SSC CHSL 2022 PYQ — Question 37

The correct answer is option 1 i.e. Cannot exceed 4 percent.

For an NBFC-MFI, the maximum variance permitted for individual loans between the minimum and maximum interest rate cannot exceed 4 percent. This regulation is designed to ensure that the interest rates charged by microfinance institutions remain reasonably uniform and fair, avoiding excessive disparity in the rates offered to different borrowers. This helps maintain transparency and protect the interests of borrowers, particularly those from economically weaker sections.