The SIDBI Grade A MSMEs Practice Quiz has been prepared to help candidates revise important concepts related to Micro, Small and Medium Enterprises. MSME topics are especially important for the SIDBI Grade A exam because the organisation focuses on the development and financing of the MSME sector.
Candidates need to understand MSME policies, finance, regulations, credit, lending, and management concepts. Regular quiz practice can help improve conceptual clarity, accuracy, and exam readiness.
Download the SIDBI Grade A MSMEs Practice Quiz PDF
Candidates can download the free MSME Practice Quiz PDF and use it as a revision resource. The PDF can be attempted after completing the basic concepts of MSME policy, finance, credit, and management.
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Attempt SIDBI Grade A MSMEs Practice Quiz
Candidates can now attempt the free SIDBI Grade A MSMEs Practice Quiz to test their preparation. The quiz covers important areas such as MSME policy, finance, credit assessment, KYC, working capital, term loans, NPAs, and regulatory concepts.
1. An MSME has sales of Rs 500 lakh, EBIT margin 20%, interest expense Rs 25 lakh, current assets Rs 120 lakh and current liabilities Rs 140 lakh. For this question, treat current ratio >=1.33 and ICR >=2.00 as comfortable. Which assessment is correct?
2. An MSME has sales of Rs 550 lakh, EBIT margin 18%, interest expense Rs 35 lakh, current assets Rs 180 lakh and current liabilities Rs 160 lakh. For this question, treat current ratio >=1.33 and ICR >=2.00 as comfortable. Which assessment is correct?
3. Eligible stock is Rs 50 lakh with 30% margin and eligible receivables are Rs 50 lakh with 30% margin. Ignoring other exclusions, what is the drawing power?
4. Using DSCR = (PAT + depreciation + term-loan interest)/(principal repayment + term-loan interest), calculate DSCR if PAT is Rs 30 lakh, depreciation Rs 8 lakh, interest Rs 6 lakh and scheduled principal repayment Rs 35 lakh.
5. Assume an eligible CGTMSE credit facility of Rs 500 lakh to a SC/ST-owned MSE, and apply the standard coverage percentage for that category. What is the guarantee cover before other scheme adjustments?
6. Eligible stock is Rs 120 lakh with 25% margin and eligible receivables are Rs 100 lakh with 20% margin. Ignoring other exclusions, what is the drawing power?
7. An MSME has sales of Rs 600 lakh, EBIT margin 15%, interest expense Rs 20 lakh, current assets Rs 240 lakh and current liabilities Rs 180 lakh. For this question, treat current ratio >=1.33 and ICR >=2.00 as comfortable. Which assessment is correct?
8. Assume an eligible CGTMSE credit facility of Rs 500 lakh to a MSE in North East Region, and apply the standard coverage percentage for that category. What is the guarantee cover before other scheme adjustments?
9. Using DSCR = (PAT + depreciation + term-loan interest)/(principal repayment + term-loan interest), calculate DSCR if PAT is Rs 55 lakh, depreciation Rs 14 lakh, interest Rs 8 lakh and scheduled principal repayment Rs 25 lakh.
10. An MSME has sales of Rs 350 lakh, EBIT margin 20%, interest expense Rs 15 lakh, current assets Rs 280 lakh and current liabilities Rs 140 lakh. For this question, treat current ratio >=1.33 and ICR >=2.00 as comfortable. Which assessment is correct?
11. Current assets of a unit are Rs 62.5 lakh and current liabilities are Rs 50 lakh. What is net working capital?
12. Using DSCR = (PAT + depreciation + term-loan interest)/(principal repayment + term-loan interest), calculate DSCR if PAT is Rs 20 lakh, depreciation Rs 7 lakh, interest Rs 16 lakh and scheduled principal repayment Rs 40 lakh.
13. An MSME has sales of Rs 950 lakh, EBIT margin 15%, interest expense Rs 25 lakh, current assets Rs 180 lakh and current liabilities Rs 90 lakh. For this question, treat current ratio >=1.33 and ICR >=2.00 as comfortable. Which assessment is correct?
14. An enterprise has EBIT of Rs 48 lakh and annual interest expense of Rs 20 lakh. What is the interest coverage ratio?
15. Total debt of an MSME is Rs 60 lakh and tangible net worth is Rs 100 lakh. What is the debt-equity ratio?
16. Current assets of a unit are Rs 191.25 lakh and current liabilities are Rs 85 lakh. What is net working capital?
17. A borrower’s receivable days rise sharply while sales are flat. Which primary implication should a credit officer investigate first?
18. Total debt of an MSME is Rs 30 lakh and tangible net worth is Rs 30 lakh. What is the debt-equity ratio?
19. An MSME has sales of Rs 550 lakh, EBIT margin 15%, interest expense Rs 30 lakh, current assets Rs 160 lakh and current liabilities Rs 110 lakh. For this question, treat current ratio >=1.33 and ICR >=2.00 as comfortable. Which assessment is correct?
20. In an MSME credit appraisal, which response is technically correct for the following issue: Under the MSME classification effective from 1 April 2025, what is the investment ceiling for a micro enterprise?
Quiz Summary
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What is the SIDBI Grade A Phase 1 exam pattern?
General Awareness is one of the merit-based sections of the SIDBI Grade A Phase 1 exam. It contains 20 questions for 20 marks and is considered for shortlisting candidates for Phase 2. The section mainly checks awareness of banking, finance, the economy, government policies, and recent events. Candidates should combine static General Awareness with regular current affairs revision.
| Section | No. of Questions | Marks | Nature of Section | Key Details |
| English Language | 30 | 30 | Qualifying | Only English section; not counted for merit |
| Reasoning Aptitude | 25 | 25 | Qualifying | Must clear minimum cutoff |
| Quantitative Aptitude | 25 | 25 | Qualifying | Must clear minimum cutoff |
| Computer Knowledge | 20 | 20 | Qualifying | Basic computer ability |
| General Awareness (Banking, Financial Sector, ESI) | 20 | 20 | Merit | Counts for Phase 2 shortlisting |
| MSMEs: Policy, Regulatory & Legal Framework; Finance & Management | 30 | 30 | Merit | MSME-focused concepts |
| Stream-Specific Test (MSME Financing & Credit Assessment) | 50 | 50 | Merit | Major scoring area for Phase 2 shortlisting |
| Total | 200 | 200 | — | 120 minutes; bilingual except English |
What are the important MSME topics for SIDBI Grade A?
Candidates should understand the complete MSME ecosystem, including policies, regulations, financing, credit assessment, and recovery. They should also revise concepts related to working capital, term loans, KYC, financial analysis, and credit risk. Questions can test both basic knowledge and practical understanding of MSME lending.
- MSME policy framework
- MSME regulatory framework
- MSME legal framework
- MSME promotion and development
- MSME financing
- Credit appraisal
- Credit risk
- KYC and due diligence
- Financial ratios
- Financial statement analysis
- Working capital
- Term loans
- NPA and recovery
- IRAC norms
- NBFC financing
- Documentary credit
What are the important MSME finance topics for SIDBI Grade A?
MSME finance is an important area because candidates are expected to understand how businesses receive and manage credit. Focus on the basics of working capital, term loans, credit assessment, financial ratios, and repayment capacity.
| Topic | Key Areas to Revise |
| MSME Financing | Sources and types of finance |
| Credit Appraisal | Borrower and business assessment |
| KYC | Customer identification and due diligence |
| Financial Analysis | Financial statements and ratios |
| Working Capital | Working capital assessment and financing |
| Term Loans | Purpose, assessment and repayment |
| Credit Risk | Identification and assessment |
| NPA & Recovery | NPA classification and recovery process |
| IRAC Norms | Income recognition and asset classification |
| NBFC Financing | Financing through NBFCs |
What should candidates study under MSME policy and regulatory framework?
The policy and regulatory part helps candidates understand how the MSME sector is supported and regulated. Candidates should revise important government policies, MSME development initiatives, institutional support, and regulatory provisions. They should also stay updated with major changes in policies and programmes related to MSMEs.
- MSME classification
- MSME policy framework
- MSME development initiatives
- Government schemes
- Institutional support
- Regulatory framework
- Legal provisions related to MSMEs
- Credit support initiatives
- Financial inclusion
- MSME promotion and development
What are the important credit assessment topics for the MSME quiz?
Credit assessment is an important part of MSME financing. Candidates should understand how lenders evaluate a borrower’s financial position, repayment capacity, business performance, and credit risk. Concepts such as KYC, due diligence, financial ratios, working capital assessment, and term loan assessment should be revised carefully.
- Borrower assessment
- Business assessment
- Due diligence
- KYC
- Creditworthiness
- Financial statements
- Financial ratios
- Repayment capacity
- Working capital assessment
- Term loan assessment
- Credit risk assessment
FAQs
There are 30 questions carrying 30 marks.
Yes, it is a merit-based section considered for Phase 2 shortlisting.
Candidates should study MSME policies, regulations, finance, KYC, credit appraisal, working capital, term loans, NPAs, and credit risk.
Yes, MSME finance is an important part of the Phase 1 and General Stream preparation.
Yes, credit appraisal and assessment of borrowers are important areas under MSME financing.
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