SBI PO Mains English Sectional Mock Test 06

1. Read the following passage carefully and answer the questions given after it. When the monsoon failed for the second year in a row, the small branch at Kheda faced a problem no training manual had prepared it for. Its crop-loan book, built carefully over a decade, began to sour at the edges. Yet the branch did not panic. The manager, who had spent her first posting in a drought-prone district, knew that a bad harvest does not make a bad borrower. She called a meeting of the village sarpanch, the local input dealer and the insurance agent, and together they drew up a list of every borrower whose crop had genuinely failed. Those farmers were offered a one-year restructuring of their loans, with interest deferred rather than waived. The insurance claims, filed within a week of the crop-cutting experiment, were chased every single day until they were settled. By March, ninety-two of the hundred-odd accounts were regular again. The eight that were not had a different story: three borrowers had diverted the loan to marry off daughters, two had simply vanished, and three were wilful defaulters who owned tractors and tube-wells but claimed poverty. The manager's lesson was simple. Credit discipline is not the enemy of compassion; it is what makes compassion affordable. A bank that forgives every default soon has nothing left to lend, while a bank that punishes every delay soon has no customers left to serve.

   Q1.According to the passage, why did the Kheda branch not panic when crop loans began to sour?

   • A.The branch had already written off the loans in advance.
   • B.The manager knew a failed harvest does not make a borrower dishonest.
   • C.The insurance company had promised to pay every claim in full.
   • D.The village sarpanch guaranteed repayment from panchayat funds.
   • E.The branch had stopped lending to farmers the previous year.

2. Q2.What did the branch offer the farmers whose crops had genuinely failed?

   • A.A complete waiver of both principal and interest.
   • B.A fresh loan at a lower rate of interest.
   • C.A one-year restructuring with interest deferred rather than waived.
   • D.A cash grant from the village development fund.
   • E.A transfer of their loans to another bank.

3. Q3.What does the figure 'ninety-two of the hundred-odd accounts' show?

   • A.That the insurance company paid all claims on time.
   • B.That nearly all the troubled accounts became regular again by March.
   • C.That only eight farmers in the village had taken loans.
   • D.That the branch had recovered the full loan amount.
   • E.That the sarpanch had settled the dues himself.

Start the test to answer these. Correct answers and explanations are shown after you submit.