Question

Distinguish between
Call Loans and Long Term Loans.

Answer 1

Sr.No.	Call Loans	Sr.No.	Long Term Loans
(a)	Loans provided by commercial banks for a short period of say 7 to 15 days are known as call loans.	(a)	Loans provided by commercial banks for a period of more than 5 years are called long term loans.
(b)	These loans are taken for investment in stock market.	(b)	Such loans are taken by producers to introduce permanent change in methods of production, technique of production etc.
(c)	The rate of interest is lowest.	(c)	High rate of interest is charged on such loans.
(d)	These loans can be called back any time.	(d)	These loans can not be called back any time. They are to be repaid within the stipulated time period.