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Question
Distinguish between:
Call loans and long term loans
Solution
| 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. |
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