MCQ SME Loan Products_May 06

Page 1 of 7 MCQ- On SME Loan Products STATE BANK OF INDIA, STATE BANK LEARNING CENTRE, BANGALORE MULTIPLE CHOICE QUESTIONS ON SME LOAN PRODUCTS 1. As per Bank norms, SMEs will have annual turn over upto :a) b) c) d)

Rs.5 crores Rs.1 crore Rs.25 crores Rs.350 crores

2. As per Bank’s definition, SMEs include a) b) c) d)

Manufacturing units only SSI units only Mfg units and Business units under SBF and C&I units Business units only

3. As per GOI, SMEs will have maximum original cost of investment in Plant and Machinery :a) b) c) d)

Rs.1 crore Rs.5 crores Rs.10 crores Rs.100 crores

4. SME Credit Card for working capital limits is valid for:a) c)

1 year 5 years

b) d)

3 years indefinite period

5. To what category of customers, SME Credit Card Limit can be sanctioned? a) c)

SSI units only SSI & SBF units

b) d)

SBF units only Only for Credit Card Holders

6. A SSI customer approaches you for a credit facility of Rs.10 lacs. Under which schemes he is eligible for finance? a) c)

SME Credit Card SME Credit Card & SME Smart Score

b) d)

SME Smart Score None of the above

7. A trader approaches you for a working capital requirement of Rs.15 lacs. Under which schemes he is eligible for finance? a) b) c) d)

SME Credit Card and SME Smart Score SME Smart Score SME Smart Score and Mortgage Loan for T&S None of the above

H.R. Shantharam, Manager (Trg), SBLC, Bangalore

Page 2 of 7 MCQ- On SME Loan Products 8. Submission of monthly stock statements is not required in one of the following loan schemes:a) c)

SME Smart Score Rice Mill Plus

b) d)

SME Credit Card Dall Mill Plus

9. Under which scheme we sanction working capital limits entirely based on Receivables of the unit? a) c)

Cyber Plus Arthias Plus

b) d)

Artisan Credit Card Rent Plus

10. Under which scheme, we sanction clean cash credit limit to meet the exigencies? a) c)

SME Smart Score SME Credit Plus

b) d)

SME Credit Card Car Loans to SMEs

11. When we sanction SME Credit Plus limits to certain types of SSI units, the repayment in the account is extended upto 6 months. Name this scheme? a) c)

Rice Mill Plus (a) and (b) above

b) d)

Dall Mill Plus None of the above

12. We give loans to the entrepreneurs in coordination with “N-Logue” company which is promoted by IIT Chennai. The Scheme is called:a) c)

School Plus SBI Student Loans

b) d)

Nursing Plus Cyber Plus

13. How many units, will we finance in a village Under “Cyber Plus”? a) c)

2 units maximum atleast 2 units

b) d)

atleast one unit only one unit

14. Upto which amount, obtention of collateral security is exempted for an allopathic doctor under “Doctor Plus”? a) c)

Rs. 5 lacs Rs.2.50 lacs

b) d)

Rs.10 lacs Rs.15 lacs

15. What is the validity period of Artisan Credit Card ? a) c)

5 years 1 year

b) c)

3 years none of the above

16. What type of limits are sanctioned under Swarojgar Credit Card? a) c)

Term Loan Cash Credit Loan

b) d)

Composite Loan both CC and TL

H.R. Shantharam, Manager (Trg), SBLC, Bangalore

Page 3 of 7 MCQ- On SME Loan Products 17. Scoring Model is not prescribed under the following Credit Card:a) c)

Artisan Credit Card SME Credit Card

b) d)

Swarojgar Credit Card None of the above

18. How do you arrive at the credit requirement of Professionals and Self-Employed persons under SME Credit Card? a) b) c) d)

20% of projected annual turnover 20% of turnover recorded for tax purposes 50% of Gross annual income 100% gross annual income

19. Are audited financial statements required for sanction of SME Credit Card Limits? a) c) d)

Yes b) No yes if the advance is Rs.5 lacs or above Yes if the advance is Rs.1 lac and above

20. To renew the CC Limit under SME CC, how much minimum % of credit summations are required in the account? a) c)

60% of projected turnover b) 100% of projected turnover d)

50% of projected turnover 75% of projected turnover

21. At what periodicity stock statements are to be submitted under SME CC? a) b) c) d)

at the time of sanction only At the time of sanction and yearly once on 28 th February Monthly once Quarterly once

22. Scoring model is not prescribed for sanction of loans under the following Scheme:a) c)

SME CC SME Credit Plus

b) d)

SME Smart Score None of the above

23. One of these is not a precondition for sanction of loan under SME SS:a) b) c) d)

Chief promoter’s age shall not exceed 65 years None of the promoters had defaulted payment to the Bank in the past All the clearances from the Government departments must have been received Loans can not be given to proprietorship firms

24. One of the following scheme is available only to SSI units:a) SME Credit Card b) SME Credit Plus c) SME Smart Score d) Car Loans to SMEs H.R. Shantharam, Manager (Trg), SBLC, Bangalore

Page 4 of 7 MCQ- On SME Loan Products 25. How many times a borrower can draw amounts from Account sanctioned under SME Credit Plus? a) c)

6 times in a year 24 times in a year

b) d)

12 times in a year any number of times

26. What is the loan scheme similar to SME Credit Plus with higher limits of Credit? a) c)

Corporate Loan Stand by Line of Credit

b) d)

Flexi Loan to T&S units General Purpose TL for SSI sector

27. What is the scheme available for loans to traders based predominantly on value of immovable property offered as collateral security? a) c)

Mortgage loans for T&S Working capital loans for T&S

b) d)

General Purpose TL for T&S sector None of the above

28. What is the maximum amount of loan that we can sanction based on value of property under Mortgage Loans to T&S? a) b) c) d)

75% of market value of property Max Rs.5 crores 65% of market value of property Max Rs.5 crores 75% of realisable value of property Max Rs. 5 crores 65% of realisable value of property Max Rs. 5 crores

29. Find the odd man out, depending upon the nature and purpose of the schemes:a) c)

Corporate Loan Stand by Line of Credit

b) d)

Flexi Loan to T&S units General Purpose TL for SSI sector

30. What is the scheme available for sanction of loan based on the assignment of future rentals? a) c)

SME Credit Card SME Smart Score

b) d)

Rent Plus SBI Saral

31. This is not one of the features of Channel Financing:a) b) c) d)

Corporates are selected by CGM CAG, or CGM Credit Applicable only in 308 CMP enabled branches We can sanction either CC or TL or both Margin 25%

32. This is not one of the features of Fast Track Channel Financing:a) b) c) d)

Industry Majors are selected by CGM CAG or CGM Credit Applicable in 308 CMP enabled branches We can sanction either CC or TL or both Dealer’s account must be maintained at the branch where the account of the Industry Major is maintained

H.R. Shantharam, Manager (Trg), SBLC, Bangalore

Page 5 of 7 MCQ- On SME Loan Products 33. Under which segment we classify the loan sanctioned to Commission agent situated at semi-urban or rural area? a) c)

SBF Sub-segment Agricultural Segment

b) d)

C&I Segment Retail Trader

34. What is the maximum period of outstandings is permitted for receivables, while assessing the drawing power under Arthias Plus Scheme? a) c)

3 months 6 months

b) d)

4 months one month

35. Paryatan Plus is the scheme for financing the entrepreneurs of the following industry:a) c)

Transport industry entertainment industry

b) d)

Hotel industry Tourism Industry

36. If we sanction limit to a rice mill under Rice Mill Plus, the drawal under SME Cr+ can be repaid within what period? a) c)

2 months 6 months

b) d)

3 months 1 month

37. What is the facility we sanction under School Plus? a) c)

term loan Composite Loan

b) d)

Cash Credit Demand Loan

38. The purpose of Auto Clean loan is :a) b) c) d)

To finance Automobile servicing units To finance auto rickshaw servicing units To finance for conversion of auto rickshaws into CNG/LPG operated vehicles To purchase a Brand New Auto rickshaw

39. The Following scheme is not available for SSI units:a) c) e) g)

SME CC SME CP SBI Shoppe Channel Financing

b) d) f)

SME SS GPTL Rent Plus

40. Which scheme is suitable for purchase of a shop in a commercial complex ? a) c)

SBI Shoppe Plus Flexi Loan for Traders

b) d)

SME Shoppe SBI Shoppe

41. Can we give working capital loans for a Private Builder? H.R. Shantharam, Manager (Trg), SBLC, Bangalore

Page 6 of 7 MCQ- On SME Loan Products a)

Yes

b)

No

42. What is the margin we have to keep for sanction of working capital finance to private builders? a) c)

15% of project cost 1 month average expenses

b) d)

50% of project cost 3 months average expenses

43. What is the maximum period of repayment allowed for Term Loans to Large Private Builders? a) 1 year b) 18 months c) 2 years d) 60 months 44. What is the maximum period of repayment allowed for Working capital finance to Private Builders? a) c)

1 year 2 years

b) d)

18 months renewable every year

45. A reputed school in your area has approached you for finance to purchase a bus for transportation of students. Which type of scheme is suitable for finance of such purpose? a) c)

Transport plus School Plus

b) d)

Teacher Plus None of the above

46. Under which scheme the local relatives of the NRIs who want loans for commercial purposes can be accommodated? a) Paryatan Plus b) Pravasi Plus c) SME Credit Plus d) SME Smart Score 47. With which company’s tie-up we will finance Petroleum Dealers under Petro Credit Scheme? a) Indian Oil Corporation b) Hindustan Petroleum c) Bharat Petroleum d) Reliance Petroleum Limited 48. Under Express Vendor Discount Scheme, loans are sanctioned against which of type of primary security? a) Stocks b) Bills c) Receivables d) Receivables from Industry major 49. Transport Plus scheme will cater to the needs of the following segment of customers:a) Transport Operators under SBF b) Ship Owners c) Truck Owners d) Surface transport operators under C&I Segment 50.

Can we sanction Working Capital Limits under Transport Plus Scheme?

a)

Yes

b)

No

H.R. Shantharam, Manager (Trg), SBLC, Bangalore

Page 7 of 7 MCQ- On SME Loan Products

ANSWERS TO QUESTIONS 1

C

2

C

3

C

4

B

5

C

6

C

7

C

8

B

9

C

1 1 2 1 3 1 4 1

C

1 2 2 2 3 2 4 2

D

1 3 2 3 3 3 4 3

D

1 4 2 4 3 4 4 4

B

1 5 2 5 3 5 4 5

3

1 6 2 6 3 6 4 6

B

1 7 2 7 3 7 4 7

B

1 8 2 8 3 8 4 8

D

1 9 2 9 3 9 4 9

B

B B A

C C B

D C D

C C C

B D C

C C B

A A D

H.R. Shantharam, Manager (Trg), SBLC, Bangalore

D C D

C G D

1 0 2 0 3 0 4 0 5 0

C B B D A