Question
Short Term Credit and Long Term Credit.

Answer

Short Term CreditLong Term Credit
(i) It refers to a loan not exceeding 2 years.(i) It is taken for a period of more than 5 years.
(ii) It is taken to fulfill short-term requirements like the purchase of fertilizers, buying of HYV seeds, for meeting expenses of religious or social ceremonies, etc.(ii) It is generally taken to buy tractors, making permanent improvements on the land, etc.

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