BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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three months
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six months
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nine months
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one year
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Detailed explanation-1: -Short term loans are called such because of how quickly the loan needs to be paid off. In most cases, it must be paid off within six months to a year – at most, 18 months. Any longer loan term than that is considered a medium term or long term loan.
Detailed explanation-2: -(i) Short Term (Seasonal Agricultural Operations) Refinance is provided for production purposes at concessional rate of interest to State Co-operative Banks (StCBs) and Regional Rural Banks (RRBs) by way of sanction of credit limits. Each withdrawal against the sanctioned credit limit is repayable within 12 months.
Detailed explanation-3: -In case of agriculture loans, there are three types of loans viz. Short term (tenure <15 months), medium term (tenure 15 months to 5 years) and long terms (tenure > 5 years).
Detailed explanation-4: -Banks gives agricultural term loans in the form of direct finance to cultivators to create assets facilitating crop production / income generation. Repayments span not less than 3 years and not exceeding 15 years.