What is the meaning of Term Loans?

 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.