Distinguish between:
1. Call loans and long term loans
Answer:
Basis
|
Call loans
|
Long term loans
|
Time-period
|
They are provided for a period of 7-15 days.
|
They are provided for a period of more than 5 years.
|
Interest rate charged
|
They charge lowest interest rates.
|
They charge highest interest rates.
|
Users
|
They are mostly availed to by bill-brokers and stock brokers.
|
They are mostly availed by big private companies and PSU companies.
|
Recall of loan
|
These loans can be recalled by the banks at any time from the borrower.
|
These loans can be recalled only after giving a prior notice to the borrower.
|
