Banking Awareness Quiz for Bank Exams 2021- 19th April

Q1. Bank provides loans for
(a)Car
(b)Home
(c)Education
(d)All the above
(e)None of these

Q2. What is loan limit for education under priority sector lending for studying in India and Abroad respectively?
(a)Rs. 20 Lakhs, Rs.40 Lakhs
(b) Rs.25 Lakhs, Rs.20 Lakhs
(c) Rs.10 Lakhs, Rs.20 Lakhs
(d) Rs.15 Lakhs, Rs.30 Lakhs
(e) Rs.10 Lakhs, Rs.25 Lakhs

Q3. What is the maximum loan amount available under PMMY (Pradhan Mantri Mudra Yojana)?
(a)10 Lakhs
(b)30 Lakhs
(c)20 Lakhs
(d)15 Lakhs
(e)5 Lakhs

Q4. What is the full form of EMI?
(a) Equal Monthly Installment
(b) Equated Monthly Installment
(c) Equated Money Installment
(d) Equal Money Installment
(e)None of the above

Q5. What is a conventional loan?
(a) Short term loan
(b) Mortgage loan
(c) Interest credit
(d) Long term loan
(e)None of the above

Q6. Bank does not give loan against (a)LIC policy
(b)Gold Ornaments (c)NSC
(d)Lottery Ticket
(e)None of The Above

Q7. From the following which types of loan is a bank guarantee?
(a)Unsecured
(b)Personal
(c)Commercial
(d)Secured
(e)None of these

Q8. Personal loans are also called as by which of the following names?
(a)Signature loan
(b)Unsecured loan
(c)Both A and B
(d)Commercial loan
(e)None of these

Q9. Packing credit is a type of loans generally given to______
(a)Salaried person
(b)Exporters
(c)Students
(d)Home
(e)None of these

Q10. What is the maximum loan duration for the Personal loan?
(a)3-5 years
(b)2-5 years
(c)2-10 years
(d)1-5 years
(e)1-7 years

Practice More Questions of Banking Awareness for Competitive Exams:

Solutions

S1.Ans(d)
Sol. The common types of loans that people avail are: Home Loan, Car Loan, Education Loan, Personal Loan, Business Loan, Gold Loan etc.

S2.Ans(c)
Sol. The Indian Banks Association has a Model Education Loan Scheme under which loans up to ₹10 lakh are offered for higher education in India and ₹20 lakh for studies abroad.

S3.Ans(a)
Sol. The maximum loan amount offered under PMMY (Pradhan Mantri Mudra Yojana) is up to Rs. 10 lakh with repayment tenure up to 5 years.

S4.Ans(b)
Sol. An equated monthly installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

S5.Ans(b)
Sol. A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower.

S6.Ans(d)
Sol. Bank does not give loan against Lottery Ticket.

S7.Ans(c)
Sol. Commercial loan is a bank guarantee.

S8.Ans(c)
Sol. Personal loans are sometimes called signature loans or unsecured loans because there is typically no collateral required to secure a personal loan.

S9.Ans(b)
Sol. Packing credit is a type of loans generally given to Exporters.

S10.Ans(d)
Sol. The maximum loan duration for the Personal loan can be 1 to 5 years or 12 to 60 months. Shorter or longer tenures may be allowed on a case-by-case basis, but it is rare.

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