Term Loans

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 Term loan-

  • Term loan typically carry fixed rate of interest having either monthly or quarterly or half yearly or yearly
  • Repayment of loan is made with proper maturity date.
  • Term loan- 1) Long term loan 2) Short term loan
  • Term loan is also known as term finance, represent a source of debt finance which will be repayable more than 1 year but less than10 years. it maturity period may be for 25 years.
  • Bank term loan are the basic “Vanilla Commercial Loan”. Therefore term loan finally depend upon maturity, negotiation, formal agreement, project appraisal, security.

 

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