Family Economics And Consumer Education 3 (2+1)

Lesson 11 :Credit

Installent payment

Installment payment refers to a practice when the money is paid through several payments. It is piecemeal liquidation of credit.
Depending on the length of time credit is termed as

1. Short term credit
2. Long term credit
3. Intermediate credit

1. Short term credit

Credit granted for a year or less, is considered to be a short term credit.

2. Intermediate credit

Credit granted for a period from one to five years is called intermediate credit.

3. Long term credit

Credit granted for more than five years is considered to be long term credit. These types of credit are related to money credit between buyer and the banks or lending institutions. It is not connected with trade credits.