Question

Which of the following statements about MSME loans is TRUE?

• A. They can only be secured loans.
• B. They can only be used for daily operations.
• C. They can be both secured or unsecured, and help in expansion, working capital, and technology adoption.
• D. They cannot be used to buy machinery.

Answer 1

Answer:

C. They can be both secured or unsecured, and help in expansion, working capital, and technology adoption.

MSME loans are versatile — they can be secured or unsecured and help businesses buy machinery, raw materials, manage working capital, expand operations, or adopt new technology.