Overview
TERM LOAN:
A term loan is a type of funding provided by banks or other financial institutions for a specific purpose. It is typically repaid over a fixed period of time with regular instalments known as Equated Monthly Instalments (EMIs).
Features:
- Fixed term: Loan amount needs to be repaid within a defined period, typically ranging from 2 to 10 years.
- Fixed or floating interest rate: Choose between interest rates that remain constant throughout the term or fluctuate based on market conditions.
- EMI payments: Repay the loan with consistent monthly instalments, making budgeting easier.
- Secured or unsecured: Depending on the loan amount and borrower's creditworthiness, collateral may be required.
- Variety of purposes: Term loans can be used for various purposes like business expansion, equipment purchases etc.
