SME EXAMINATION QUESTION PAPERS

1.Financing of both working capital and term loan simultaneously is called

as?
a) Mixed loan
b) Composite loan*
c) Combined loan
d) Loan syndication

2. What is the maximum amount that can be sanctioned under Transport

plus for Corporates?
a) 1 Cr
b) 5 Cr
c) 10 Cr*
d) 20 Cr

3. Debt Restructuring Mechanism for SMEs scheme covers fund/non-fund

based outstanding up to
a) 1 Cr
b) 5 Cr
c) 10 Cr*
d) 15 Cr

4. All manufacturing units defined in MSMED Act,2006 when engaged in

exports are classified as priority sector advances.
a. No, only Micro and small manufacturing units fall under the category of
priority sector.*
b. No, only Micro manufacturing units fall under the category of priority
sector
c. No, only small manufacturing units fall under the category of priority
sector
d. Yes, all units fall under the category of priority sector.

5. Advances to manufacturing units which are classified as medium

enterprises under MSMED Act,2006 fall under the category of
a. Priority sector advances.
b. Non-priority sector C&I advances*
c. Priority sector C&I advances
d. Indirect priority sector advances.

6. Primary security in the context of CGTMSE mean

a. Assets created out of the credit facility
b. Land & building of factory/office/ godown etc which pertains to the unit and
associated with the project and is unencumbered.
c. Personal guarantee of the proprietor.
d. All the above.*

7. SMECFL (SME collateral free loans) are available for limits

a. From Rs.5.00 lakhs to Rs.1.00 Crores.
b. From Rs.10.00 lakhs to Rs.1.00 Crores.
c. Up to Rs.10.00 lakhs.
d. None of the above.*

8. As per recent RBI guidelines

a. No collateral should be accepted for all MSE sector manufacturing loans
up to Rs.10.00 lakhs.
b. No collateral should be accepted for all MSE sector service enterprise
loans up to Rs.5.00 lakhs
c. No collateral should be accepted for all MSE sector manufacturing &
servoice sector loans up to Rs.5.00 lakhs
d. No collateral should be accepted for all MSE sector manufacturing and
service sector loans up to Rs.10.00 lakhs*

9. As per MSMED Act 2006, Medium (manufacturing) Enterprises will have

maximum investment in plant and machinery with original cost not
exceeding:
a) Rs 2 Cr
b) Rs 5 Cr
c) Rs 10 Cr
d) Rs 25 lacs

10. As per RBI guidelines, what is the share of Micro enterprise advances
as part of total advances to MSE (Micro & Small Enterprises).
a) 50%
b) 80%
c) 60%*
d) 55%
11. As per RBI guidelines, how much of the advances to Micro & Small
Enterprises should go to Micro enterprises (manufacturing) having
investment in P&M above Rs.5.00 lakhs and up to Rs.25.00 lakhs and
Micro enterprises (services) having investment in equipment above Rs.2.00
lakhs and up to Rs.10.00 lakhs.
a) 40%
b) 20%*
c) 50%
d) 35%

12. As per RBI guidelines, how much of the advances to Micro & Small
enterprises should go to Micro enterprises (manufacturing) having
investment in P&M up to Rs.5.00 lakhs and micro enterprises (services)
having investment in equipment up to Rs.2.00 lakhs ?
a) 40% *
b) 20%
c) 50%
d) 35%

13. RBI has advised that no collateral security should be insisted for SMEs
advances up to Rs .
a) 5 lacs
b) 10 lacs*
c) 25 lacs
d) 50 lacs

14. How many vehicles the transport operator should have under Transport
Plus?
a) 10*
b) 20
c) 30

15. Under revised definition of priority sector retail transporter is defined as

:
a) Transporter having 10 vehicles including the one financed by us
b) Owner having 10 vehicles at the most
c) Owners having any No of vehicles the cost of which does
not exceed Rs 2 Crs*
d) Owner having 10 vehicles up to a max of Rs 3 Crs
16. What is the Investment limit, for a SSI unit in Plant & Machinery
(original cost excluding land and building etc)to be categorized as Priority
sector advance under SME segment
a up to Rs.10.00 crore
b up to Rs.2.00 crore
c up to Rs.6.00 crore
d up to Rs.5.00 crore*

17. SME
As per recent guidelines, 40% of the total advances to micro and small
enterprises sector should go to micro (manufacturing) enterprises having
investment in plant and machinery up to ….. Lakh and micro (service)
enterprises having investment in equipment up to ….. Lakh.
a) Rs 10 & Rs 4*
b) Rs 5 & Rs 2
c) Rs 10 & Rs 5
d) Rs 2 & Rs 5

18. In respect of CGTMSE (Credit Guarantee fund Trust for Micro and
Small Enterprises) No collateral and no third party guarantee for fund
based and non fund based credit facilities up to ___
A. Rs. 10.00 lakhs
B. Rs. 5.00 lakhs*
C. Rs.100 lakhs
D. Rs. 5 lakhs

19. Which of the following institution is meant for small and medium
enterprises?
A. RBI
B. SIDBI*
C. IFCI
D. NABARD

20. CGTMSE (Credit Guarantee Fund Trust for Micro and Small
Enterprises) has been set up on the recommendations of:
A. Narashimham Committee
B. Ghosh Committee
C.Chore Committee
D. Kapoor Committee*
21. According to "Micro small medium enterprise development Act – 2006
(MSME Act – 2006)" investment limit for micro enterprise in manufacturing
sector is
A. Less than Rs. 10 lakh
B. Less than Rs. 25 lakh*
C. Rs. 50 lakh
D. Rs. 20 crore

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