Short paragraph fit for a moral tale (7)
I believe the answer is:
parable
'a moral tale' is the definition.
(tale with a moral or lesson)
'short paragraph fit' is the wordplay.
'short' means to remove the last letter.
'paragraph' becomes 'para' (short for paragraph).
'fit' becomes 'able' (similar in meaning).
'para' with its last letter removed is 'par'.
'par'+'able'='PARABLE'
'for' is the link.
(Other definitions for parable that I've seen before include "Gospel story" , "Short moral story" , "Instructive story" , "Story illustrating moral lesson" , "Biblical allegory" .)