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Raghavan R Chief Manager Technology Centre, Chennai
Strictly for internal circulation only
Model questions on Lakshmi Loan products This questionnaire contains 191 questions on 13 products The Answer key is given at the end. I.
Lakshmi Business Credit (LBC):
{LVB/102-05.05-MISC/Cir.3/134/14-15 03.06.2014, LVB/102-06.03-MAIN/Cir.4/105/15-16 21 May 2015 & LVB/102-05-MISC/Cir6/216/15.16 dated 24.6.2015, LVB/102.05.MISC.34/511/17-18 dated 08.03.2018 & LVB/102-05-MISC/Cir.28/294/18-19 Dated 19.11.2018} 1. Which of the following types of customers is not eligible to avail LBC facility: a. Petrol dealer b. Share/stock brokers c. Proprietary firm d. Private Limited Company 2. To be eligible for LBC, the business enterprise (i) should be in business and (ii) earning profit for: a) 4 years & 3 years b) 2 years & 2 years c) 3 years & 2 years d) No such requirement 3. For arriving the eligible quantum of loan under LBC Scheme, the following 3 criteria are verified: a) Capital, Profit and Security b) Capital, Turnover, Coll. security d) Subordinated debt, Turnover, Coll. Security. e) Capital, Security and Key person’s Age. 4. Maximum quantum that can be sanctioned under LBC in Semi-urban area branches: a. Rs.1.00 crore b. Rs.2.00 crore c. Rs.4.00 crore d. Rs.5.00 crore
5. LBC is not available for the following purpose: a. To construct the business premises b. For build up of current assets c. for advance payment to suppliers d. goods in transit 6. The following are the criteria verified for arriving at the eligible quantum of LBC limit: a. 35% of actual turnover, 4 times capital funds, appropriate collateral security. b. 25% of actual turnover, 5 times capital funds, 100% collateral security c. 20% of projected turnover, 4 times capital funds, Permissible collateral, as per LTV norms. d. 20% of projected turnover, 5 times of capital funds, 125% collateral security. 7. LBC is not permitted in Rural Branches: a. True b. False. 8. The following is not an acceptable security under LBC: a. Commercial land and building b. Industrial Land and building c. Self occupied residential building d. Agricultural land 9. For LBC limits sanctioned in semi urban areas, if the loan quantum is more than Rs.2.00 crore, at least 2 coll. Securities are to be obtained. a. True b. False 10. In the case of self-occupied commercial buildings, the value of security that can be accepted is ____% of the forced sale value. a. b. c. d.
50% 60% 65% 55%
11. In case of vacant lands and let out commercial property, the margin requirement is a. b. c. d.
40% 50% 60% 45%
12. In case of un-approved buildings offered as security, a. b. c. d.
It can be accepted as eligible security. Only land value can be accepted Only land value to be accepted provided land has approval Cannot be accepted.
13. One of the following types of properties is eligible as security for LBC limits a. b. c. d.
Agricultural land with standing paddy crop Residential building in rural area with panchayat approval Unapproved vacant land Self-occupied residential cum commercial building in semi-urban area.
14. Property belonging to one of the following persons is not eligible security for LBC: a. Residential building owned by proprietor jointly with his wife. b. Commercial building owned by proprietor’s father c. Approved vacant site in the name of the close friend of the proprietor who is also a distant relative. d. Residential land and building belonging to son of the proprietor. 15. What is the maximum age of the building property that can be accepted as security for LBC limits: a. b. c. d.
50 years 45 years 40 years 25 years
16. In respect of securities with huge value obtained for LBC limits, whether cross collateralization is permitted ? a. Yes b. No. 17. The maximum internal credit rating acceptable for considering LBC proposals is: a. b. c. d.
LVB3 LVB4 LVB5 LVB6
18. In respect of LBC limits, the frequency of unit visit is stipulated as a. Quarterly b. Monthly c. Monthly, for limits in excess of Rs.1 cr and quarterly, for others.
d. Quarterly for limits in excess of Rs.1 crore and Monthly for limits up to Rs.1 crore. 19. In the case of LBC limits, drawing power is arrived based on a. b. c. d.
Monthly stock statement Monthly turnover Quarterly turnover No drawing power need be fixed.
20. In the case of LBC limits, GST returns are to be obtained a. b. c. d.
Once in 3 months Once in 6 months Annually Need not be obtained.
21. To be eligible for enhancement in the LBC limit, the minimum transaction to be routed through our operative CASA account is a. 100% b. In excess of 100% c. 50% d. 80% and above. 22. For LBC limits, Stock and Receivables Audit (SRA) is to be conducted at the following intervals: a. b. c. d.
Annual SRA is waived for LBC limits. Once in three years At the time of sanction and after that, every year.
23. Excess limit in LBC limit can be permitted a. b. c. d.
No excess is permitted 10% of the limit or Rs.25 lakhs whichever is lower 20% of the limit without ceiling No such restriction regarding limit or period.
24. Excess in LBC limits can be permitted a. For maximum of 30 days and maximum 3 times in a year. b. No excess is permitted c. For maximum 3 months at a time without restriction on number of occasions in a year. d. At the discretion of the sanctioning authority.
2. Lakshmi Commercial Vehicle Loan (term loan): LCVL: LVB/102-05-MISC/Cir.14/548/14-15 dt.22.11.2014; LVB/102-05-MISC/Cir.9/69/18-19 dated 10 May 2018. 1. Lakshmi Commercial Vehicle Loan (LCVL) is available for purchase of a. b. c. d.
Multi-axel vehicles Transport buses Poclain units All the above.
2. Maximum quantum of finance under LCVL in respect of partnership firms is a. Rs.5 crores per borrower b. Rs.4 crores per borrower c. Rs.3 crores per borrower d. Rs.15 crores per borrower. 3. Maximum quantum of finance under LCVL in respect of Limited Companies is a. b. c. d.
Rs.5 crores per borrower Rs.4 crores per borrower Rs.3 crores per borrower Rs.15 crores per borrower.
4. Margin stipulated for LCVL is a. b. c. d.
10% of the cost of vehicle including body building 15% of the cost of vehicle including body building 25 % of the cost of vehicle including body building No margin required.
5. Processing fee applicable for LCVL is: a. 2% of loan amount, maximum Rs.1.00 lakh b. 1% of the loan amount with maximum of Rs.50,000/c. 1.10% of the loan amount without maximum ceiling d. 0.50% of the loan amount with maximum of Rs.10,000/6. Collateral security is insisted for LCVL limits of a. Above Rs.1.00 crore b. Above Rs.50 lakhs c. Above Rs.25 lakhs d. No collateral security is required.
7. The maximum repayment period and holiday period for LCVL is a. b. c. d.
120 months & 6 months 72 months & 3 months 84 months & 3 months 60 months & 6 months
8. Regional Credit Committee (RCC) at the ROs have powers to sanction LCVL up to a. b. c. d.
Rs.9.00 crore Rs.5.00 crore Rs.3.00 crore No powers
3. Lakshmi Home Loan (LHL): {LVB/102.05.05-MAIN/Cir.29/863/11-12/03.01.2012 & LVB/102-05-MAIN/Cir.3/448/15-16} 1. The following applicant is not eligible to avail loan under LHL a. Individual doing textile trading business b. Doctor c. a private limited company to purchase house to provide staff quarters d. a Salaried employee 2. NRIs and HUF are not eligible to borrow under LHL a. True b. False 3. LHL is available in the following forms a. as a Term Loan b. as an overdraft c. both the above. 4. Purposes for which LHL can be availed include a. Construction/purchase of house/flat, additional construction, additions/ alterations/repairs and purchase of approved plots b. Construction/Purchase of a commercial complex c. Construction of a hospital with doctor’s residence d. Purchase of a 50 years old house. 5. The co borrower in LHL can be the applicant’s: a. b. c. d.
Business partner Father in law Brother Daughter in law
6. In the case of LHL for purchase of approved plots, as per the declaration to be obtained from the borrower, within which period the house has to be constructed on the plot a. b. c. d.
No such requirement 5 years 2 years 3 years
7. Salaried individuals are eligible for LHL up to
a. b. c. d.
50 times of their net monthly income 5 times of their net average annual income 60 times of their net monthly income No such ceiling.
8. For Business/self-employed/agriculturists, the eligible LHL is arrived based on: a. b. c. d.
60 times of their net monthly income 5 times of their net average annual income 6 times of their net average annual income No such ceiling.
9. In respect of LHL, in all types of eligible borrowers, the EMI of the loan should not exceed a. b. c. d.
60% of net monthly income. 50% of the net monthly income. 25% of the net monthly income. 1/3rd of net monthly income.
10. Minimum and maximum loan quantum under LHL in semi urban areas is a. b. c. d.
Rs.1.00 lakh&Rs.1.50 crore Rs. 2.00 lakhs & Rs.2.00 crore Rs.2.00 lakhs & Rs.1.00 crore No ceiling.
11. Minimum and maximum loan quantum under LHL in Metro areas is a. b. c. d.
Rs.5.00 lakh & Rs.1.50 crore Rs. 3.00 lakhs & Rs.2.00 crore Rs.2.00 lakhs & Rs.1.00 crore No ceiling.
12. Minimum and maximum loan quantum under LHL in Urban areas is a. b. c. d.
Rs.5.00 lakh & Rs.2.00 crore Rs. 3.00 lakhs & Rs.1.50 crore Rs.2.00 lakhs & Rs.1.00 crore No ceiling.
13. Minimum and maximum loan quantum under LHL in Rural areas is a. b. c. d.
Rs.1.00 lakh & Rs.1.00 crore Rs. 3.00 lakhs & Rs.1.50 crore Rs.1.00 lakhs & Rs.50.00 lakhs No ceiling.
14. For renovation/repairs the maximum loan quantum under LHL is restricted to a. 75% of the estimated cost or 40% of the value of the property mortgaged or Rs.30 lacs, whichever is lower. b. 75% of the estimated cost or 40% of the value of the property mortgaged or Rs.30 lacs, whichever is higher. c. 50% of the estimated cost or 50% of the value of the property mortgaged or Rs.50 lacs, whichever is lower. d. 75% of the estimated cost or 50% of the value of the property mortgaged or Rs.30 lacs, whichever is lower. 15. Cost of land/plot that can be included in the project cost is restricted to a. b. c. d.
1/3rd of the project cost with a margin of 20% ½ of the project cost with a margin of 20% 10% of the project cost without ceiling 25% of the project cost with a margin of 20%
16. In case of LHL for purchase of old houses, the maximum age of the building can be a. b. c. d.
15 years 20 years 25 years 40 years
17. Margins for LHL in respect of loans up to Rs.75 lakhs and above Rs.75 lakhs are a. b. c. d.
20% & 25% of the project cost 25% & 30% of the project cost 15% & 25% of the project cost No margin required.
18. Margins for LHL for additional construction/alterations/repairs:
a. b. c. d.
50% of the estimated cost 30% of the estimated cost 25% of the estimated cost 10% of the estimated cost.
19. Margins for LHL for purchase of approved plots: a. e. f. g.
25% of the estimated cost 30% of the estimated cost 35% of the estimated cost 10% of the estimated cost.
20. Margins for LHL for purchase of old houses of age (i) below 10 years; (ii) 10-15 years and (iii) above 15 years up to 20 years are: a. b. c. d.
20% , 25% and 30%. 25% , 35% and 45%. 25% , 30% and 40%. 25% , 30% and 40%.
21. Maximum repayment period, including holiday period, under LHL for individuals other than salaried individuals is: a. b. c. d.
180 EMIs or borrower attaining age of 65 whichever is lower. 200 EMIs or borrower attaining age of 65 whichever is lower. 150 EMIs or borrower attaining age of 65 whichever is lower. 240 EMIs or borrower attaining age of 70 whichever is lower.
22. Maximum repayment period, in the case of LHL for repairs/renovation/purchase of plots is a. b. c. d.
50 months without holiday period 120 months without holiday period 60 months without holiday period 48 months without holiday period
23. Maximum repayment period,including holiday period, in the case of LHL for salaried individuals is a. As applicable to others, with a stipulation that the repayment should end 3 months prior to the date of retirement.
b. As applicable to others, with a stipulation that the repayment should end 6 months prior to the date of retirement. c. As applicable to others d. As applicable to others, or date of retirement whichever is earlier. 24. Maximum holiday period for construction of houses is a. b. c. d.
24 months or till completion of construction, whichever is lower 12 months or till completion of construction, whichever is lower 6 months or till completion of construction, whichever is lower 18 months or till completion of construction, whichever is lower
25. In respect of LHL-OD, which of the following facilities are available? a. b. c. d.
Group insurance ATM Debit Card, Cheque Book, Net Banking, etc. Priority sanction for other loans Reduction in processing fee.
26. In respect of LHL-OD, monthly Drawing Power (DP) will be reduced by EMI paid. a. True b. False 27. LHL-Top up loan is available for the following purpose/s: a. b. c. d.
Personal expenditures Business needs Investment purposes All the above.
28. The eligibility for LHL Top up loan is arrived based on a. Good track record of repayment for not less than 12 months in the existing LHL account of the borrower. b. Market value of the property c. Repayment capacity of the borrower d. All the above.
29. The maximum age of the borrower in respect of the LHL Top-up loan can be a. 70 years b. No cap. However, loan tenure cannot be beyond the maturity date of the LHL against which the Top up loan is considered. c. 65 years d. No maximum age prescribed. 30. Maximum loan that can be sanctioned under LHL-TU is a. b. c. d.
Rs.50 lakhs Rs.75 lakhs Rs.25 lakhs Rs.10 lakhs
31. The loan tenor for the LHL-TU is a. b. c. d.
15 years 10 years 10 years or residual period of the existing LHL, whichever is lower. 7 years.
32. LTV in respect of LHL-TU loan is a. b. c. d.
75% including existing LHL. 80% including existing LHL. 80% for LHL-TU 60% for LHL-TU
4. Lakshmi Loan against Properties–LLAP –Term Loan: LVB/102.05-MAIN/Cir.7/301/14-15 28 July 2014; 10/395/14-15 dated 01.09.2014; 2/75/1516 dated 08.05.2015, 28/417/17-18 dated10.01.2018 1. LLAP is not applicable for the following set of applicants: a. b. c. d.
Salaried individuals, professionals, agriculturist, partnership firm, Limited Co. Non Resident Indians Politicians, lawyers and film actors. Both (b) & (c)
2. Minimum quantum of loan prescribed under LLAP-TL is a. b. c. d.
Rs.1.00 lakh Rs.10.00 lakhs Rs.5.00 lakhs No minimum is prescribed.
3. Purposes for which LLAP-TL is not available include a. b. c. d.
Speculative purposes Medical expenses Activities listed out in the negative list of our Lending Policy. both (a) and (c)
4. Maximum Repaymentpermitted under LLAP-TL scheme is a. b. c. d.
Maximum 120 EMIs without holiday period. Maximum 60 EMIs without holiday period. Maximum 180 months including holiday period Maximum 84 months without holiday period.
5. Maximum age of the borrower at the time of closure of the LLAP-TL in case of other than salaried individuals is a. b. c. d.
65 years. 70 years. 75 years. 80 years.
6. In the case of individuals, the eligible quantum of loan is arrived based on a. b. c. d.
10 times of net average annual income 7 times of net average annual income 5 times of net average annual income 5 times of gross annual income.
7. In the case of companies, the eligible quantum of loan is arrived based on a. b. c. d.
25% of annual turnover 25% of gross profit 5 times of annual turnover 2 times of annual turnover
8. Clubbing of income of the following person is permitted in the case of LLAP-TL : a. b. c. d.
Close family friend Colleague Sister None of the above.
9. Margin required in the case of LLAP-TL of above Rs.15 lakhs is a. b. c. d.
40% 35% 50% 20%
10. Processing fee prescribed for LLAP-TL is a. b. c. d.
0.40% 0.50% 0.25% 1.10%
11. Minimum Collateral security coverage should be. a.100% b. as per Lending Policy c. 167% d. 150%
12. Property not eligible as coll. Security for LLAP-TL is a. Residential land and building b. Hospitals c. commercial property d. Approved vacant land. 13. In the case of eligible building property, the maximum age of the property permitted is: a. b. c. d.
25 years 20 years 40 years 30 years
14. If the building property offered as security does not have approval, a. The same cannot be accepted as security b. If it is self-occupied for more than 3 years with latest 3 years’ property tax paid receipts, it can be accepted. c. Permission from sanctioning authority is required for accepting. d. If it is located in a prime area, it can be accepted.
5. Lakshmi Business Term Loan (LBTL) (Modification of LLAP for MSME Sector) Ref: LVB/102-05-MAIN/Cir.7/293/18-19 19 November 2018
1. Lakshmi Business Term Loan (LBTL) is introduced as a replacement for a. b. c. d.
LBC Term Loan Lakshmi Business Credit Lakshmi Loan Against Property for MSME Sector Lakshmi Loan Against Property for personal purposes
2. Purpose for which Lakshmi Business Term Loan (LBTL) can be sanctioned is
a. b. c. d. 3.
For personal purposes of the promoters of the business For construction of business premises For Business purposes, within 4 KM radius of the sourcing branch For investment in capital
To be eligible for loan under Lakshmi Business Term Loan (LBTL), the following
criteria need to be fulfilled:
a. b. c. d.
The units Current Ratio should be 2:1 DSCR based on latest audited balance sheet should be at least 1.50. The Debt Equity ratio should be less than 3:1 No such requirement
4. The maximum and minimum amount that can be sanctioned under LBTL area. a. b. c. d.
Rs.100 lakh and Rs.500.00 lakh Rs.50 lakh and Rs.500 lakh Rs.100 lakh and Rs.300 lakh Rs. 25 lakh and Rs.500 lakh
5. LBTL limits are not permitted in a. b. c. d.
Metro Branches Urban Branches Rural Branches Semi-urban Branches
6. Maximum Loan amount under LBTL is restricted in respect of borrowers a. Who do not have track record of term loan repayment or if the previous loan is closed 6 months before applying for LBTL. b. Who is availing other loans from our Bank c. Who do not have track record of more than 5 years d. No such restriction. 7. If the security offered for LBTL is a let out commercial property, the exposure is to be restricted to a. b. c. d.
Rs.1.00 crore Rs.3.00 crore Rs.5.00 crore No such restriction.
8. The maximum repayment period that can be permitted for LBTL is a. b. c. d.
60 months 180 months 120 months 24 months
9. For Lakshmi Business Term Loan (LBTL), the LTV based on Force Sale Value is restricted to 45% in respect of the following type of property: a. b. c. d.
Self occupied residential property Vacant Land & let out commercial property Industrial property Agricultural land
10. For LBTL, the LTV based on Force Sale Value in respect of leased out/rented out/vacant residential building is: a. b. c. d.
50% 55% 60% 65%
11. In respect of old buildings offered as security for LBTL, the age of the property should not be more than a. b. c. d.
40 years at the time of application. 25 years at the time of maturity of the loan 15 years 50 years at the time of application.
12. In LBTL, for obtaining second valuation report, the maximum security value and loan amount are stipulated as: a. b. c. d.
Rs.1.00 crore & Rs.3.00 crore Rs.2.00 crore & Rs.1.00 crore Rs.1.00 crore & Rs.2.00 crore No such stipulation.
13. If the collateral security value is huge and the coverage for Lakshmi Business Term Loan (LBTL) is fully covered, the residual portion of the collateral security can be considered for other loans also a. b. c. d.
Only to the extent of 50% of the residual value No cross collateralization is permitted Remaining value of the collateral security can be extended for other loans. Remaining value of collateral security can be extended only for Lakshmi Business Credit.
6. Lakshmi Loan against Shares (LLAS): 1. Lakshmi Loan Against Shares (LLAS) can be extended against pledge of shares of the following category: a. BSE top 200 shares only b. NSE 50 Shares only c. All listed shares d. Our Bank shares 2. Lakshmi Loan Against Shares (LLAS) can be extended through all our branches a. True b. False 3. For availing loan under Lakshmi Loan Against Shares (LLAS), the shares should be a. b. c. d.
In physical form duly transferred in the name of the Bank] In demat form duly marking our pledge Both physical and demat forms As per the decision of the Branch Manager
6. The minimu m & maximum loan that can be sanctioned under Lakshmi Loan Against Shares (LLAS) is a. b. c. d.
Rs.10.00 lakhs & Rs.100.00 lakhs Rs.10.00 lakhs & Rs.50.00 lakhs Rs.2.00 lakhs & Rs.25.00 lakhs Rs.1.00 lakh & Rs.20.00 lakhs
7. Lakshmi Loan Against Shares (LLAS) can be sanctioned against the following securities also a. b. c. d.
Mutual Funds, Exchange Traded Funds and Debentures Mutual Funds only Debentures only NSCs, KVPs, LIPs etc.
8. Type of limit that can be sanctioned under Lakshmi Loan Against Shares (LLAS) is a. b. c. d.
Working capital overdraft Term loan repayable in instalments Demand Loan repayable at the end of the loan tenor In a combination of the above
9. The restriction in age in respect of borrowers under Lakshmi Loan Against Shares (LLAS) is prescribed as
a. b. c. d.
Between 18 years and 60 years Between 21 years and 75 years Between 18 years and 65 years No restriction
10. Lakshmi Loan Against Shares (LLAS) is not available for a. b. c. d.
Unlisted shares Our Bank’s shares Other than BSE 200 shares All the above
7. Lakshmi Personal Vehicle Loan: (LPVL) 1. Lakshmi Personal Vehicle Loan (LPVL) can be availed by a. b. c. d.
By any type of individuals for purchasing a vehicle for their personal use By a company for purchasing a vehicle for use of its MD. By a partnership firm for purchasing a vehicle for their business use. Both (a) & (b)
2. Lakshmi Personal Vehicle Loan (LPVL) is available for a. b. c. d.
Purchase of new & used four wheelers and two wheelers Purchase of new & used four wheelers and new two wheelers Purchase of new four wheelers and new two wheelers Purchase of commercial vehicles also
3. In respect of loans for purchase of used four wheelers under Lakshmi Personal Vehicle Loan (LPVL), the vehicle can be a. b. c. d.
2 years old 10 years old 4 years old Old vehicles are not permitted.
4. In the case of individuals, the minimum annual income for becoming eligible for purchase of 4-wheelers is a. b. c. d.
Rs.1,20,000/Rs.2,00,000/Rs. 1,50,000/No such requirement
5. In the case of Lakshmi Personal Vehicle Loan (LPVL), the income of the following persons can be clubbed with the income of the applicant for arriving at the eligibility: a. spouse/other family members, subject to verification of sources. b. spouse/other family members and close friends may be included subject to verification of sources. c. Business Partners. d. Directors of the company. 6. As regards repaying capacity of the applicants under Lakshmi Personal Vehicle Loans (LPVL), the applicant’s a. Net annual income should be twice the annual repayment under LPVL b. Net monthly income should be at least twice the monthly instalment fixed for the loan.
c. DSCR should work out to 1.50 d. The business of the applicant should earn sufficient income to repay. 7. For arriving at the eligibility for Lakshmi Personal Vehicle Loan (LPVL), the following income can be taken in to account with documentary evidence: a. b. c. d.
Rent Dividend Interest & commission All the above
8. Minimum and maximum age of the applicant under Lakshmi Personal Vehicle Loan (LPVL) is stipulated as: a. b. c. d.
21 years & 60 years 21 years & 65 years 18 years & 60 years None of the above.
9. For purchase of new 4-wheeler, the maximum loan amount under Lakshmi Personal Vehicle Loan (LPVL) is a. b. c. d.
75% of the cost of the vehicle including road tax, insurance & accessories 85% of the cost of the vehicle including road tax, insurance & accessories 90% of the cost of the vehicle including road tax, insurance & accessories 80% of the cost of the vehicle including road tax, insurance & accessories
10. Maximum loan amount for purchase of used four wheelers permitted under Lakshmi Personal Vehicle Loan (LPVL) is a. b. c. d.
60% of cost of the vehicle with a maximum of Rs.10 lakhs 60% of cost of the vehicle with a maximum of Rs.15 lakhs 75 % of cost of the vehicle with a maximum of Rs.10 lakhs 85% of cost of the vehicle with a maximum of Rs.10 lakhs
11. Maximum loan amount for purchase of new two wheelers permitted under Lakshmi Personal Vehicle Loan (LPVL) is a. b. c. d.
Rs.1.20 lakhs Rs.2.00 lakhs Rs.1.50 lakhs Rs.3.00 lakhs
12. Personal Guarantee from a person with suitable net worth / income is a must for 4 wheeler loans (LPVL). a. True b. False
13. Maximum repayment for LPVL for purchase of new four wheelers is a. b. c. d.
60 months 72 months 84 months 36 months
14. Maximum repayment for LPVL for purchase of used four wheelers is a. b. c. d.
60 months 36 months 84 months 72 months
15. Maximum repayment for LPVL for purchase of new two wheelers is a. b. c. d.
60 months 72 months 84 months 36 months
8. Lakshmi Commodity Power – LCP: 1. Why we should have tie up with some of the collateral security management organizations for warehouse financing through Lakshmi Commodity Power (LCP)? a. To reduce the burden of Branch Manager b. To mitigate various risks involved in such lending like operational or performance risk, monitoring of price fluctuations on an on-going basis, close follow up of margin calls, timely inspections, distress sale, legal or litigation risk etc. c. To reduce the burden of Sanctioning Authority d. To help the customer who do not have own go-downs. 2. The eligible borrowers under the Lakshmi Commodity Power scheme is a. b. c. d.
Farmers Commission Agents Proprietary Concerns All the above.
3. Purpose for which Lakshmi Commodity Power (LCP) can be sanctioned includes a. b. c. d.
Working Capital Any purpose, including business as well as personal For construction of Cold Storage facility General corporate purpose
4. Margin stipulated for loans under Lakshmi Commodity Power (LCP) is a. b. c. d.
50% 25% 35% 40%
5. The following commodity is eligible under Lakshmi Commodity Power (LCP) a. b. c. d.
Agricultural products (Cotton, Maize, paddy, areca nut, Green Gram, etc.) Automobile products Electronic goods Edible Oil items
6. Maximum storage period of commodity in Lakshmi Commodity Power is a. 24 months b. 12 months or maximum storage period as specified by collateral manager for the respective commodity, whichever is less.
c. 6 months or maximum storate period for the commodity, whichever is less. d. 18 months. 7. Collateral Management fee and Processing fee for loans under Lakshmi Commodity Power (LCP) are a. b. c. d.
0.75% p.a. and 0.50% 0.50% p.a. and 0.50% 1.10% p.a. and 1% 0.60% p.a. and 0.60%
8. For loans under Lakshmi Commodity Power (LCP), the securities are a. Pledge of warehouse receipt and third party guarantee b. Pledge of warehouse receipt with suitable collateral security c. Pledge of warehouse receipt, suitable collateral security and a third party guarantee from a worthy person. d. Pledge of warehouse receipt 9. The mode of payment under Lakshmi Commodity Power (LCP) is a. Bullet payment along with interest at the end of loan period without any holiday period b. Monthly instalments c. Principal at the end of the period and interest on monthly basis d. In EMIs 10. Maximum loan that can be sanctioned under Lakshmi Commodity Power (LCP) is a. b. c. d.
Rs.200.00 lakhs Rs.300.00 lakhs Rs.500.00 lakhs Rs. 400.00 lakhs
11. Under Lakshmi Commodity Power (LCP) in one customer ID a borrower can avail only one loan for different commodities dealt by him a. True b. False 12. Under Lakshmi Commodity Power (LCP), loan can be repaid partially and partial withdrawal of the pledged goods is permitted a. True b. False
9. Lakshmi Rental Loan (LRL): 1. The following type of property is not considered as eligible for extending loan under Lakshmi Rental Loan (LRL): a. b. c. d.
Commercial land and building given on lease Residential property leased out Posh residential bungalow in rural area Building complex rented out to multinational companies
2. Eligible borrowers who can avail Lakshmi Rental Loan (LRL) include: (select appropriate answer) : a. b. c. d.
Trusts Partnership firms Public & private limited companies All the above
3. In respect of old commercial or residential building against which Lakshmi Rental Loan (LRL) is applied for, the maximum age of the building is stipulated as: a. b. c. d.
40 years 30 years 25 years 15 years
4. Eligible purpose for which Lakshmi Rental Loan (LRL) can be sanctioned, do not include: a. b. c. d.
For investment in business or general corporate purposes Education purposes of children For trading in shares and securities. For conducting family marriage.
5. In respect of reputed firms as tenants in the buildings, against which Lakshmi Rental Loan (LRL) is considered, it is stipulated that : a. The firm (tenant) should be in existence for at least 3 years and should be profit making. b. The firm should be known to the Bank. c. The firm should profit making for at least one year. d. The firm should be in existence of more than 5 years and should have earned profit for at least one year. 6. Eligible tenants in the buildings against which Lakshmi Rental Loan (LRL) is considered, does not include a. Permanent employees of Government Departments
b. Permanent employees of Banks c. Employees of profit making reputed Organizations, Firms and Companies. d. Agriculturists holding 10 acres of land. 7. Maximum and minimum quantum of loan that can be availed under Lakshmi Rental Loan (LRL) are a. b. c. d.
Rs.10,000/- and Rs.5.00 crore Rs.50,000/- and maximum – as per eligibility Rs.1.00 lakh and Rs.10.00 crore None of the above
8. While arriving net monthly rent is arrived after deducting a. b. c. d.
25% margin TDS/GST and advance amount if any TDS/GST at the prevailing rate and minimum of 20% for other expenses None of the above
9. For arriving eligible loan amount under Lakshmi Rental Loan (LRL), the maximum lease period including future extended period cannot exceed a. b. c. d.
60 months 48 months 84 months 120 months
10. The eligible quantum of loan under Lakshmi Rental Loan (LRL) is arrived a. After deducting TDS/GST and expenses to the extent of 20%, the net monthly rent is eligible loan amount. b. After deducting TDS/GST and Expenses (minimum 20%) and by discounting the net monthly rent so arrived by the rate of interest chargeable. c. By totaling the rent receivable for the entire period, the eligible loan amount is arrived and EMI is arrived based on the interest rate applicable to the loan. d. By arriving DSCR and ensuring that the same does not go below 1.50. 11. The rate of interest chargeable for Lakshmi Rental Loan differs for each type of tenants in the building a. True b. False.
12. In respect of individual borrowers availing loan under Lakshmi Rental Loan (LRL), the maximum repayment can be a. 120 months. b. Remaining lease period or the borrower attaining the age of 75 years, whichever is early. c. Remaining lease period or the borrower attaining the age of 65 years, whichever is early. d. Remaining lease period. 13. In case of tripartite agreement under Lakshmi Rental Loan (LRL), the following parties are involved: a. b. c. d.
Borrower, tenant and tenant’s banker Borrower, tenant and our Bank Borrower-owner, tenant and our Bank Borrower, his/her legal heirs and our Bank
14. The following document ensures receipt of rent by the Bank (in the borrower’s account) from the tenant a. Undertaking from the tenant b. Undertaking by the tenant’s bank to remit rent to our Bank every month by debiting the tenant’s account with them. c. Power of attorney executed by the borrower in favour of our Bank d. Demand Promissory Note executed by the borrower. 15. Lakshmi Rental Loans (LRL) come under a. b. c. d.
Priority Sector Exposure(PSE) Housing Sector Exposure (HSE) MSME Sector Commercial Real estate Exposure (CRE)
16. To be eligible to avail Lakshmi Rental Loan, the minimum rent, net of TDS/GST & maintenance expenses, should be a. b. c. d.
Rs.10,000/Rs.2,500/Rs.5,000/Rs.1.00 lakh
10. Lakshmi Easy Loan (LEL): (Cir. No. 20/436/11-12 dated 25.08.2011 and Credit/Cir.No.34/2005-06 dated 4.10.2005.) 1. Lakshmi Easy Loan (LEL) can be sanctioned against the following securities a. b. c. d.
Shares and debentures Mutual fund units National Savings Certificates/Kisan Vikas Patra/Life Insurance Policies Bank’s own deposit
2. Minimum and maximum loan that can be sanctioned under Lakshmi Easy Loan (LEL) product are; a. b. c. d.
Minimum Rs.1.00 lakh & Maximum: Rs.10.00 lakhs Minimum Rs.0.10 lakh & Maximum: No Cap. Minimum Rs.0.25 lakh & Maximum: Rs.100.00 lakhs Minimum Rs.1.00 lakh & Maximum: No Cap.
3. The mode of charging of securities in case of Lakshmi Easy Loan (LEL) are: a. Transfer of security in the case of NSC/KVP and Assignment in the case of LI Policies b. Lien on NSC/KVP and LI Policies c. Pledge of NSC/KVP/LI Policies d. Hypothecation of NSC/KVP/LI Policies 4. In the case of Life Insurance Policies, the value that can be reckoned for arriving at the eligible loan amount under Lakshmi Easy Loan (LEL) is a. b. c. d.
Sum assured. Total premium payable for the entire period of the policy As per the requirement of the applicant subject to keeping required margin. Surrender value of the policy as on a recent date.
5. In the case of NSCs/KVPs, the value that can be reckoned for arriving at the eligible loan amount under Lakshmi Easy Loan (LEL) is a. b. c. d.
Face value of the certificate Maturity value of the certificate Accrued value as on a recent date. As per the requirement of the applicant subject to keeping required margin.
6. Lakshmi Easy Loan (LEL) can be sanctioned as a. b. c. d.
Only demand Loan Only secured overdraft Can be demand loan or overdraft Partially as demand loan and partially as overdraft.
7. Margin required to be maintained on accrued value or surrender value of NSC/KVP and LI Policies in case of Lakshmi Easy Loans is a. b. c. d.
25% 15% 10% NIL
8. Minimum processing fees to be collected for Lakshmi Easy Loans (LEL) are a. b. c. d.
Demand Loans: Rs.50/- and for SOD – Rs.100/Rs.100/- for both demand loan and SOD Rs.250/- for both demand loan and SOD No minimum amount stipulated.
9. Maximum repayment in the case of demand loans under Lakshmi Easy Loans (LEL) is a. 60 months b. 60 months or 2 months before maturity of NSC/KVP/LI Policies, whichever is early. c. 60 months or 3 months before maturity of NSC/KVP/LI Policies, whichever is early. d. 60 months or till maturity of the NSC/KVP/LI policies, whichever is early. 10. In case of prepayment of loans under Lakshmi Easy Loans (LELs) prepayment penalty applicable is a. b. c. d.
@1% of the outstanding balance @2% of the outstanding balance @0.50% of the outstanding balance No prepayment penalty
11. Lakshmi Kisan Credit Card (LKCC) LVB/102-05-MAIN/Cir.3/437/12-13. 29.09.2012 LVB/102-05.05-MAIN/Cir.14/554/15-16 30 October 2015 – INTEREST RATE LVB/102-05-MAIN/Cir.8/377/14-15 dated 27 August 2014 (Issuance of ‘RuPayKisan Credit Card’ to all LKCC account holders) 1. Lakshmi Kisan Credit Card (LKCC) is available for a. b. c. d.
Traders trading in agriculture products Farmers cultivating land with assured irrigation facility A newly introduced customer Any customer of the Bank
2. To be eligible for Lakshmi Kisan Credit Card (LKCC), the borrower’s age should be a. b. c. d.
Between 18 years and 50 years Between 21 years and 65 years Between 18 years and 50 years Between 21 years and 75 years
3. For availing Lakshmi Kisan Credit Card (LKCC), the applicant should be a. b. c. d.
An existing customer having satisfactory dealings with our Bank Need not be a customer of our Bank, but should be a farmer Need not be a customer of our Bank, but can be a tenant farmer Can be a trader in agricultural implements.
4. Minimum and maximum quantum of facility available under Lakshmi Kisan Credit Card (LKCC) are a. b. c. d.
Min.: Rs 1000/-. Max: Rs 10.00 lakhs Min.: Rs 10000/-. Max: Rs 50.00 lakhs Min.: Rs 10000/-. Max: Rs 100.00 lakhs Min.: Rs 10000/-. Max: Rs 500.00 lakhs
5. Lakshmi Kisan Credit Card (LKCC) is valid for a. b. c. d.
5 years with annual review of revolving cash credit. 1 year renewable every year 3 years with annual review/renewal 2 years with annual review/renewal.
6. Lakshmi Kisan Credit Card (LKCC) can be sanctioned by way of a. Cash Credit b. Term Loan c. Both Cash Credit and Term Loan 7.
Margin for Lakshmi Kisan Credit Card (LKCC) is stipulated at a. b. c. d.
Cash Credit -25% & Term Loan – 15% to 25% Cash Credit -15% & Term Loan – 15% to 25% Cash Credit - NIL & Term Loan – 15% to 25% Cash Credit -20% & Term Loan – 15% to 25%
8. Mortgage of cultivating land in case of Lakshmi Kisan Credit Card (LKCC) is required in respect of facilities a. b. c. d.
Of above Rs.5.00 lakhs Of above Rs. 1.00 lakh Of above Rs. 0.50 lakhs Of above Rs.10.00 lakhs
12. Vidya Lakshmi Loan (VLL): 1. Vidya Lakshmi Loan can be availed for a. b. c. d.
Pursuing specific courses of study at recognized institutions Pursuing job oriented courses in recognized institutions Pursuing study abroad in recognized institutions All the above.
2. To be eligible to avail loan under Vidya Lakshmi Loan, which one of the following is correct a. The student should have secured admission through entrance test/meritbased selection process b. The student should hail from a reputed family c. The student should have secured a certain percentage of marks in the entrance test d. The student should be a meritorious student throughout the course. 3. For studies in India, the following courses are eligible a. Aeronautical engineering, pilot training, shipping, degree/diploma in nursing course, provided the institutions offering these courses are approved by the respective authorities. b. Regular degree c. Mechanical Engineering Degree course offered by an approved Engineering College d. All the above. 4. Eligible expenses for extending loans under Vidya Lakshmi Loan include: a. b. c. d.
Purchase of computers and lap top essential for completing the course. Expenses for purchase of cloths Expenses for travel to and from the college Medical expenses
5. To be eligible for priority sector classification, the maximum loan quantum for domestic and foreign studies under Vidya Lakshmi Loan (VLL) are: a. b. c. d.
Rs.5.00 lakhs and Rs.20 lakhs Rs.10.00 lakhs and Rs.20.00 lakhs Rs.10.00 lakhs and Rs.50.00 lakhs There is no ceiling
6. Margin for Vidya Lakshmi Loan is a. 10% of the total expenses b. 15% of the total expenses
c. 25% of the total expenses d. No margin is required 7. For appraising Vidya Lakshmi Loan (VLL), the following will be looked into a. b. c. d.
The family income of the student Last three year’s IT returns of the student/parents Future income prospects of the student Value of Collateral security offered
8. The repayment under Vidya Lakshmi Loan (VLL) is fixed as follows: a. At the end of the holiday period, simple interest for the entire holiday period is calculated and added to the principal and EMI is fixed for the remaining agreed repayment period. b. Interest during holiday period is accrued on monthly basis and at the end of the holiday period, the repayment is required to be made in EMIs. c. The repayment is fixed as applicable to Term Loans. d. None of the above. 9. For girl students availing Vidya Lakshmi Loan (VLL), a concession in interest rate is offered up to: a. b. c. d.
1% 0.50% 0.75% 0.25%
10. For eligibility under the Interest subsidy during moratorium period for studies in India, for Students belonging to Economically Weaker Sections (EWS) under the ‘IBA Model Educational Loan Scheme’ as per the Central Scheme for Interest Subvention (CSIS) announced by the Govt. of India, Ministry of Human Resources Development, the annual income (from all sources) of the family of the student should be a. b. c. d.
Maximum Rs.10.00 lakhs Maximum Rs.4.50 lakhs Maximum Rs.5.00 lakhs Maximum Rs.2.00 lakhs
11. Interest subsidy on Vidya Lakshmi Loans (VLL) during holiday period for students belonging to Economically Weaker Sections (EWS) is available for a. b. c. d.
Professional and Technical courses in India. Professional and Technical courses pursued in a foreign university. For all courses studied in India For post-graduation courses in India.
12. Interest subsidy on Vidya Lakshmi Loans (VLL) during holiday period for students belonging to Economically Weaker Sections (EWS) is available for a. All Courses irrespective of the fees structure and up to any amount. b. Courses where the fee structure is more than Rs. 10.00 lacs. However, interest subsidy should be calculated for loans up to Rs.10.00 lacs only. c. Courses where the fee structure is more than Rs. 5.00 lacs. d. Courses where the fee structure is more than Rs. 15.00 lacs. However, interest subsidy should be calculated for loans up to Rs.10.00 lacs only. 13. Interest concession of 1% is available for Vidya Lakshmi Loans, where the interest is serviced during holiday period a. True b. False 14. Processing fee applicable for Vidya Lakshmi Loans (VLL) is a. b. c. d.
1.00% of the loan amount 0.50% of the loan amount NIL 0.25% of the loan amount
15. Co obligation of parents/grand parents is required for Vidya Lakshmi Loans (VLL) in the following cases: a. b. c. d.
Loans up to Rs.4.00 lakhs Loans between Rs.4.00 lakhs & Rs.7.50 lakhs Loans above Rs.7.50 lakhs In all the above cases
16. Tangible Collateral Security of appropriate value is required in respect of Vidya Lakshmi Loans (VLL) of a. b. c. d.
Above Rs.4.00 lakhs Above Rs.7.50 lakhs Above Rs.10.00 lakhs for domestic studies and Rs.20.00 lakhs for foreign studies No collateral security is required.
17. Maximum holiday period available for Vidya Lakshmi Loans (VLL) is a. b. c. d.
Course Period Course Period + 1 year or 6 months after employment Course Period + 6 months Course period + till employment
18. The maximum repayment period for Vidya Lakshmi Loans of up to Rs. 7.50 lakhs is a. b. c. d.
10 years 5 years 15 years 4 years
19. The maximum repayment period for Vidya Lakshmi Loans of above Rs. 7.50 lakhs is a. b. c. d.
10 years 5 years 15 years 4 years
20. If the student is unable to complete the course of study within the holiday period a. Bank should recall the loan b. Guarantor should be advised to repay the loan c. Extension of time up to 2 years can be allowed by one level higher authority, to complete the course d. The student’s parents should be advised to start the repayment form their income. 21. Reimbursement of the eligible expenses can be made in Vidya Lakshmi Loan as part of the loan provided, a. b. c. d.
The expenses were incurred within the past 12 months The expenses were incurred within the past 6 months No reimbursement is permitted No time limit. The same is approved by the sanctioning authority.
22. Application for Vidya Lakshmi Loans (VLL) are to be disposed off within a. a period of two months, but not exceeding the time norms stipulated for disposing loan applications under priority sector lending. b. A period of 15 days c. a period of one month, but not exceeding the time norms stipulated for disposing loan applications under priority sector lending. d. No period is stipulated. 23. The rejection of applications for Vidya Lakshmi Loans (VLL) requires the concurrence of a higher level authority a. Yes b. No.
13. Lakshmi Gold Power (LGP): 1. The main difference between Lakshmi Gold Power (LGP) and Jewel Deposit Loans (JDLs) is a. JDL is a demand loan and LGP is an overdraft b. JDL is against gold jewels and LGP is against bullion c. JDL can be sanctioned to individuals and LGP can be sanctioned to business entities d. JDL can be sanctioned for agricultural purposes and LGP cannot be sanctioned for agricultural purposes. 2. The minimum and maximum loan quantum permitted under Lakshmi Gold Power (LGP) are: a. b. c. d.
Minimum Rs.0.10 lakh and maximum Rs.10.00 lakhs Minimum Rs.0.50 lakh and maximum Rs.5.00 lakh Minimum Rs.0.50 lakh and maximum Rs.10.00 lakh No such stipulation
3. The advantage in availing LGP over JDL is a. LGP can be sanctioned for gold bullion also b. LGP can be sanctioned against precious stones also c. Partial payment and partial withdrawal/pledge of jewels is possible in LGP, which is not available in JDL d. The interest rate is different for both the limits. 4. Applicable loan processing fee and minimum processing fee for Lakshmi Gold Power (LGP) are a. b. c. d.
1.00% with a minimum of Rs.1000/0.50% with a minimum of Rs.100/0.25% with a minimum of Rs.1000/None of the above ***********
Answer key for questions on Lakshmi Loan products (13 products, 191 questions) 1, Lakshmi Business Credit: (24) (1) b; (2) c; (3) b; (4) d; (5) a; (6) c; (7) a; (8) d; (9) a; (10) d; (11) b; (12) c; (13) d; (14) c; (15) c; (16) b; (17) c; (18) c; (19) d; (20) a; (21) d; (22) b; (23) b; (24) a; 2. Lakshmi Commercial Vehicle Loan (term loan): (8) (1) d; (2) c; (3) d; (4) b; (5) b; (6) c; (7) b; (8) c; 3. Lakshmi Home Loans (LHL): (32) (1) c; (2) b; (3) c; (4) a; (5) d; (6) c; (7) c; (8) b; (9) b; (10) c; (11) a; (12) b; (13) b; (14) a; (15) a; (16) b; (17) a; (18) c; (19) a; (20) d; (21) d; (22) c; (23) a; (24) b; (25) b; (26) a; (27) d; (28) d; (29) b; (30) c; (31) c; (32) b; 4. Lakshmi Loan against Properties–LLAP –Term Loan: (14) (1) d; (2) b; (3) d; (4) a; (5) c; (6) c; (7) a; (8) c; (9) c; (10) b; (11) c; (12) b; (13) c; (14) b; 5. Lakshmi Business Term Loan (LBTL) (Modification of LLAP): (13) (1) c; (2) c; (3) b; (4) d; (5) c; (6) a; (7) b; (8) c; (9) c; (10) c; (11) a; (12) b; (13) b; 6. Lakshmi Loan against Shares (LLAS):(8) (1) a; (2) b; (3) b; (4) d; (5) a; (6) a; (7) b; (8) d 7. Lakshmi Personal Vehicle Loan: (LPVL): (15) (1) a; (2) b; (3) c; (4) a; (5) a; (6) b; (7) d; (8) b; (9) ; (10) a; (11) b; (12) a; (13) b; (14) b; (15) a; 8. Lakshmi Commodity Power – LCP: (12) (1) b; (2) d; (3) a; (4) d; (5) a; (6) b; (7) a; (8) a; (9) a; (10) b; (11) b; (12) a; 9. Lakshmi Rental Loan (LRL): (16) (1) c; (2) d; (3) d; (4) c; (5) a; (6) d; (7) b; (8) c; (9) d; (10) b; (11) a; (12) b; (13) c; (14) c; (15) d; (16) b; 10. Lakshmi Easy Loan (LEL): (10)
(1) c; (2) b; (3) a; (4) d; (5) c; (6) c; (7) c; (8) a; (9) b; (10) d; 11. Lakshmi Kisan Credit Card (LKCC): (8) (1) b; (2) b; (3) a; (4) c; (5) a; (6) c; (7) c; (8) b; 12. Vidya Lakshmi Loan (VLL): (23) (1) d; (2) a; (3) d; (4) a; (5) b; (6) b; (7) c; (8) a; (9) d; (10) b; (11) a; (12) b; (13) a; (14) c; (15) d; (16) b; (17) b; (18) a; (19) c; (20) c; (21) b; (22) c; (23) a 13. Lakshmi Gold Power (LGP): (8) (1) a; (2) b; (3) c; (4) b; (5) a; (6) c; (7) c; (8) b;
Strictly for internal circulation only
Model questions on Lakshmi Loan products This questionnaire contains 191 questions on 13 products The Answer key is given at the end. I.
Lakshmi Business Credit (LBC):
{LVB/102-05.05-MISC/Cir.3/134/14-15 03.06.2014, LVB/102-06.03-MAIN/Cir.4/105/15-16 21 May 2015 & LVB/102-05-MISC/Cir6/216/15.16 dated 24.6.2015, LVB/102.05.MISC.34/511/17-18 dated 08.03.2018 & LVB/102-05-MISC/Cir.28/294/18-19 Dated 19.11.2018} 1. Which of the following types of customers is not eligible to avail LBC facility: a. Petrol dealer b. Share/stock brokers c. Proprietary firm d. Private Limited Company 2. To be eligible for LBC, the business enterprise (i) should be in business and (ii) earning profit for: a) 4 years & 3 years b) 2 years & 2 years c) 3 years & 2 years d) No such requirement 3. For arriving the eligible quantum of loan under LBC Scheme, the following 3 criteria are verified: a) Capital, Profit and Security b) Capital, Turnover, Coll. security d) Subordinated debt, Turnover, Coll. Security. e) Capital, Security and Key person’s Age. 4. Maximum quantum that can be sanctioned under LBC in Semi-urban area branches: a. Rs.1.00 crore b. Rs.2.00 crore c. Rs.4.00 crore d. Rs.5.00 crore
5. LBC is not available for the following purpose: a. To construct the business premises b. For build up of current assets c. for advance payment to suppliers d. goods in transit 6. The following are the criteria verified for arriving at the eligible quantum of LBC limit: a. 35% of actual turnover, 4 times capital funds, appropriate collateral security. b. 25% of actual turnover, 5 times capital funds, 100% collateral security c. 20% of projected turnover, 4 times capital funds, Permissible collateral, as per LTV norms. d. 20% of projected turnover, 5 times of capital funds, 125% collateral security. 7. LBC is not permitted in Rural Branches: a. True b. False. 8. The following is not an acceptable security under LBC: a. Commercial land and building b. Industrial Land and building c. Self occupied residential building d. Agricultural land 9. For LBC limits sanctioned in semi urban areas, if the loan quantum is more than Rs.2.00 crore, at least 2 coll. Securities are to be obtained. a. True b. False 10. In the case of self-occupied commercial buildings, the value of security that can be accepted is ____% of the forced sale value. a. b. c. d.
50% 60% 65% 55%
11. In case of vacant lands and let out commercial property, the margin requirement is a. b. c. d.
40% 50% 60% 45%
12. In case of un-approved buildings offered as security, a. b. c. d.
It can be accepted as eligible security. Only land value can be accepted Only land value to be accepted provided land has approval Cannot be accepted.
13. One of the following types of properties is eligible as security for LBC limits a. b. c. d.
Agricultural land with standing paddy crop Residential building in rural area with panchayat approval Unapproved vacant land Self-occupied residential cum commercial building in semi-urban area.
14. Property belonging to one of the following persons is not eligible security for LBC: a. Residential building owned by proprietor jointly with his wife. b. Commercial building owned by proprietor’s father c. Approved vacant site in the name of the close friend of the proprietor who is also a distant relative. d. Residential land and building belonging to son of the proprietor. 15. What is the maximum age of the building property that can be accepted as security for LBC limits: a. b. c. d.
50 years 45 years 40 years 25 years
16. In respect of securities with huge value obtained for LBC limits, whether cross collateralization is permitted ? a. Yes b. No. 17. The maximum internal credit rating acceptable for considering LBC proposals is: a. b. c. d.
LVB3 LVB4 LVB5 LVB6
18. In respect of LBC limits, the frequency of unit visit is stipulated as a. Quarterly b. Monthly c. Monthly, for limits in excess of Rs.1 cr and quarterly, for others.
d. Quarterly for limits in excess of Rs.1 crore and Monthly for limits up to Rs.1 crore. 19. In the case of LBC limits, drawing power is arrived based on a. b. c. d.
Monthly stock statement Monthly turnover Quarterly turnover No drawing power need be fixed.
20. In the case of LBC limits, GST returns are to be obtained a. b. c. d.
Once in 3 months Once in 6 months Annually Need not be obtained.
21. To be eligible for enhancement in the LBC limit, the minimum transaction to be routed through our operative CASA account is a. 100% b. In excess of 100% c. 50% d. 80% and above. 22. For LBC limits, Stock and Receivables Audit (SRA) is to be conducted at the following intervals: a. b. c. d.
Annual SRA is waived for LBC limits. Once in three years At the time of sanction and after that, every year.
23. Excess limit in LBC limit can be permitted a. b. c. d.
No excess is permitted 10% of the limit or Rs.25 lakhs whichever is lower 20% of the limit without ceiling No such restriction regarding limit or period.
24. Excess in LBC limits can be permitted a. For maximum of 30 days and maximum 3 times in a year. b. No excess is permitted c. For maximum 3 months at a time without restriction on number of occasions in a year. d. At the discretion of the sanctioning authority.
2. Lakshmi Commercial Vehicle Loan (term loan): LCVL: LVB/102-05-MISC/Cir.14/548/14-15 dt.22.11.2014; LVB/102-05-MISC/Cir.9/69/18-19 dated 10 May 2018. 1. Lakshmi Commercial Vehicle Loan (LCVL) is available for purchase of a. b. c. d.
Multi-axel vehicles Transport buses Poclain units All the above.
2. Maximum quantum of finance under LCVL in respect of partnership firms is a. Rs.5 crores per borrower b. Rs.4 crores per borrower c. Rs.3 crores per borrower d. Rs.15 crores per borrower. 3. Maximum quantum of finance under LCVL in respect of Limited Companies is a. b. c. d.
Rs.5 crores per borrower Rs.4 crores per borrower Rs.3 crores per borrower Rs.15 crores per borrower.
4. Margin stipulated for LCVL is a. b. c. d.
10% of the cost of vehicle including body building 15% of the cost of vehicle including body building 25 % of the cost of vehicle including body building No margin required.
5. Processing fee applicable for LCVL is: a. 2% of loan amount, maximum Rs.1.00 lakh b. 1% of the loan amount with maximum of Rs.50,000/c. 1.10% of the loan amount without maximum ceiling d. 0.50% of the loan amount with maximum of Rs.10,000/6. Collateral security is insisted for LCVL limits of a. Above Rs.1.00 crore b. Above Rs.50 lakhs c. Above Rs.25 lakhs d. No collateral security is required.
7. The maximum repayment period and holiday period for LCVL is a. b. c. d.
120 months & 6 months 72 months & 3 months 84 months & 3 months 60 months & 6 months
8. Regional Credit Committee (RCC) at the ROs have powers to sanction LCVL up to a. b. c. d.
Rs.9.00 crore Rs.5.00 crore Rs.3.00 crore No powers
3. Lakshmi Home Loan (LHL): {LVB/102.05.05-MAIN/Cir.29/863/11-12/03.01.2012 & LVB/102-05-MAIN/Cir.3/448/15-16} 1. The following applicant is not eligible to avail loan under LHL a. Individual doing textile trading business b. Doctor c. a private limited company to purchase house to provide staff quarters d. a Salaried employee 2. NRIs and HUF are not eligible to borrow under LHL a. True b. False 3. LHL is available in the following forms a. as a Term Loan b. as an overdraft c. both the above. 4. Purposes for which LHL can be availed include a. Construction/purchase of house/flat, additional construction, additions/ alterations/repairs and purchase of approved plots b. Construction/Purchase of a commercial complex c. Construction of a hospital with doctor’s residence d. Purchase of a 50 years old house. 5. The co borrower in LHL can be the applicant’s: a. b. c. d.
Business partner Father in law Brother Daughter in law
6. In the case of LHL for purchase of approved plots, as per the declaration to be obtained from the borrower, within which period the house has to be constructed on the plot a. b. c. d.
No such requirement 5 years 2 years 3 years
7. Salaried individuals are eligible for LHL up to
a. b. c. d.
50 times of their net monthly income 5 times of their net average annual income 60 times of their net monthly income No such ceiling.
8. For Business/self-employed/agriculturists, the eligible LHL is arrived based on: a. b. c. d.
60 times of their net monthly income 5 times of their net average annual income 6 times of their net average annual income No such ceiling.
9. In respect of LHL, in all types of eligible borrowers, the EMI of the loan should not exceed a. b. c. d.
60% of net monthly income. 50% of the net monthly income. 25% of the net monthly income. 1/3rd of net monthly income.
10. Minimum and maximum loan quantum under LHL in semi urban areas is a. b. c. d.
Rs.1.00 lakh&Rs.1.50 crore Rs. 2.00 lakhs & Rs.2.00 crore Rs.2.00 lakhs & Rs.1.00 crore No ceiling.
11. Minimum and maximum loan quantum under LHL in Metro areas is a. b. c. d.
Rs.5.00 lakh & Rs.1.50 crore Rs. 3.00 lakhs & Rs.2.00 crore Rs.2.00 lakhs & Rs.1.00 crore No ceiling.
12. Minimum and maximum loan quantum under LHL in Urban areas is a. b. c. d.
Rs.5.00 lakh & Rs.2.00 crore Rs. 3.00 lakhs & Rs.1.50 crore Rs.2.00 lakhs & Rs.1.00 crore No ceiling.
13. Minimum and maximum loan quantum under LHL in Rural areas is a. b. c. d.
Rs.1.00 lakh & Rs.1.00 crore Rs. 3.00 lakhs & Rs.1.50 crore Rs.1.00 lakhs & Rs.50.00 lakhs No ceiling.
14. For renovation/repairs the maximum loan quantum under LHL is restricted to a. 75% of the estimated cost or 40% of the value of the property mortgaged or Rs.30 lacs, whichever is lower. b. 75% of the estimated cost or 40% of the value of the property mortgaged or Rs.30 lacs, whichever is higher. c. 50% of the estimated cost or 50% of the value of the property mortgaged or Rs.50 lacs, whichever is lower. d. 75% of the estimated cost or 50% of the value of the property mortgaged or Rs.30 lacs, whichever is lower. 15. Cost of land/plot that can be included in the project cost is restricted to a. b. c. d.
1/3rd of the project cost with a margin of 20% ½ of the project cost with a margin of 20% 10% of the project cost without ceiling 25% of the project cost with a margin of 20%
16. In case of LHL for purchase of old houses, the maximum age of the building can be a. b. c. d.
15 years 20 years 25 years 40 years
17. Margins for LHL in respect of loans up to Rs.75 lakhs and above Rs.75 lakhs are a. b. c. d.
20% & 25% of the project cost 25% & 30% of the project cost 15% & 25% of the project cost No margin required.
18. Margins for LHL for additional construction/alterations/repairs:
a. b. c. d.
50% of the estimated cost 30% of the estimated cost 25% of the estimated cost 10% of the estimated cost.
19. Margins for LHL for purchase of approved plots: a. e. f. g.
25% of the estimated cost 30% of the estimated cost 35% of the estimated cost 10% of the estimated cost.
20. Margins for LHL for purchase of old houses of age (i) below 10 years; (ii) 10-15 years and (iii) above 15 years up to 20 years are: a. b. c. d.
20% , 25% and 30%. 25% , 35% and 45%. 25% , 30% and 40%. 25% , 30% and 40%.
21. Maximum repayment period, including holiday period, under LHL for individuals other than salaried individuals is: a. b. c. d.
180 EMIs or borrower attaining age of 65 whichever is lower. 200 EMIs or borrower attaining age of 65 whichever is lower. 150 EMIs or borrower attaining age of 65 whichever is lower. 240 EMIs or borrower attaining age of 70 whichever is lower.
22. Maximum repayment period, in the case of LHL for repairs/renovation/purchase of plots is a. b. c. d.
50 months without holiday period 120 months without holiday period 60 months without holiday period 48 months without holiday period
23. Maximum repayment period,including holiday period, in the case of LHL for salaried individuals is a. As applicable to others, with a stipulation that the repayment should end 3 months prior to the date of retirement.
b. As applicable to others, with a stipulation that the repayment should end 6 months prior to the date of retirement. c. As applicable to others d. As applicable to others, or date of retirement whichever is earlier. 24. Maximum holiday period for construction of houses is a. b. c. d.
24 months or till completion of construction, whichever is lower 12 months or till completion of construction, whichever is lower 6 months or till completion of construction, whichever is lower 18 months or till completion of construction, whichever is lower
25. In respect of LHL-OD, which of the following facilities are available? a. b. c. d.
Group insurance ATM Debit Card, Cheque Book, Net Banking, etc. Priority sanction for other loans Reduction in processing fee.
26. In respect of LHL-OD, monthly Drawing Power (DP) will be reduced by EMI paid. a. True b. False 27. LHL-Top up loan is available for the following purpose/s: a. b. c. d.
Personal expenditures Business needs Investment purposes All the above.
28. The eligibility for LHL Top up loan is arrived based on a. Good track record of repayment for not less than 12 months in the existing LHL account of the borrower. b. Market value of the property c. Repayment capacity of the borrower d. All the above.
29. The maximum age of the borrower in respect of the LHL Top-up loan can be a. 70 years b. No cap. However, loan tenure cannot be beyond the maturity date of the LHL against which the Top up loan is considered. c. 65 years d. No maximum age prescribed. 30. Maximum loan that can be sanctioned under LHL-TU is a. b. c. d.
Rs.50 lakhs Rs.75 lakhs Rs.25 lakhs Rs.10 lakhs
31. The loan tenor for the LHL-TU is a. b. c. d.
15 years 10 years 10 years or residual period of the existing LHL, whichever is lower. 7 years.
32. LTV in respect of LHL-TU loan is a. b. c. d.
75% including existing LHL. 80% including existing LHL. 80% for LHL-TU 60% for LHL-TU
4. Lakshmi Loan against Properties–LLAP –Term Loan: LVB/102.05-MAIN/Cir.7/301/14-15 28 July 2014; 10/395/14-15 dated 01.09.2014; 2/75/1516 dated 08.05.2015, 28/417/17-18 dated10.01.2018 1. LLAP is not applicable for the following set of applicants: a. b. c. d.
Salaried individuals, professionals, agriculturist, partnership firm, Limited Co. Non Resident Indians Politicians, lawyers and film actors. Both (b) & (c)
2. Minimum quantum of loan prescribed under LLAP-TL is a. b. c. d.
Rs.1.00 lakh Rs.10.00 lakhs Rs.5.00 lakhs No minimum is prescribed.
3. Purposes for which LLAP-TL is not available include a. b. c. d.
Speculative purposes Medical expenses Activities listed out in the negative list of our Lending Policy. both (a) and (c)
4. Maximum Repaymentpermitted under LLAP-TL scheme is a. b. c. d.
Maximum 120 EMIs without holiday period. Maximum 60 EMIs without holiday period. Maximum 180 months including holiday period Maximum 84 months without holiday period.
5. Maximum age of the borrower at the time of closure of the LLAP-TL in case of other than salaried individuals is a. b. c. d.
65 years. 70 years. 75 years. 80 years.
6. In the case of individuals, the eligible quantum of loan is arrived based on a. b. c. d.
10 times of net average annual income 7 times of net average annual income 5 times of net average annual income 5 times of gross annual income.
7. In the case of companies, the eligible quantum of loan is arrived based on a. b. c. d.
25% of annual turnover 25% of gross profit 5 times of annual turnover 2 times of annual turnover
8. Clubbing of income of the following person is permitted in the case of LLAP-TL : a. b. c. d.
Close family friend Colleague Sister None of the above.
9. Margin required in the case of LLAP-TL of above Rs.15 lakhs is a. b. c. d.
40% 35% 50% 20%
10. Processing fee prescribed for LLAP-TL is a. b. c. d.
0.40% 0.50% 0.25% 1.10%
11. Minimum Collateral security coverage should be. a.100% b. as per Lending Policy c. 167% d. 150%
12. Property not eligible as coll. Security for LLAP-TL is a. Residential land and building b. Hospitals c. commercial property d. Approved vacant land. 13. In the case of eligible building property, the maximum age of the property permitted is: a. b. c. d.
25 years 20 years 40 years 30 years
14. If the building property offered as security does not have approval, a. The same cannot be accepted as security b. If it is self-occupied for more than 3 years with latest 3 years’ property tax paid receipts, it can be accepted. c. Permission from sanctioning authority is required for accepting. d. If it is located in a prime area, it can be accepted.
5. Lakshmi Business Term Loan (LBTL) (Modification of LLAP for MSME Sector) Ref: LVB/102-05-MAIN/Cir.7/293/18-19 19 November 2018
1. Lakshmi Business Term Loan (LBTL) is introduced as a replacement for a. b. c. d.
LBC Term Loan Lakshmi Business Credit Lakshmi Loan Against Property for MSME Sector Lakshmi Loan Against Property for personal purposes
2. Purpose for which Lakshmi Business Term Loan (LBTL) can be sanctioned is
a. b. c. d. 3.
For personal purposes of the promoters of the business For construction of business premises For Business purposes, within 4 KM radius of the sourcing branch For investment in capital
To be eligible for loan under Lakshmi Business Term Loan (LBTL), the following
criteria need to be fulfilled:
a. b. c. d.
The units Current Ratio should be 2:1 DSCR based on latest audited balance sheet should be at least 1.50. The Debt Equity ratio should be less than 3:1 No such requirement
4. The maximum and minimum amount that can be sanctioned under LBTL area. a. b. c. d.
Rs.100 lakh and Rs.500.00 lakh Rs.50 lakh and Rs.500 lakh Rs.100 lakh and Rs.300 lakh Rs. 25 lakh and Rs.500 lakh
5. LBTL limits are not permitted in a. b. c. d.
Metro Branches Urban Branches Rural Branches Semi-urban Branches
6. Maximum Loan amount under LBTL is restricted in respect of borrowers a. Who do not have track record of term loan repayment or if the previous loan is closed 6 months before applying for LBTL. b. Who is availing other loans from our Bank c. Who do not have track record of more than 5 years d. No such restriction. 7. If the security offered for LBTL is a let out commercial property, the exposure is to be restricted to a. b. c. d.
Rs.1.00 crore Rs.3.00 crore Rs.5.00 crore No such restriction.
8. The maximum repayment period that can be permitted for LBTL is a. b. c. d.
60 months 180 months 120 months 24 months
9. For Lakshmi Business Term Loan (LBTL), the LTV based on Force Sale Value is restricted to 45% in respect of the following type of property: a. b. c. d.
Self occupied residential property Vacant Land & let out commercial property Industrial property Agricultural land
10. For LBTL, the LTV based on Force Sale Value in respect of leased out/rented out/vacant residential building is: a. b. c. d.
50% 55% 60% 65%
11. In respect of old buildings offered as security for LBTL, the age of the property should not be more than a. b. c. d.
40 years at the time of application. 25 years at the time of maturity of the loan 15 years 50 years at the time of application.
12. In LBTL, for obtaining second valuation report, the maximum security value and loan amount are stipulated as: a. b. c. d.
Rs.1.00 crore & Rs.3.00 crore Rs.2.00 crore & Rs.1.00 crore Rs.1.00 crore & Rs.2.00 crore No such stipulation.
13. If the collateral security value is huge and the coverage for Lakshmi Business Term Loan (LBTL) is fully covered, the residual portion of the collateral security can be considered for other loans also a. b. c. d.
Only to the extent of 50% of the residual value No cross collateralization is permitted Remaining value of the collateral security can be extended for other loans. Remaining value of collateral security can be extended only for Lakshmi Business Credit.
6. Lakshmi Loan against Shares (LLAS): 1. Lakshmi Loan Against Shares (LLAS) can be extended against pledge of shares of the following category: a. BSE top 200 shares only b. NSE 50 Shares only c. All listed shares d. Our Bank shares 2. Lakshmi Loan Against Shares (LLAS) can be extended through all our branches a. True b. False 3. For availing loan under Lakshmi Loan Against Shares (LLAS), the shares should be a. b. c. d.
In physical form duly transferred in the name of the Bank] In demat form duly marking our pledge Both physical and demat forms As per the decision of the Branch Manager
6. The minimu m & maximum loan that can be sanctioned under Lakshmi Loan Against Shares (LLAS) is a. b. c. d.
Rs.10.00 lakhs & Rs.100.00 lakhs Rs.10.00 lakhs & Rs.50.00 lakhs Rs.2.00 lakhs & Rs.25.00 lakhs Rs.1.00 lakh & Rs.20.00 lakhs
7. Lakshmi Loan Against Shares (LLAS) can be sanctioned against the following securities also a. b. c. d.
Mutual Funds, Exchange Traded Funds and Debentures Mutual Funds only Debentures only NSCs, KVPs, LIPs etc.
8. Type of limit that can be sanctioned under Lakshmi Loan Against Shares (LLAS) is a. b. c. d.
Working capital overdraft Term loan repayable in instalments Demand Loan repayable at the end of the loan tenor In a combination of the above
9. The restriction in age in respect of borrowers under Lakshmi Loan Against Shares (LLAS) is prescribed as
a. b. c. d.
Between 18 years and 60 years Between 21 years and 75 years Between 18 years and 65 years No restriction
10. Lakshmi Loan Against Shares (LLAS) is not available for a. b. c. d.
Unlisted shares Our Bank’s shares Other than BSE 200 shares All the above
7. Lakshmi Personal Vehicle Loan: (LPVL) 1. Lakshmi Personal Vehicle Loan (LPVL) can be availed by a. b. c. d.
By any type of individuals for purchasing a vehicle for their personal use By a company for purchasing a vehicle for use of its MD. By a partnership firm for purchasing a vehicle for their business use. Both (a) & (b)
2. Lakshmi Personal Vehicle Loan (LPVL) is available for a. b. c. d.
Purchase of new & used four wheelers and two wheelers Purchase of new & used four wheelers and new two wheelers Purchase of new four wheelers and new two wheelers Purchase of commercial vehicles also
3. In respect of loans for purchase of used four wheelers under Lakshmi Personal Vehicle Loan (LPVL), the vehicle can be a. b. c. d.
2 years old 10 years old 4 years old Old vehicles are not permitted.
4. In the case of individuals, the minimum annual income for becoming eligible for purchase of 4-wheelers is a. b. c. d.
Rs.1,20,000/Rs.2,00,000/Rs. 1,50,000/No such requirement
5. In the case of Lakshmi Personal Vehicle Loan (LPVL), the income of the following persons can be clubbed with the income of the applicant for arriving at the eligibility: a. spouse/other family members, subject to verification of sources. b. spouse/other family members and close friends may be included subject to verification of sources. c. Business Partners. d. Directors of the company. 6. As regards repaying capacity of the applicants under Lakshmi Personal Vehicle Loans (LPVL), the applicant’s a. Net annual income should be twice the annual repayment under LPVL b. Net monthly income should be at least twice the monthly instalment fixed for the loan.
c. DSCR should work out to 1.50 d. The business of the applicant should earn sufficient income to repay. 7. For arriving at the eligibility for Lakshmi Personal Vehicle Loan (LPVL), the following income can be taken in to account with documentary evidence: a. b. c. d.
Rent Dividend Interest & commission All the above
8. Minimum and maximum age of the applicant under Lakshmi Personal Vehicle Loan (LPVL) is stipulated as: a. b. c. d.
21 years & 60 years 21 years & 65 years 18 years & 60 years None of the above.
9. For purchase of new 4-wheeler, the maximum loan amount under Lakshmi Personal Vehicle Loan (LPVL) is a. b. c. d.
75% of the cost of the vehicle including road tax, insurance & accessories 85% of the cost of the vehicle including road tax, insurance & accessories 90% of the cost of the vehicle including road tax, insurance & accessories 80% of the cost of the vehicle including road tax, insurance & accessories
10. Maximum loan amount for purchase of used four wheelers permitted under Lakshmi Personal Vehicle Loan (LPVL) is a. b. c. d.
60% of cost of the vehicle with a maximum of Rs.10 lakhs 60% of cost of the vehicle with a maximum of Rs.15 lakhs 75 % of cost of the vehicle with a maximum of Rs.10 lakhs 85% of cost of the vehicle with a maximum of Rs.10 lakhs
11. Maximum loan amount for purchase of new two wheelers permitted under Lakshmi Personal Vehicle Loan (LPVL) is a. b. c. d.
Rs.1.20 lakhs Rs.2.00 lakhs Rs.1.50 lakhs Rs.3.00 lakhs
12. Personal Guarantee from a person with suitable net worth / income is a must for 4 wheeler loans (LPVL). a. True b. False
13. Maximum repayment for LPVL for purchase of new four wheelers is a. b. c. d.
60 months 72 months 84 months 36 months
14. Maximum repayment for LPVL for purchase of used four wheelers is a. b. c. d.
60 months 36 months 84 months 72 months
15. Maximum repayment for LPVL for purchase of new two wheelers is a. b. c. d.
60 months 72 months 84 months 36 months
8. Lakshmi Commodity Power – LCP: 1. Why we should have tie up with some of the collateral security management organizations for warehouse financing through Lakshmi Commodity Power (LCP)? a. To reduce the burden of Branch Manager b. To mitigate various risks involved in such lending like operational or performance risk, monitoring of price fluctuations on an on-going basis, close follow up of margin calls, timely inspections, distress sale, legal or litigation risk etc. c. To reduce the burden of Sanctioning Authority d. To help the customer who do not have own go-downs. 2. The eligible borrowers under the Lakshmi Commodity Power scheme is a. b. c. d.
Farmers Commission Agents Proprietary Concerns All the above.
3. Purpose for which Lakshmi Commodity Power (LCP) can be sanctioned includes a. b. c. d.
Working Capital Any purpose, including business as well as personal For construction of Cold Storage facility General corporate purpose
4. Margin stipulated for loans under Lakshmi Commodity Power (LCP) is a. b. c. d.
50% 25% 35% 40%
5. The following commodity is eligible under Lakshmi Commodity Power (LCP) a. b. c. d.
Agricultural products (Cotton, Maize, paddy, areca nut, Green Gram, etc.) Automobile products Electronic goods Edible Oil items
6. Maximum storage period of commodity in Lakshmi Commodity Power is a. 24 months b. 12 months or maximum storage period as specified by collateral manager for the respective commodity, whichever is less.
c. 6 months or maximum storate period for the commodity, whichever is less. d. 18 months. 7. Collateral Management fee and Processing fee for loans under Lakshmi Commodity Power (LCP) are a. b. c. d.
0.75% p.a. and 0.50% 0.50% p.a. and 0.50% 1.10% p.a. and 1% 0.60% p.a. and 0.60%
8. For loans under Lakshmi Commodity Power (LCP), the securities are a. Pledge of warehouse receipt and third party guarantee b. Pledge of warehouse receipt with suitable collateral security c. Pledge of warehouse receipt, suitable collateral security and a third party guarantee from a worthy person. d. Pledge of warehouse receipt 9. The mode of payment under Lakshmi Commodity Power (LCP) is a. Bullet payment along with interest at the end of loan period without any holiday period b. Monthly instalments c. Principal at the end of the period and interest on monthly basis d. In EMIs 10. Maximum loan that can be sanctioned under Lakshmi Commodity Power (LCP) is a. b. c. d.
Rs.200.00 lakhs Rs.300.00 lakhs Rs.500.00 lakhs Rs. 400.00 lakhs
11. Under Lakshmi Commodity Power (LCP) in one customer ID a borrower can avail only one loan for different commodities dealt by him a. True b. False 12. Under Lakshmi Commodity Power (LCP), loan can be repaid partially and partial withdrawal of the pledged goods is permitted a. True b. False
9. Lakshmi Rental Loan (LRL): 1. The following type of property is not considered as eligible for extending loan under Lakshmi Rental Loan (LRL): a. b. c. d.
Commercial land and building given on lease Residential property leased out Posh residential bungalow in rural area Building complex rented out to multinational companies
2. Eligible borrowers who can avail Lakshmi Rental Loan (LRL) include: (select appropriate answer) : a. b. c. d.
Trusts Partnership firms Public & private limited companies All the above
3. In respect of old commercial or residential building against which Lakshmi Rental Loan (LRL) is applied for, the maximum age of the building is stipulated as: a. b. c. d.
40 years 30 years 25 years 15 years
4. Eligible purpose for which Lakshmi Rental Loan (LRL) can be sanctioned, do not include: a. b. c. d.
For investment in business or general corporate purposes Education purposes of children For trading in shares and securities. For conducting family marriage.
5. In respect of reputed firms as tenants in the buildings, against which Lakshmi Rental Loan (LRL) is considered, it is stipulated that : a. The firm (tenant) should be in existence for at least 3 years and should be profit making. b. The firm should be known to the Bank. c. The firm should profit making for at least one year. d. The firm should be in existence of more than 5 years and should have earned profit for at least one year. 6. Eligible tenants in the buildings against which Lakshmi Rental Loan (LRL) is considered, does not include a. Permanent employees of Government Departments
b. Permanent employees of Banks c. Employees of profit making reputed Organizations, Firms and Companies. d. Agriculturists holding 10 acres of land. 7. Maximum and minimum quantum of loan that can be availed under Lakshmi Rental Loan (LRL) are a. b. c. d.
Rs.10,000/- and Rs.5.00 crore Rs.50,000/- and maximum – as per eligibility Rs.1.00 lakh and Rs.10.00 crore None of the above
8. While arriving net monthly rent is arrived after deducting a. b. c. d.
25% margin TDS/GST and advance amount if any TDS/GST at the prevailing rate and minimum of 20% for other expenses None of the above
9. For arriving eligible loan amount under Lakshmi Rental Loan (LRL), the maximum lease period including future extended period cannot exceed a. b. c. d.
60 months 48 months 84 months 120 months
10. The eligible quantum of loan under Lakshmi Rental Loan (LRL) is arrived a. After deducting TDS/GST and expenses to the extent of 20%, the net monthly rent is eligible loan amount. b. After deducting TDS/GST and Expenses (minimum 20%) and by discounting the net monthly rent so arrived by the rate of interest chargeable. c. By totaling the rent receivable for the entire period, the eligible loan amount is arrived and EMI is arrived based on the interest rate applicable to the loan. d. By arriving DSCR and ensuring that the same does not go below 1.50. 11. The rate of interest chargeable for Lakshmi Rental Loan differs for each type of tenants in the building a. True b. False.
12. In respect of individual borrowers availing loan under Lakshmi Rental Loan (LRL), the maximum repayment can be a. 120 months. b. Remaining lease period or the borrower attaining the age of 75 years, whichever is early. c. Remaining lease period or the borrower attaining the age of 65 years, whichever is early. d. Remaining lease period. 13. In case of tripartite agreement under Lakshmi Rental Loan (LRL), the following parties are involved: a. b. c. d.
Borrower, tenant and tenant’s banker Borrower, tenant and our Bank Borrower-owner, tenant and our Bank Borrower, his/her legal heirs and our Bank
14. The following document ensures receipt of rent by the Bank (in the borrower’s account) from the tenant a. Undertaking from the tenant b. Undertaking by the tenant’s bank to remit rent to our Bank every month by debiting the tenant’s account with them. c. Power of attorney executed by the borrower in favour of our Bank d. Demand Promissory Note executed by the borrower. 15. Lakshmi Rental Loans (LRL) come under a. b. c. d.
Priority Sector Exposure(PSE) Housing Sector Exposure (HSE) MSME Sector Commercial Real estate Exposure (CRE)
16. To be eligible to avail Lakshmi Rental Loan, the minimum rent, net of TDS/GST & maintenance expenses, should be a. b. c. d.
Rs.10,000/Rs.2,500/Rs.5,000/Rs.1.00 lakh
10. Lakshmi Easy Loan (LEL): (Cir. No. 20/436/11-12 dated 25.08.2011 and Credit/Cir.No.34/2005-06 dated 4.10.2005.) 1. Lakshmi Easy Loan (LEL) can be sanctioned against the following securities a. b. c. d.
Shares and debentures Mutual fund units National Savings Certificates/Kisan Vikas Patra/Life Insurance Policies Bank’s own deposit
2. Minimum and maximum loan that can be sanctioned under Lakshmi Easy Loan (LEL) product are; a. b. c. d.
Minimum Rs.1.00 lakh & Maximum: Rs.10.00 lakhs Minimum Rs.0.10 lakh & Maximum: No Cap. Minimum Rs.0.25 lakh & Maximum: Rs.100.00 lakhs Minimum Rs.1.00 lakh & Maximum: No Cap.
3. The mode of charging of securities in case of Lakshmi Easy Loan (LEL) are: a. Transfer of security in the case of NSC/KVP and Assignment in the case of LI Policies b. Lien on NSC/KVP and LI Policies c. Pledge of NSC/KVP/LI Policies d. Hypothecation of NSC/KVP/LI Policies 4. In the case of Life Insurance Policies, the value that can be reckoned for arriving at the eligible loan amount under Lakshmi Easy Loan (LEL) is a. b. c. d.
Sum assured. Total premium payable for the entire period of the policy As per the requirement of the applicant subject to keeping required margin. Surrender value of the policy as on a recent date.
5. In the case of NSCs/KVPs, the value that can be reckoned for arriving at the eligible loan amount under Lakshmi Easy Loan (LEL) is a. b. c. d.
Face value of the certificate Maturity value of the certificate Accrued value as on a recent date. As per the requirement of the applicant subject to keeping required margin.
6. Lakshmi Easy Loan (LEL) can be sanctioned as a. b. c. d.
Only demand Loan Only secured overdraft Can be demand loan or overdraft Partially as demand loan and partially as overdraft.
7. Margin required to be maintained on accrued value or surrender value of NSC/KVP and LI Policies in case of Lakshmi Easy Loans is a. b. c. d.
25% 15% 10% NIL
8. Minimum processing fees to be collected for Lakshmi Easy Loans (LEL) are a. b. c. d.
Demand Loans: Rs.50/- and for SOD – Rs.100/Rs.100/- for both demand loan and SOD Rs.250/- for both demand loan and SOD No minimum amount stipulated.
9. Maximum repayment in the case of demand loans under Lakshmi Easy Loans (LEL) is a. 60 months b. 60 months or 2 months before maturity of NSC/KVP/LI Policies, whichever is early. c. 60 months or 3 months before maturity of NSC/KVP/LI Policies, whichever is early. d. 60 months or till maturity of the NSC/KVP/LI policies, whichever is early. 10. In case of prepayment of loans under Lakshmi Easy Loans (LELs) prepayment penalty applicable is a. b. c. d.
@1% of the outstanding balance @2% of the outstanding balance @0.50% of the outstanding balance No prepayment penalty
11. Lakshmi Kisan Credit Card (LKCC) LVB/102-05-MAIN/Cir.3/437/12-13. 29.09.2012 LVB/102-05.05-MAIN/Cir.14/554/15-16 30 October 2015 – INTEREST RATE LVB/102-05-MAIN/Cir.8/377/14-15 dated 27 August 2014 (Issuance of ‘RuPayKisan Credit Card’ to all LKCC account holders) 1. Lakshmi Kisan Credit Card (LKCC) is available for a. b. c. d.
Traders trading in agriculture products Farmers cultivating land with assured irrigation facility A newly introduced customer Any customer of the Bank
2. To be eligible for Lakshmi Kisan Credit Card (LKCC), the borrower’s age should be a. b. c. d.
Between 18 years and 50 years Between 21 years and 65 years Between 18 years and 50 years Between 21 years and 75 years
3. For availing Lakshmi Kisan Credit Card (LKCC), the applicant should be a. b. c. d.
An existing customer having satisfactory dealings with our Bank Need not be a customer of our Bank, but should be a farmer Need not be a customer of our Bank, but can be a tenant farmer Can be a trader in agricultural implements.
4. Minimum and maximum quantum of facility available under Lakshmi Kisan Credit Card (LKCC) are a. b. c. d.
Min.: Rs 1000/-. Max: Rs 10.00 lakhs Min.: Rs 10000/-. Max: Rs 50.00 lakhs Min.: Rs 10000/-. Max: Rs 100.00 lakhs Min.: Rs 10000/-. Max: Rs 500.00 lakhs
5. Lakshmi Kisan Credit Card (LKCC) is valid for a. b. c. d.
5 years with annual review of revolving cash credit. 1 year renewable every year 3 years with annual review/renewal 2 years with annual review/renewal.
6. Lakshmi Kisan Credit Card (LKCC) can be sanctioned by way of a. Cash Credit b. Term Loan c. Both Cash Credit and Term Loan 7.
Margin for Lakshmi Kisan Credit Card (LKCC) is stipulated at a. b. c. d.
Cash Credit -25% & Term Loan – 15% to 25% Cash Credit -15% & Term Loan – 15% to 25% Cash Credit - NIL & Term Loan – 15% to 25% Cash Credit -20% & Term Loan – 15% to 25%
8. Mortgage of cultivating land in case of Lakshmi Kisan Credit Card (LKCC) is required in respect of facilities a. b. c. d.
Of above Rs.5.00 lakhs Of above Rs. 1.00 lakh Of above Rs. 0.50 lakhs Of above Rs.10.00 lakhs
12. Vidya Lakshmi Loan (VLL): 1. Vidya Lakshmi Loan can be availed for a. b. c. d.
Pursuing specific courses of study at recognized institutions Pursuing job oriented courses in recognized institutions Pursuing study abroad in recognized institutions All the above.
2. To be eligible to avail loan under Vidya Lakshmi Loan, which one of the following is correct a. The student should have secured admission through entrance test/meritbased selection process b. The student should hail from a reputed family c. The student should have secured a certain percentage of marks in the entrance test d. The student should be a meritorious student throughout the course. 3. For studies in India, the following courses are eligible a. Aeronautical engineering, pilot training, shipping, degree/diploma in nursing course, provided the institutions offering these courses are approved by the respective authorities. b. Regular degree c. Mechanical Engineering Degree course offered by an approved Engineering College d. All the above. 4. Eligible expenses for extending loans under Vidya Lakshmi Loan include: a. b. c. d.
Purchase of computers and lap top essential for completing the course. Expenses for purchase of cloths Expenses for travel to and from the college Medical expenses
5. To be eligible for priority sector classification, the maximum loan quantum for domestic and foreign studies under Vidya Lakshmi Loan (VLL) are: a. b. c. d.
Rs.5.00 lakhs and Rs.20 lakhs Rs.10.00 lakhs and Rs.20.00 lakhs Rs.10.00 lakhs and Rs.50.00 lakhs There is no ceiling
6. Margin for Vidya Lakshmi Loan is a. 10% of the total expenses b. 15% of the total expenses
c. 25% of the total expenses d. No margin is required 7. For appraising Vidya Lakshmi Loan (VLL), the following will be looked into a. b. c. d.
The family income of the student Last three year’s IT returns of the student/parents Future income prospects of the student Value of Collateral security offered
8. The repayment under Vidya Lakshmi Loan (VLL) is fixed as follows: a. At the end of the holiday period, simple interest for the entire holiday period is calculated and added to the principal and EMI is fixed for the remaining agreed repayment period. b. Interest during holiday period is accrued on monthly basis and at the end of the holiday period, the repayment is required to be made in EMIs. c. The repayment is fixed as applicable to Term Loans. d. None of the above. 9. For girl students availing Vidya Lakshmi Loan (VLL), a concession in interest rate is offered up to: a. b. c. d.
1% 0.50% 0.75% 0.25%
10. For eligibility under the Interest subsidy during moratorium period for studies in India, for Students belonging to Economically Weaker Sections (EWS) under the ‘IBA Model Educational Loan Scheme’ as per the Central Scheme for Interest Subvention (CSIS) announced by the Govt. of India, Ministry of Human Resources Development, the annual income (from all sources) of the family of the student should be a. b. c. d.
Maximum Rs.10.00 lakhs Maximum Rs.4.50 lakhs Maximum Rs.5.00 lakhs Maximum Rs.2.00 lakhs
11. Interest subsidy on Vidya Lakshmi Loans (VLL) during holiday period for students belonging to Economically Weaker Sections (EWS) is available for a. b. c. d.
Professional and Technical courses in India. Professional and Technical courses pursued in a foreign university. For all courses studied in India For post-graduation courses in India.
12. Interest subsidy on Vidya Lakshmi Loans (VLL) during holiday period for students belonging to Economically Weaker Sections (EWS) is available for a. All Courses irrespective of the fees structure and up to any amount. b. Courses where the fee structure is more than Rs. 10.00 lacs. However, interest subsidy should be calculated for loans up to Rs.10.00 lacs only. c. Courses where the fee structure is more than Rs. 5.00 lacs. d. Courses where the fee structure is more than Rs. 15.00 lacs. However, interest subsidy should be calculated for loans up to Rs.10.00 lacs only. 13. Interest concession of 1% is available for Vidya Lakshmi Loans, where the interest is serviced during holiday period a. True b. False 14. Processing fee applicable for Vidya Lakshmi Loans (VLL) is a. b. c. d.
1.00% of the loan amount 0.50% of the loan amount NIL 0.25% of the loan amount
15. Co obligation of parents/grand parents is required for Vidya Lakshmi Loans (VLL) in the following cases: a. b. c. d.
Loans up to Rs.4.00 lakhs Loans between Rs.4.00 lakhs & Rs.7.50 lakhs Loans above Rs.7.50 lakhs In all the above cases
16. Tangible Collateral Security of appropriate value is required in respect of Vidya Lakshmi Loans (VLL) of a. b. c. d.
Above Rs.4.00 lakhs Above Rs.7.50 lakhs Above Rs.10.00 lakhs for domestic studies and Rs.20.00 lakhs for foreign studies No collateral security is required.
17. Maximum holiday period available for Vidya Lakshmi Loans (VLL) is a. b. c. d.
Course Period Course Period + 1 year or 6 months after employment Course Period + 6 months Course period + till employment
18. The maximum repayment period for Vidya Lakshmi Loans of up to Rs. 7.50 lakhs is a. b. c. d.
10 years 5 years 15 years 4 years
19. The maximum repayment period for Vidya Lakshmi Loans of above Rs. 7.50 lakhs is a. b. c. d.
10 years 5 years 15 years 4 years
20. If the student is unable to complete the course of study within the holiday period a. Bank should recall the loan b. Guarantor should be advised to repay the loan c. Extension of time up to 2 years can be allowed by one level higher authority, to complete the course d. The student’s parents should be advised to start the repayment form their income. 21. Reimbursement of the eligible expenses can be made in Vidya Lakshmi Loan as part of the loan provided, a. b. c. d.
The expenses were incurred within the past 12 months The expenses were incurred within the past 6 months No reimbursement is permitted No time limit. The same is approved by the sanctioning authority.
22. Application for Vidya Lakshmi Loans (VLL) are to be disposed off within a. a period of two months, but not exceeding the time norms stipulated for disposing loan applications under priority sector lending. b. A period of 15 days c. a period of one month, but not exceeding the time norms stipulated for disposing loan applications under priority sector lending. d. No period is stipulated. 23. The rejection of applications for Vidya Lakshmi Loans (VLL) requires the concurrence of a higher level authority a. Yes b. No.
13. Lakshmi Gold Power (LGP): 1. The main difference between Lakshmi Gold Power (LGP) and Jewel Deposit Loans (JDLs) is a. JDL is a demand loan and LGP is an overdraft b. JDL is against gold jewels and LGP is against bullion c. JDL can be sanctioned to individuals and LGP can be sanctioned to business entities d. JDL can be sanctioned for agricultural purposes and LGP cannot be sanctioned for agricultural purposes. 2. The minimum and maximum loan quantum permitted under Lakshmi Gold Power (LGP) are: a. b. c. d.
Minimum Rs.0.10 lakh and maximum Rs.10.00 lakhs Minimum Rs.0.50 lakh and maximum Rs.5.00 lakh Minimum Rs.0.50 lakh and maximum Rs.10.00 lakh No such stipulation
3. The advantage in availing LGP over JDL is a. LGP can be sanctioned for gold bullion also b. LGP can be sanctioned against precious stones also c. Partial payment and partial withdrawal/pledge of jewels is possible in LGP, which is not available in JDL d. The interest rate is different for both the limits. 4. Applicable loan processing fee and minimum processing fee for Lakshmi Gold Power (LGP) are a. b. c. d.
1.00% with a minimum of Rs.1000/0.50% with a minimum of Rs.100/0.25% with a minimum of Rs.1000/None of the above ***********
Answer key for questions on Lakshmi Loan products (13 products, 191 questions) 1, Lakshmi Business Credit: (24) (1) b; (2) c; (3) b; (4) d; (5) a; (6) c; (7) a; (8) d; (9) a; (10) d; (11) b; (12) c; (13) d; (14) c; (15) c; (16) b; (17) c; (18) c; (19) d; (20) a; (21) d; (22) b; (23) b; (24) a; 2. Lakshmi Commercial Vehicle Loan (term loan): (8) (1) d; (2) c; (3) d; (4) b; (5) b; (6) c; (7) b; (8) c; 3. Lakshmi Home Loans (LHL): (32) (1) c; (2) b; (3) c; (4) a; (5) d; (6) c; (7) c; (8) b; (9) b; (10) c; (11) a; (12) b; (13) b; (14) a; (15) a; (16) b; (17) a; (18) c; (19) a; (20) d; (21) d; (22) c; (23) a; (24) b; (25) b; (26) a; (27) d; (28) d; (29) b; (30) c; (31) c; (32) b; 4. Lakshmi Loan against Properties–LLAP –Term Loan: (14) (1) d; (2) b; (3) d; (4) a; (5) c; (6) c; (7) a; (8) c; (9) c; (10) b; (11) c; (12) b; (13) c; (14) b; 5. Lakshmi Business Term Loan (LBTL) (Modification of LLAP): (13) (1) c; (2) c; (3) b; (4) d; (5) c; (6) a; (7) b; (8) c; (9) c; (10) c; (11) a; (12) b; (13) b; 6. Lakshmi Loan against Shares (LLAS):(8) (1) a; (2) b; (3) b; (4) d; (5) a; (6) a; (7) b; (8) d 7. Lakshmi Personal Vehicle Loan: (LPVL): (15) (1) a; (2) b; (3) c; (4) a; (5) a; (6) b; (7) d; (8) b; (9) ; (10) a; (11) b; (12) a; (13) b; (14) b; (15) a; 8. Lakshmi Commodity Power – LCP: (12) (1) b; (2) d; (3) a; (4) d; (5) a; (6) b; (7) a; (8) a; (9) a; (10) b; (11) b; (12) a; 9. Lakshmi Rental Loan (LRL): (16) (1) c; (2) d; (3) d; (4) c; (5) a; (6) d; (7) b; (8) c; (9) d; (10) b; (11) a; (12) b; (13) c; (14) c; (15) d; (16) b; 10. Lakshmi Easy Loan (LEL): (10)
(1) c; (2) b; (3) a; (4) d; (5) c; (6) c; (7) c; (8) a; (9) b; (10) d; 11. Lakshmi Kisan Credit Card (LKCC): (8) (1) b; (2) b; (3) a; (4) c; (5) a; (6) c; (7) c; (8) b; 12. Vidya Lakshmi Loan (VLL): (23) (1) d; (2) a; (3) d; (4) a; (5) b; (6) b; (7) c; (8) a; (9) d; (10) b; (11) a; (12) b; (13) a; (14) c; (15) d; (16) b; (17) b; (18) a; (19) c; (20) c; (21) b; (22) c; (23) a 13. Lakshmi Gold Power (LGP): (8) (1) a; (2) b; (3) c; (4) b; (5) a; (6) c; (7) c; (8) b;
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