A) Fetching very low rate of interests
B) For which interest/instalment has remained unpaid well after due date
C) Which have not been disbursed at all
D) Given to sick industrial units
Correct Answer: B
Solution :
[b] Once the borrower has failed to make interest or principle payments for 90 days the loan is considered to be a non-performing asset. Non-performing assets are problematic for financial institutions since they depend on interest payments for income. Troublesome pressure from the economy can lead to a sharp increase in non-performing loans and often results in massive write-downs.
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