Multiple choice

Margin for working capital under 2nd method of lending suggested by Tandon Committee is

  1. 20% of working capital limit

  2. 25% of maximum permissible bank finance

  3. 25% of current assets

  4. 5% of projected sales
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

As per Tandon's second method of lending, the borrower has to arrange 25% of current assets/working capital gap as margin. 

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