation of Vehicle
- C.
  
  Hypothecation of Crop and the Vehicle to be purchased out of Bank Finance and Collateral security valued at least 50% of the loan amount in any form ie. land, building, FDR, Life policy, NSC etc
- D.
  
  None of the above
Correct Answer
C. Hypothecation of Crop and the Vehicle to be purchased out of Bank Finance and Collateral security valued at least 50% of the loan amount in any form ie. land, building, FDR, Life policy, NSC etc

Explanation
The correct answer is Hypothecation of Crop and the Vehicle to be purchased out of Bank Finance and Collateral security valued at least 50% of the loan amount in any form ie. land, building, FDR, Life policy, NSC etc. This means that for loans more than Rs 50000/- under the IOB Agri Transport Scheme, the borrower needs to hypothecate both the crop and the vehicle that will be purchased with the loan. Additionally, they need to provide collateral security valued at least 50% of the loan amount, which can be in the form of land, building, fixed deposit receipt (FDR), life policy, National Savings Certificate (NSC), or any other form accepted by the bank.

Rate this question:
8.

What is the new credit scheme introduced to replace the existing Kisan Green Credit Card Scheme ?
- A.
  
  IOB GREEN CREDIT
- B.
  
  IOB CARBON CREDIT
- C.
  
  IOB FARM CREDIT
- D.
  
  IOB KRISHI CREDIT
Correct Answer
A. IOB GREEN CREDIT

Explanation
The new credit scheme introduced to replace the existing Kisan Green Credit Card Scheme is IOB GREEN CREDIT.

Rate this question:
9.

What is the eligibility to avail loan under IOB Green Credit?
- A.
  
  Any Rural Folk
- B.
  
  Agri Labourers,Tenant Farmers,Share Croppers,SHG Members in rural areas,Joint Liability Group Members in Rural Area
- C.
  
  Anybody pursuing activities allied to agriculture
- D.
  
  Any farmer owning cultivable land in his own name
Correct Answer
D. Any farmer owning cultivable land in his own name

Explanation
The eligibility to avail a loan under IOB Green Credit is for any farmer who owns cultivable land in their own name. This means that only farmers who have land that can be used for cultivation are eligible for the loan. This requirement ensures that the loan is specifically targeted towards farmers who are directly involved in agricultural activities.

Rate this question:
10.

Under which type of facility, the Agri Green credit scheme is to be sanctioned?
- A.
  
  Agri Warehouse Finance Scheme
- B.
  
  Kissan Credit Card
- C.
  
  Agri Buisness Consultancy Loan either as TL or Cash Credit or Bill Finance
- D.
  
  Agricultural Term Loans
Correct Answer
D. Agricultural Term Loans

Explanation
The Agri Green credit scheme is to be sanctioned under Agricultural Term Loans. This type of facility provides credit to farmers for various agricultural purposes, including the adoption of green practices and technologies in agriculture. It allows farmers to access funds for activities such as purchasing equipment, improving irrigation systems, and implementing sustainable farming practices. Agricultural Term Loans are specifically designed to meet the financial needs of farmers and support the development of the agricultural sector.

Rate this question:
11.

What should be the end use of Agri Green Credit?
- A.
  
  Production Credit
- B.
  
  Investment Credit
- C.
  
  The amount can be used for cultivation, plantation, land development, purchase of milch animals, purchase of farm machinery like Tractors/ Power tillers, two wheelers, jeeps, trucks, construction of godowns for storage, farm houses, cattle sheds etc.
- D.
  
  All the Above
Correct Answer
D. All the Above

Explanation
The end use of Agri Green Credit can be all of the above options mentioned. The amount can be used for various purposes such as cultivation, plantation, land development, purchase of milch animals, farm machinery, construction of storage facilities, farmhouses, and cattle sheds. This implies that the credit can be utilized for both production-related activities and investment purposes in the agricultural sector.

Rate this question:
12.

What is the security norms under IOB Agri Credit Scheme?
- A.
  
  All the Following Options are applicable
- B.
  
  Mortgage of agricultural land having value of at least twice the loan amount
- C.
  
  Hypothecation of crop
- D.
  
  Hypothecation of any asset created out of loan amount
Correct Answer
A. All the Following Options are applicable

Explanation
The security norms under IOB Agri Credit Scheme include mortgage of agricultural land having value of at least twice the loan amount, hypothecation of crop, and hypothecation of any asset created out of the loan amount.

Rate this question:
13.

Which type of action cannot be invoked against agricultural land?
- A.
  
  Money/Mortgage Suit
- B.
  
  ABJ
- C.
  
  SARFAESI
- D.
  
  Attachment of Personal Assets
Correct Answer
C. SARFAESI

Explanation
SARFAESI stands for Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest. It is a law in India that allows banks and financial institutions to enforce their security interest in the assets of borrowers who have defaulted on their loans. However, agricultural land is exempted from the purview of SARFAESI, meaning that banks cannot invoke SARFAESI action against agricultural land.

Rate this question:
14.

What is the maximum reapyment programme under IOB-Agri Green Credit?
- A.
  
  Seven years in monthly, half yearly or annual installments depending upon the cropping pattern.
- B.
  
  Ten years in monthly, half yearly or annual installments depending upon the cropping pattern.
- C.
  
  Twenty years in monthly, half yearly or annual installments depending upon the cropping pattern.
- D.
  
  Need Not Repay
Correct Answer
A. Seven years in monthly, half yearly or annual installments depending upon the cropping pattern.

Explanation
The maximum repayment period for the IOB-Agri Green Credit is seven years. The repayment can be made in monthly, half-yearly, or annual installments, depending upon the cropping pattern.

Rate this question:
15.

What is the latest Agri advances scheme introduced exclusively for urban areas?
- A.
  
  IOB Metro Floriculture
- B.
  
  IOB Urban Horticulture
- C.
  
  IOB Urban Agriculture
- D.
  
  IOB URBAN FORESTRY
Correct Answer
B. IOB Urban Horticulture

Explanation
IOB Urban Horticulture is the correct answer as it is the latest Agri advances scheme introduced exclusively for urban areas. This scheme focuses on promoting horticulture practices in urban areas, encouraging people to cultivate plants and trees in their surroundings. It aims to improve the green cover in cities and promote sustainable urban agriculture.

Rate this question:
16.

Tenants staying in privately rented houses can be financed under IOB Urban Horticulture
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The statement is false because IOB Urban Horticulture is a financing scheme specifically designed for urban horticulture projects, not for financing tenants staying in privately rented houses.

Rate this question:
17.

Owners can be financed even if they are not staying in the house under IOB Urban Horticulture
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Owners can be financed even if they are not staying in the house under IOB Urban Horticulture. This means that individuals who own a house but do not live in it can still receive financing for their property through the IOB Urban Horticulture program. This may be beneficial for owners who have multiple properties or who choose to live elsewhere but still want to invest in urban horticulture.

Rate this question:
18.

What is the purpose for which IOB Urban Horticulture can be extended?
- A.
  
  Roof Garden
- B.
  
  Small Orchards
- C.
  
  Flower/Vegetable Garden
- D.
  
  All the above
Correct Answer
D. All the above

Explanation
IOB Urban Horticulture can be extended for the purpose of creating a roof garden, establishing small orchards, and cultivating flower and vegetable gardens. This means that it can be used for all of these purposes simultaneously, allowing for the development of a diverse and multi-functional horticultural space.

Rate this question:
19.

For raising the garden,what should be the availability of the area in the house?
- A.
  
  Independent house having at least 500 s.ft of open space
- B.
  
  For raising roof garden, 500 sq feet of open unencumbered roof space
- C.
  
  1000 sq feet of Space of which 500 open space and 500 roof space
- D.
  
  A & B above
Correct Answer
D. A & B above

Explanation
The correct answer is A & B above. This means that for raising a garden, both an independent house with at least 500 sq ft of open space and 500 sq ft of open unencumbered roof space are required. This implies that the garden can be either on the ground or on the roof of the house.

Rate this question:
20.

What is the project cost for unit area of 1000 sq feet under IOB Urban Horticulture?
- A.
  
  Rs 10000
- B.
  
  Rs 13750
- C.
  
  Rs 20000
- D.
  
  Rs 22500
Correct Answer
B. Rs 13750

Explanation
The project cost for a unit area of 1000 sq feet under IOB Urban Horticulture is Rs 13750.

Rate this question:
21.

What is maximum loan limit for individual and institutions under IOB Urban Horticulture?
- A.
  
  Rs 1 lacs for Individuals
- B.
  
  Rs 10 lacs for Institutions
- C.
  
  A & B above Correct
- D.
  
  None of the above
Correct Answer
C. A & B above Correct

Explanation
The maximum loan limit for individuals under IOB Urban Horticulture is Rs 1 lac, while for institutions it is Rs 10 lacs. Both options A and B are correct as they accurately state the maximum loan limits for both individuals and institutions.

Rate this question:
22.

What is the new product of financing against pledge of jewels for commercial purposes developed by our Bank?
- A.
  
  IOB Gold Card
- B.
  
  IOB Gold Loan
- C.
  
  IOB Alankar
- D.
  
  Commercial Cash Credit against Jewellery
Correct Answer
D. Commercial Cash Credit against Jewellery

Explanation
The new product of financing against pledge of jewels for commercial purposes developed by our Bank is called Commercial Cash Credit against Jewellery.

Rate this question:
23.

What is the margin Under Commercial Cash Credit against Jewellery?
- A.
  
  25% on Stock and 50% on Book Debts
- B.
  
  50% on Market Value of Jewels Pledged
- C.
  
  Advance rate for gold jewellery as fixed by the Bank takes care of margin. Hence, no margin
- D.
  
  None of the above
Correct Answer
D. None of the above
24.

What type of jewellery to be taken for release of Commercial Cash Credit against Jewellery?
- A.
  
  20 ct to 22 ct jewellery could be taken as security
- B.
  
  IOB Gold Coins
- C.
  
  Hallmarked Jewellery
- D.
  
  Precious stones studded KDM Jewellery
Correct Answer
A. 20 ct to 22 ct jewellery could be taken as security

Explanation
For the release of Commercial Cash Credit against Jewellery, 20 ct to 22 ct jewellery can be taken as security. This means that jewellery with a gold purity of 20 carats to 22 carats can be used as collateral for the cash credit. The other options mentioned, such as IOB Gold Coins, Hallmarked Jewellery, and Precious stones studded KDM Jewellery, are not specified as acceptable forms of security in the given information.

Rate this question:
25.

What is quantum of Finance under Commercial Cash Credit against Jewellery?
- A.
  
  Minimum Rs 50,000/= and Maximum Rs 10 lacs
- B.
  
  For limits up to Rs.3 lakhs, the quantum of finance will be the advance value advised by the Bank from time to time multiplied by the net weight of the jewels or Rs.3 lakhs whichever is lower.
- C.
  
  For limits exceeding Rs. 3 lakhs, quantum of finance will be the Advance value multiplied by the net weight of the jewels or 20% of the projected turn over whichever is lower, subject to a maximum of Rs. 10 lakh. Total limit should not exceed 20 % of the projected turn over.
- D.
  
  All the above
Correct Answer
A. Minimum Rs 50,000/= and Maximum Rs 10 lacs

Explanation
The correct answer is "Minimum Rs 50,000/= and Maximum Rs 10 lacs" because this option includes all the information provided in the question. It states that the quantum of finance under Commercial Cash Credit against Jewellery can range from a minimum of Rs 50,000 to a maximum of Rs 10 lakhs. This encompasses the different conditions mentioned in the question, such as the limits based on the advance value and net weight of the jewels, as well as the maximum limit based on projected turnover.

Rate this question:
26.

Fluctuation in gold prices should be taken care of and at any point of time under Commercial Cash Credit Against Jewellery; limit should not exceed the _______ value.

Correct Answer
Advance
advance

Explanation
The correct answer is "advance." In the context of Commercial Cash Credit Against Jewellery, it is important to consider the fluctuation in gold prices. Therefore, the limit of the advance value should not exceed the current value of the jewellery.

Rate this question:

4
27.

What is the special condition regarding appraisal on loans above the value of Rs 3 lacs under Commercial Cash Credit against Jewellery?
- A.
  
  Branch should use the Hitech Carat Meter
- B.
  
  Two Branch Officials should appraise the Jewels in addition to the valuation by appraiser.
- C.
  
  The Joint custodians should appraise the jewels additionally
- D.
  
  Jewels have to be appraised by another appraiser, preferably panel appraiser from the nearby branch
Correct Answer
D. Jewels have to be appraised by another appraiser, preferably panel appraiser from the nearby branch

Explanation
The special condition regarding appraisal on loans above the value of Rs 3 lacs under Commercial Cash Credit against Jewellery is that the jewels have to be appraised by another appraiser, preferably a panel appraiser from the nearby branch. This means that in addition to the appraisal done by the branch officials and the valuation by an appraiser, another appraiser needs to assess the jewels to ensure their value and authenticity.

Rate this question:
28.

Up to Which date Processing Charges are waived in Subha Gruha Housing Finance as a Marketing Offer?
- A.
  
  31.12.2011
- B.
  
  31.03.2011
- C.
  
  30.06.2011
- D.
  
  No Such Offer
Correct Answer
B. 31.03.2011

Explanation
The correct answer is 31.03.2011. This means that Subha Gruha Housing Finance waived processing charges as a marketing offer until March 31, 2011.

Rate this question:
29.

What is the discount in pricing available under Subha Gruha Housing Loans up to Rs 30 lacs?
- A.
  
  25 basis points if the margin is more than 25%
- B.
  
  50 basis points if the margin is more than 25%
- C.
  
  25 basis points if the margin is more than 20%
- D.
  
  50 basis points if the margin is more than 50%
Correct Answer
A. 25 basis points if the margin is more than 25%

Explanation
The discount in pricing available under Subha Gruha Housing Loans up to Rs 30 lacs is 25 basis points if the margin is more than 25%. This means that if the borrower's margin (the difference between the loan amount and the property value) is more than 25%, they will receive a discount of 25 basis points on the loan pricing.

Rate this question:
30.

Who are empowered to consider applications that conform to 40% norms under take home pay under Housing Loans?
- A.
  
  Branch Chief Managers
- B.
  
  Regional Managers
- C.
  
  General Managers
- D.
  
  ED/CMD
Correct Answer
B. Regional Managers

Explanation
Regional Managers are empowered to consider applications that conform to 40% norms under take home pay for Housing Loans. They have the authority and responsibility to review and evaluate loan applications that meet the specified criteria. As higher-level managers, they have the expertise and knowledge to make informed decisions regarding loan approvals based on the applicant's income and other relevant factors. Branch Chief Managers, General Managers, and ED/CMD may also have decision-making authority, but the question specifically mentions Regional Managers as the empowered individuals in this scenario.

Rate this question:
31.

What is the new scheme designed to facilitate our SME borrowers to procure the new/additional machinery without delay or hassle?
- A.
  
  MSME Loan Scheme
- B.
  
  PMEGP
- C.
  
  IOB-BOSCH
- D.
  
  IOB SME Advance Term Loan Sanction Scheme
Correct Answer
D. IOB SME Advance Term Loan Sanction Scheme

Explanation
The IOB SME Advance Term Loan Sanction Scheme is the new scheme designed to facilitate our SME borrowers to procure new or additional machinery without delay or hassle. This scheme aims to provide term loans to SMEs for the purchase of machinery, helping them enhance their production capabilities and grow their businesses. It is specifically tailored to meet the financial needs of SMEs and simplify the loan sanction process, making it easier for them to acquire the necessary machinery for their operations.

Rate this question:
32.

When the need arises for SME units to purchase new/additional machinery?
- A.
  
  Expansion of business
- B.
  
  Securing of new orders on account of increase in demand for their products.
- C.
  
  Due to Unforeseen circumstances
- D.
  
  A & B above
Correct Answer
D. A & B above

Explanation
The need for SME units to purchase new/additional machinery arises when there is an expansion of business or when they secure new orders on account of an increase in demand for their products. Both of these situations indicate a growth in the business and a need for additional resources to meet the increased demand or to support the expansion.

Rate this question:
33.

More often than not, to meet such emergent capital expenditure needs/requirements, What course of action the SME borrowers resort to?
- A.
  
  Sell Existing Machinery
- B.
  
  Resort to Private Borrowing
- C.
  
  Divert Working Capital
- D.
  
  B & C above
Correct Answer
D. B & C above

Explanation
SME borrowers often resort to private borrowing and diverting working capital to meet emergent capital expenditure needs. Private borrowing involves seeking funds from individuals or non-banking financial institutions, while diverting working capital means reallocating funds that were originally intended for day-to-day operations to meet the capital expenditure requirements. Both options provide immediate access to funds without the need to sell existing machinery, which may be essential for business operations.

Rate this question:
34.

Diversion of working capital will result in
- A.
  
  Affecting the The financials of SME Unit
- B.
  
  Erosion of NWC
- C.
  
  Impinge on the Current Ratio
- D.
  
  All the above
Correct Answer
D. All the above

Explanation
Diversion of working capital refers to the misuse or redirection of funds that are meant to be used for day-to-day operations and maintaining liquidity. This can have several negative impacts on the financials of an SME unit. It can affect the financials by reducing the availability of funds for essential activities, leading to a decrease in profits and overall financial stability. It can also result in the erosion of net working capital, which is the difference between current assets and current liabilities, further affecting the financial health of the business. Additionally, diverting working capital can impinge on the current ratio, which is a measure of a company's ability to pay its short-term obligations. Therefore, all the options mentioned above are correct.

Rate this question:
35.

What is the quantum of finance under IOB SME Advance Term Loan Sanction Scheme?
- A.
  
  10% of original cost of existing plant and machinery
- B.
  
  Cost of machinery to be purchased less stipulated margin
- C.
  
  Rs.25 lacs
- D.
  
  Lower of A or B or C
Correct Answer
D. Lower of A or B or C

Explanation
The quantum of finance under IOB SME Advance Term Loan Sanction Scheme is determined by the lower of A or B or C. This means that the amount of finance provided will be the minimum of the following: 10% of the original cost of existing plant and machinery, the cost of machinery to be purchased less the stipulated margin, or Rs.25 lacs.

Rate this question:
36.

What are the main appraisal points under IOB ADVANCE TERM LOAN SANCTION SCHEME?
- A.
  
  DSCR to be worked out
- B.
  
  Sales and profitability should be at par with previous year's level.
- C.
  
  The above two should justify repayment capacity
- D.
  
  All the above
Correct Answer
C. The above two should justify repayment capacity

Explanation
The main appraisal points under IOB ADVANCE TERM LOAN SANCTION SCHEME include working out the Debt Service Coverage Ratio (DSCR) and ensuring that sales and profitability are at par with the previous year's level. These two factors are crucial in justifying the borrower's repayment capacity. Therefore, the correct answer is that all of the above points should be considered in the appraisal process.

Rate this question:
37.

What is the main attraction under the scheme?
- A.
  
  Wherever the amount has already been incurred, the advance could be granted by way of reimbursement
- B.
  
  Overall limits sanctioned including advance term loan should be within the discretionary powers of the sanctioning
- C.
  
  The CGFTMSE cover may be sought for eligible accounts under this scheme.
- D.
  
  All the above
Correct Answer
A. Wherever the amount has already been incurred, the advance could be granted by way of reimbursement

Explanation
The main attraction under the scheme is that the advance can be granted by way of reimbursement for expenses that have already been incurred. This means that if a borrower has already spent money on a project or business, they can apply for an advance to be reimbursed for those expenses. This provides flexibility and support for businesses that may need funding for expenses that have already been made. Additionally, the overall limits sanctioned, including advance term loan, should be within the discretionary powers of the sanctioning authority. The CGFTMSE cover may also be sought for eligible accounts under this scheme.

Rate this question:
38.

Urban/Port Town and Metro Branches cannot open No Frills Account.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Urban/Port Town and Metro Branches can open No Frills Accounts.

Rate this question:
39.

What is IOB C A ?
- A.
  
  The Chartered Accountants employed in IOB Credit Departments are designated as IOB CA
- B.
  
  It is a new credit scheme for practicing Chartered Accountants introduced by IOB
- C.
  
  IOB Credit Analyst
- D.
  
  IOB Credit Appraiser
Correct Answer
B. It is a new credit scheme for practicing Chartered Accountants introduced by IOB

Explanation
IOB C A refers to a new credit scheme introduced by IOB specifically for practicing Chartered Accountants. This scheme is designed to provide credit facilities to Chartered Accountants and is exclusive to them.

Rate this question:
40.

One of the pre conditions to avail the IOB C A Credit facility is that the applicant should not have underwent any Disciplinary action by the institute.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The correct answer is True because one of the preconditions to avail the IOB C A Credit facility is that the applicant should not have undergone any disciplinary action by the institute. This means that if the applicant has faced any disciplinary action, they would not be eligible to avail the credit facility.

Rate this question:
41.

Collateral Security should be insisted for financing under IOB CA
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Collateral security is not necessarily required for financing under IOB CA (Indian Overseas Bank Current Account). The statement suggests that collateral security should be insisted upon for financing, but the correct answer is false, indicating that collateral security is not a mandatory requirement for financing under IOB CA.

Rate this question:
42.

The collateral free limit under IOB C A is
- A.
  
  Rs 1 lac
- B.
  
  Rs 10 lacs
- C.
  
  Rs 50 lacs
- D.
  
  Rs 100 lacs
Correct Answer
B. Rs 10 lacs

Explanation
The collateral free limit under IOB C A is Rs 10 lacs. This means that customers can avail a loan without providing any collateral up to a maximum limit of Rs 10 lacs. This allows individuals to access funds for their financial needs without the requirement of pledging any assets as security.

Rate this question:
43.

All Loans up to 10 lacs under IOB C A should be covered under
- A.
  
  Liability Insurance
- B.
  
  IOB Health Care Plus
- C.
  
  Bima Bachat
- D.
  
  None of the above
Correct Answer
D. None of the above

Explanation
None of the options mentioned in the question are applicable for covering loans up to 10 lacs under IOB C A. Therefore, the correct answer is None of the above.

Rate this question:
44.

Collateral Security to be taken under IOB C A for loans above Rs 10 lacs if not covered under
- A.
  
  CGFTMSE
- B.
  
  IOB Jeevan
- C.
  
  Universal Sompo General Insuarance
- D.
  
  New Bima Gold
Correct Answer
A. CGFTMSE

Explanation
The correct answer is CGFTMSE. Collateral security is required for loans above Rs 10 lacs if it is not covered under CGFTMSE, IOB Jeevan, Universal Sompo General Insurance, or New Bima Gold. This suggests that CGFTMSE is a scheme or policy that provides coverage for loans, potentially eliminating the need for collateral security.

Rate this question:
45.

What is the maximum quantum of finance under IOB C A?
- A.
  
  10 lacs
- B.
  
  50 lacs
- C.
  
  125 lacs
- D.
  
  200 lacs
Correct Answer
C. 125 lacs

Explanation
The maximum quantum of finance under IOB C A is 125 lacs. This means that the maximum amount of finance that can be provided is 125 lacs or 1.25 crore.

Rate this question:
46.

What is the processing charge under IOB C A?
- A.
  
  0.25% of Loan amount with a Minimum of Rs 5000/=
- B.
  
  0.25% of Loan Amount with a Maximum of Rs 5000/=
- C.
  
  Rs 170 per lac
- D.
  
  None of the above
Correct Answer
A. 0.25% of Loan amount with a Minimum of Rs 5000/=

Explanation
The processing charge under IOB C A is calculated as 0.25% of the loan amount. However, there is a minimum charge of Rs 5000, which means that even if 0.25% of the loan amount is less than Rs 5000, the processing charge will still be Rs 5000.

Rate this question:
47.

Under IOB C A , Existing Firm means
- A.
  
  In practice for 3 years and above
- B.
  
  In practice for 5 years and above
- C.
  
  In practice for 7 years and above
- D.
  
  None of the above
Correct Answer
A. In practice for 3 years and above

Explanation
The term "Existing Firm" refers to a business that has been operating for a certain period of time. In this case, the correct answer is "In practice for 3 years and above." This means that the firm has been in operation for at least 3 years. It is important for the firm to have a certain level of experience and stability before it can be considered an existing firm.

Rate this question:
48.

Under IOB CA, if the gross annual income is above Rs 5 lacs & up to Rs 10 lacs, what is the working capital finance that can be extended in urban centre?
- A.
  
  5 lacs
- B.
  
  2 lacs
- C.
  
  1 lac
- D.
  
  0.50 lacs
Correct Answer
B. 2 lacs
49.

Pricing under ETF is linked to
- A.
  
  Fixed throughout the repayment of the loan
- B.
  
  FPCL for lenders
- C.
  
  LIBOR
- D.
  
  Teaser Rate
Correct Answer
A. Fixed throughout the repayment of the loan

Explanation
The correct answer is "Fixed throughout the repayment of the loan." This means that the pricing under ETF (Exchange Traded Fund) remains constant and does not change over the duration of the loan repayment. This provides stability and predictability for both the lenders and borrowers, as they know exactly what the interest rate will be throughout the entire loan term.

Rate this question:
50.

How the working capital finance is assessed under ETF?
- A.
  
  Nayak Committee's Turnover Method
- B.
  
  25% of the turn over subject to the limit not exceeding Area Specific Limit and the forced sale value of immovable property less applicable margin and value less margin in case of liquid securities.
- C.
  
  Cash Budget
- D.
  
  Traditional Method
Correct Answer
B. 25% of the turn over subject to the limit not exceeding Area Specific Limit and the forced sale value of immovable property less applicable margin and value less margin in case of liquid securities.

Explanation
The working capital finance under ETF is assessed using Nayak Committee's Turnover Method. This method considers 25% of the turnover, subject to the limit not exceeding the Area Specific Limit. Additionally, it takes into account the forced sale value of immovable property, subtracting the applicable margin. In the case of liquid securities, the value is reduced by the margin.

Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

Current Version
Mar 14, 2024

Quiz Edited by
ProProfs Editorial Team
Feb 16, 2011

Quiz Created by
Rajatvk

Nr's Model Online Promotion Test For Bank Officers 2011 (Credit Schemes)

What is the name of the scheme which has replaced the Agri Jeep/Bike Schemes?

What is the maximum amount of Education Loan granted for studies in India,that can be classified as Priority Sector advances?

What is the maximum amount of loan granted for foreign studies tha can be classified as Priority Sector Advance?

What is TREAD scehme?

Who are the ultimate beneficiaries of Tread Scheme?

What are the eligibility criteria for IOB-Agri Transport Scheme?

For loans more than Rs 50000/- what is the Collateral security inder IOB Agri Transport Scheme?

What is the new credit scheme introduced to replace the existing Kisan Green Credit Card Scheme ?

What is the eligibility to avail loan under IOB Green Credit?

Under which type of facility, the Agri Green credit scheme is to be sanctioned?

What should be the end use of Agri Green Credit?

What is the security norms under IOB Agri Credit Scheme?

Which type of action cannot be invoked against agricultural land?

What is the maximum reapyment programme under IOB-Agri Green Credit?

What is the latest Agri advances scheme introduced exclusively for urban areas?

Tenants staying in privately rented houses can be financed under IOB Urban Horticulture

Owners can be financed even if they are not staying in the house under IOB Urban Horticulture

What is the purpose for which IOB Urban Horticulture can be extended?

For raising the garden,what should be the availability of the area in the house?

What is the project cost for unit area of 1000 sq feet under IOB Urban Horticulture?

What is maximum loan limit for individual and institutions under IOB Urban Horticulture?

What is the new product of financing against pledge of jewels for commercial purposes developed by our Bank?

What is the margin Under Commercial Cash Credit against Jewellery?

What type of jewellery to be taken for release of Commercial Cash Credit against Jewellery?

What is quantum of Finance under Commercial Cash Credit against Jewellery?

Fluctuation in gold prices should be taken care of and at any point of time under Commercial Cash Credit Against Jewellery; limit should not exceed the _______ value.

What is the special condition regarding appraisal on loans above the value of Rs 3 lacs under Commercial Cash Credit against Jewellery?

Up to Which date Processing Charges are waived in Subha Gruha Housing Finance as a Marketing Offer?

What is the discount in pricing available under Subha Gruha Housing Loans up to Rs 30 lacs?

Who are empowered to consider applications that conform to 40% norms under take home pay under Housing Loans?

What is the new scheme designed to facilitate our SME borrowers to procure the new/additional machinery without delay or hassle?

When the need arises for SME units to purchase new/additional machinery?

More often than not, to meet such emergent capital expenditure needs/requirements, What course of action the SME borrowers resort to?

Diversion of working capital will result in

What is the quantum of finance under IOB SME Advance Term Loan Sanction Scheme?

What are the main appraisal points under IOB ADVANCE TERM LOAN SANCTION SCHEME?

What is the main attraction under the scheme?

Urban/Port Town and Metro Branches cannot open No Frills Account.

What is IOB C A ?

One of the pre conditions to avail the IOB C A Credit facility is that the applicant should not have underwent any Disciplinary action by the institute.

Collateral Security should be insisted for financing under IOB CA

The collateral free limit under IOB C A is

All Loans up to 10 lacs under IOB C A should be covered under

Collateral Security to be taken under IOB C A for loans above Rs 10 lacs if not covered under

What is the maximum quantum of finance under IOB C A?

What is the processing charge under IOB C A?

Under IOB C A , Existing Firm means

Under IOB CA, if the gross annual income is above Rs 5 lacs & up to Rs 10 lacs, what is the working capital finance that can be extended in urban centre?

Pricing under ETF is linked to

How the working capital finance is assessed under ETF?