Multiple choice

The provisions of SARFAESI Act are not applicable in case of a loan account in which the amount due is

  1. 20% or less of principal amount

  2. less than 20% of principal amount

  3. 20% or less of principal amount and interest

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

The provisions of this act are applicable only for NPA loans with outstanding above Rs. 1 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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