We are fetching your Credit Score
It'll take less than 60 seconds
A term loan is a simply a loan that is given for a fixed duration of time and must be repaid in regular instalments. These loans usually extended for a longer duration of time which may range from 1 year to 10 or 30 years. Rate of interest charged under these loans may be on a fixed or floating basis, which will vary with market fluctuations. Term loans are mostly used as small business loans but can also be taken on an individual basis as well.
The features of term loans are as follows:
Following are some of the lenders that offer Term loans in India:
Terms loans are sanctioned for project loan. The loan is used to set up a new unit or to expand the existing units. The loan amount can also be used to buy plant, machinery, building, etc. interest rate is normally floating rate based and it also depends on the creditworthiness of the borrower, credit rating, risk involves, tenure of the loan and other relevant factors.
Union Bank of India offers term loans to help you acquire capital goods or asset creation for your firm for a long term basis. You can also swap the high cost debts availed from other banks or lenders. The loan can be taken under Deferred Payment Guarantee basis. The maximum tenure is up to 84 months. The loan can also be availed in foreign currency.
Term loans are offered to fund capital expenditure for setting new units and expanding the existing units and for modernisation of the project.
Term loans are offered to business for tenure of 5 years for expanding their business, for capital expenditure and for fixed assets. Short term finance option is also available to meet the borrower’s individual needs. The repayments are matched to the borrower’s available cash flow.