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What is the difference between Loan and Advance?

Answer Posted / k. sailendranath

LOAN OR ADVANCE- BOTH ARE TREATED AS A CREDIT FACILITY. BUT IF THE CREDIT FACILITY IS REPAYABLE IN A SHORT PERIOD SAY WITHIN ONE YEAR IT IS TREATED AS "ADVANCE" AND IF THE CREDIT FACILITY IS REPAYABLE MORE THAN A YEAR IT IS TERMED AS "LOAN"

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