|
Particulars |
Term Credit |
Short Term Credit |
|
1. Definition |
A form of
finance that have a
small,
mid or long
repayment
schedule |
A form of
finance that have a short repayment schedule |
|
2. Maturity period |
1 to 5 years, in some cases it may
be
20 years |
1 or less than 1 year |
|
3. Competitive
interest rate |
competitively marginal or low rate |
competitively high rate |
|
4. Lending complexity |
Some complex to lending except short-term lending |
Easy to lending |
|
5. Profitability |
Marginal profit |
High margin of
profit |
|
6. Risk |
Marginal or high risk |
Low risk |
|
7. Loan limit |
Loan limit is more |
Small Loan limit |