Question

what is the difference between Short term credit , Medium term credit and Long term credit in Agriculture ?


Please give Answer in 200 words ​

Answer 1

Answer:

Short term credit refers to taking loans for agriculture needs for the period of 0-1 year.

Medium term credit refers to taking loans for agriculture from the period of 1 year till the maturity of 3rd year.

Long term credit refers to taking loans for agricultural equipments from the period of 3rd to 5th year or more than that.

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Answer 2

Answer:

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Explanation:

✨Short-term credit:

It refers to loans not exceeding two years.

it required for meeting the the short-term requirements of the cultivators for example loans required for the purchase of fertilizers, high-yielding variety (HYV) seeds, for meeting expenses on religious for social ceremonies etc.

✨Medium-term credit:

These loans are for a period up-to 5 years. these are the financial requirements to make improvements on land, buying cattle or Agricultural equipments, digging up of canals etc.

✨long-term credit:

These loans are for a period of more than 5 years and are generally required to buy a tractor, making permanent improvements on land etc.