Financial Awareness - Risk, Stability & Emerging Finance
Which of the following loans is classified under Priority Sector Lending as export credit?
Which of the following loans is classified under Priority Sector Lending as export credit?
medium Q5 of 15
Step-by-Step Solution
Step 1: Understand export credit under PSL
Export credit under PSL includes loans to exporters of agricultural products and other specified goods.Step 2: Distinguish valid export credit
Loans to exporters of agricultural products qualify under PSL. Loans to exporters of non-priority sector goods, those with turnover above Rs. 100 crore, or capital goods only do not automatically qualify.Final Answer:
Loans to exporters of agricultural products → Option DQuick Check:
Loans to exporters of agricultural products = correct ✅
Quick Trick: Focus on agricultural exporters for export credit under PSL.
Common Mistakes:
- Assuming all exporters or turnover-based exclusions apply under PSL export credit.
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