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Single Answer MCQ
Q-00045485

Which of the following is NOT a characteristic of formal sector loans?

1

Regulated by RBI

2

Leads to higher customer interest rates

3

Requires documentation

4

Targeted at diverse borrowers

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Sandeep Chaturvedi

Sandeep Chaturvedi

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Answer and Solution

Answer

B. Leads to higher customer interest rates

Solution:

Formal sector loans are typically characterized by regulated interest rates, thus they do not lead to higher customer interest rates compared to informal sector loans.

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