Multiple choice

The provisions of SARFAESI Act are applicable in which of the following transactions?

  1. A lien or pledge on any goods as per Indian Contract Act

  2. Security interest created on agricultural land

  3. Loan amount above Rs. 1 lac

  4. Balance amount less than 20% of the principal amount and interest
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The provisions of this Act are applicable only for NPA loans with outstanding above Rs. 1.00 lac. NPA loan accounts where the amount is less than 20% of the principal and interest are not eligible to be dealt with under this Act.

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