Banking Exam Question - What is Short Term, Medium Term & Long Term Loan? Explain it's Investment Areas?

Introduction - Short Term, Medium Term & Long Term Loan in Banks

1) Short term loan

• This loan is provided for a period of 2 years.
• Individuals are provided co-operatives and corporate bodies.

The major areas of this loan are as follows:

• Production
• Current capital
• Market development
• Non-profit actions

2) Medium term loan 

• Provided for the period of two years to 7 years.
• The person and cooperative organizations have been provided.

Loan areas provided

• Irrigation
• Mechanics
• Agricultural industry
• Animal Husbandry
• Agriculture and trade

3) Long term loan service

• This loan is provided for a period of 7 years or more.
• Such kind of loan is provided to both the person or the organization.

Here are the areas providing this loan:

• Warehouse
• Cold Store
• Tea farming
• Coffee farming
• Herti culture crops
• Fruit cultivation
  

In this way, the bank has started raising credit in various sectors in the country's economic development.