Term Loan
What is a term loan?
Term loans are short-term loans provided to businesses for capital expenditure and expansion, amongst others. Generally having a tenor of as much as eighty-four months, those loans are tailored to suit the numerous financial needs of companies. Minimal documentation, quick disbursal of funds, and repayment flexibility are some of the major advantages of these loans
Features of term loans
Amount of funding required
Repayment capability of the borrower
Regular cash flow and in-hand availability
Types of term loans
Short-term loans
A short-term loan is a type of advance provided for a duration ranging from 12 to 18 months. Some lenders, however, also consider tenors of up to 5 years or 84 months as quick-term loans. Borrowers generally avail of those loans to fulfill their immediate, medium-sized funding needs that they could pay off easily within a short span
Long-term loans
A long-term loan is a type of loan that is provided for a duration ranging for a period of time greater than 3 years. This tenure period can be anywhere between 3-30 years. Car loans, Home loans, and certain personal loans are some examples of long-term loans
