Correspondence with Banks — Secretarial Practice STD 11 Commerce / Arts — Question

A loan granted for a specific time period against personal security, gold or silver, and movable and immovable assets is called a term loan.
Types of term loans:

• Short-term loan: A loan repayable within 1 year is called a short-term loan. It is generally taken by businessmen to meet their working capital requirements.
• Medium-term loan: A loan repayable within 2 years to 5 years period is called a medium-term loan.
• Long-term loan: A loan repayable after 5 years is called a long-term loan. It is taken by businessmen for the growth and development of the business.