Module: General Practice
Q154: Consider the following statements regarding the PMEGP Subsidy Lock-in:
Assertion (A): The Margin Money (Subsidy) released by KVIC is kept in a separate Term Deposit Receipt (TDR) in the name of the beneficiary for a lock-in period of 3 years.
Reason (R): This lock-in period ensures that the unit remains functional and the loan is not merely adjusted against the subsidy immediately, preventing "fly-by-night" operators.
Reason (R): This lock-in period ensures that the unit remains functional and the loan is not merely adjusted against the subsidy immediately, preventing "fly-by-night" operators.
✅ Correct Answer: A
🎯 Quick Answer:
Both are true, and R explains A.Structural Breakdown: 1. Mechanism: The subsidy is not given to the borrower as cash.
It is held by the bank in a Term Deposit Receipt (TDR). 2. Interest: No interest is paid on this TDR, and no interest is charged on the loan amount equal to the TDR.
3. Adjustment: Only after successful physical verification of the unit after 3 years, the TDR is liquidated and adjusted against the loan principal.