Long Term Credit is for a period of up to 5 years.
State with reasons whether you agree or disagree with the following statements:
Long Term Credit is for a period of up to 5 years.
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No, I do not agree with the statement.
- Long Term loans are generally taken by the farmers to buy farming equipment, tractor, additional land, to make permanent improvements on the land, or to pay old debts, etc.
- It is generally bigger in amount, hence, it is taken for a longer period of time for more than 5 years.
- A longer period makes repayment easier for the borrowers.
- Thus, it is taken for more than 5 years period.
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