80-Personal Loans

Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Personal Loans for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank

1. What is the full form of EMI?

[A] Equal Monthly Installment
[B] Equated Monthly Installment
[C] Equal Monthly Income
[D] Equated Monthly Incentive

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2. Personal Loans are also called as by which of the following names?

[A] Signature Loans
[B] Unsecured Loans
[C] Consumer Loans
[D] All of the Above

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3. What is the maximum loan duration for the Personal Loan?

[A] 1-5 years
[B] 2-4 years
[C] 1-8 years
[D] 1-10 years

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4. What is the maximum loan amount permitted under the Personal Loan in India?

[A] Depends upon the income of the borrower
[B] Maximum amount is such that EMI is not more than 40-50% of the monthly income.
[C] Unlimited
[D] Both a and b

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5. What is the status of Interest rate on Personal Loans as compared to the Home and Car Loans?

[A] Higher than Home and Car Loans
[B] Lower than Home and Car Loans
[C] Equal to Home and Car Loans
[D] Can not be compared

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6. What is the full form of MCLR?

[A] Marginal Cost of Funds based Lending Rate
[B] Marginal Cost of Lending Rate
[C] Multiple Commodity Lending Rate
[D] None of the Above

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7. Which of the following best define the term Relationship discount?

[A] It is given to the couple applying for personal loans.
[B] It is an additional benefit by banks.
[C] It is given to a prospective applicant if they have a pre-existing relationship with the lender.
[D] Both b and c

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8. Which of the following are the ways to repay the personal loan?

[A] Equated Monthly Installments via Cheques
[B] Electronic Clearing Services
[C] Cash
[D] Both a and b

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9. What are the Pre-Payment charges applied on paying personal loan before tenure period.

[A] 10% of the Principal
[B] 5% of the Principal
[C] 1-2% of the Principal
[D] 7% of the Principal

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10. What are the Pre-Closure charges applied on paying personal loan before tenure period.

[A] 2-4 % of Principal
[B] 2-5% of the Principal
[C] 1-9% of the Principal
[D] 7-8% of the Principal

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