PFM India Chapter 3

CIBIL stands for:

Which of the following are the functions or services provided by CIBIL?

CIBIL scores is generally between:

Which of the following is correct about personal loan:

Over the loan tenure with fixed EMI principal payment in each EMI — and interest payment—

The rate at which banks lend in India to each other on the wholesale debt market is called the:

“—- is used by the banks to determine an average rate at which it has borrowed all of its obligations.

While taking a loan against property how much loan is provided:

The property is pledged with the financial institution and the homeowner gets a set sum of money every month till the end of his life. Which of the following provide this facility?

Which of the following should be considered while finalizing a loan:

The process of repaying a high-cost debt by taking a low-cost debt is called:

“— is a situation where the lender is compelled to change the terms of the loan when the buyer is unable to make payments under the current set of terms or is delaying payments on that account.

The payment of one’s loan obligations lump sum wherein most or the entire amount is payable on one single date without any or few payments in between are called—

“— is where the borrower agrees to pay a part of the value of the asset purchased on the first day itself and then pays the rest of the value of the asset with interest gradually over a period of time in instalments.

Is credit card a revolving credit method.

In case of credit cards the option of Minimum Amount Due to keep the card running merely. The interest rate continues to be levied and payments continue to accrue despite paying the MAD.

Default in payment of credit card dues can destroy one’s CIBIL score.

The fixed rate loan if often less expensive than the variable interest rate loan

Which of the following statement is correct: STATEMENT 1: In case of reverse mortgage loan the bank can sale the property mortgage to recover the dues after the life of owners, heirs have no right on property; STATEMENT 2: In case of reverse mortgage loan, the inheritors if any, in event of death of owners may choose to repay the loan and keep the property or the bank sells the property and the dues are recovered.

A credit card repayment is one format of a Bullet payment.

In case of hire purchase, the buyer has to continue making the renewed EMI payments else he loses ownership of the product.