Question

Match List-I with List-II

List-I (Types of Loan) & List-II (Definition)
(A). Self liquidating loan & (I). Loan extended based on confidence between borrower and lender
(B). Unsecured loan & (II). The loan advanced against the produce kept under the control of the lending institution
(C). Chattel loan & (III). The loan from which income generated help the farmer to repay entire loan amount in the same season or accounting year
(D). Key loan & (IV). Specific type of loan advanced against movable properties
Choose the correct answer from the options given below:

• (A) - (III), (B) - (I), (C) - (IV), (D) - (II)
• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
• (A) - (II), (B) - (III), (C) - (IV), (D) - (I)

Hint:

To remember:
- Key Loan: Collateral is agricultural produce kept literally under the bank's lock and key.
- Chattel Loan: Collateral is movable property (livestock, machinery).
- Self-liquidating: Repays itself within one season.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Agricultural credit is classified into different categories based on the security provided, repayment terms, and the purpose of the loan.

Step 2: Detailed Explanation:
Let us match each type of loan with its correct definition:
- (A). Self liquidating loan: This is a short-term crop loan used to purchase inputs like seeds and fertilizers.
The income generated from harvesting and selling the crop is sufficient to repay the entire loan principal and interest within the same crop season or accounting year, matching (III).
- (B). Unsecured loan: This loan is extended without requiring any physical collateral (such as land or gold).
It is granted based entirely on the trust, creditworthiness, and confidence between the borrower and the lender, matching (I).
- (C). Chattel loan: This is a secured loan granted against movable personal property, such as livestock, tractors, or farm machinery, which serves as collateral, matching (IV).
- (D). Key loan: This is a loan advanced against harvested agricultural produce stored in a warehouse.
The stored produce is kept under the physical control (lock and key) of the lending bank until the loan is repaid, matching (II).
This gives the matching: (A) - (III), (B) - (I), (C) - (IV), (D) - (II).

Step 3: Final Answer:
The correct match is Option (A).