ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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short term credit
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medium term credit
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long term credit
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all of these
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Detailed explanation-1: -Long-term loan/credit: The repayment duration of a long-term loan is usually 5 to 20 years or even more in a few exceptional cases. In any business, long-term finance is essential to create permanent assets that will return over a period of time.
Detailed explanation-2: -Definition. Long-term finance can be defined as any financial instrument with maturity exceeding one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.
Detailed explanation-3: -Long Term Loan The tenure of such a loan could be as long as 30 yea₹ Some examples are education loan, car loan, home loan, small business loan, and long-term personal loans among other.
Detailed explanation-4: -Credit available for a period of 15 months to 5 years is termed as medium term credit.In order to fulfill the financial requirements of the agricultural sector in rural India, appropriate and specialized credit agencies are needed. Credit helped to increase the productive capacity.
Detailed explanation-5: -Long term credit: Farmers also require finance for a long period of more than 5 years just for the purpose of buying additional land or for making any permanent improvement on land like the sinking of wells, reclamation of land, horticulture etc.