Read the following information carefully and answer the question given below:
Following are the conditions for granting advance of ₹ 15 lakh to the farmers for purchasing a tractor by a Gramin Bank. The farmer must:
I. have atleast six acres of cultivate land
II. not be more than 49 years as on 2.12.2013.
III. be able to produce collateral of atleast ₹ 10 lakh.
IV. not have any outstanding unpaid loan from any bank.
V. be able to produce recommendation letter from the Panchayat Pradhan
In case of farmer who satisfies all other criteria except at (I) above, but is able to cultivate more than one crop in each piece of land, the case is to be referred to chairman of the bank.
Mohan was born on 2 Feb, 1980. He has seven acres of cultivate land. He has submitted a recommendation letter issued by the Panchayat Pradhan. He can pledge collateral of more than ₹ 10 lakh. He does not have any unpaid loan from the bank.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → If the advance is to be granted
Mohan’s details are checked against each of the five conditions in turn. The case goes to the Chairman only when condition (I) alone fails, so if all five are met the advance is granted.
(I) At least six acres of cultivable land — met: he has seven acres.
(II) Not more than 49 years on 2.12.2013 — met: born on 2 February 1980, he was 33 years old on that date.
(III) Collateral of at least ₹ 10 lakh — met: he can pledge more than ₹ 10 lakh.
(IV) No outstanding unpaid loan from any bank — met: the data say he has no unpaid loan, which is read as meeting this condition.
(V) Recommendation letter from the Panchayat Pradhan — met: he has submitted it.