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. |