There are thee types of loans according to duration of period : such as
• Short term:These types of loans are provided only for maximum one year. Example: Overdraft, cash credit, called up loan.
• Mid term credit: Credit term is from one to five years. In this type of loan the duration is form one to five years.
• Long term loan: From five years to more years these types of loans are sanctioned. Example: to purchase large assets both fixed and non-fixed assets to set up factory.