Question

    The term “evergreening of loans” refers to:

    A Over-assessment of creditworthiness Correct Answer Incorrect Answer
    B Repeated renewal of unpaid loans Correct Answer Incorrect Answer
    C Issuance of loans to directors’ relatives Correct Answer Incorrect Answer
    D Excessive interest charges Correct Answer Incorrect Answer
    E Non-compliance with KYC norms Correct Answer Incorrect Answer

    Solution

    “Evergreening of loans” involves renewing loans continuously to avoid classifying them as defaults.

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