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Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q79: The PM Vishwakarma Scheme provides collateral-free enterprise development loans to traditional artisans. What is the maximum loan amount available in the Second Tranche, and what is the fixed concessional interest rate charged to the beneficiary?

A
1 Lakh rupees at 4 percent interest
B
2 Lakh rupees at 5 percent interest
C
3 Lakh rupees at 7 percent interest
D
2 Lakh rupees at 8 percent interest
✅ Correct Answer: B
The Second Tranche loan limit is 2 Lakh rupees, and the interest rate is fixed at 5 percent per annum.
The scheme offers a total credit support of 3 Lakh rupees.
The First Tranche offers 1 Lakh rupees with a repayment tenure of 18 months.
The Second Tranche offers 2 Lakh rupees with a repayment tenure of 30 months.
The second tranche is available only to skilled beneficiaries who have repaid the first tranche and maintained a standard loan account.
The Government of India provides an interest subvention cap of 8 percent to banks to maintain the borrower's effective rate at 5 percent.