Question

Consider the following statements
1. An individual is called a willful defaulter if he/she does not pay back loan inspite of having the capacity to pay
2. If the funds are not used for the purpose mentioned it can be classified as willful default

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. None of the above

Answer 1

The correct option is C Both 1 and 2

A willful defaulter is a person if he/she does not pay back loan inspite of having the capacity to pay.RBI has also clarified that a borrower can be declared a willful defaulter if it was found that borrowed funds were used for purposes other than for which the loan was availed for.