Term Loan

A term loan is a loan authorized and disbursed by a bank or NBFC for a fixed amount to be repaid over a given period of time in regular payments, such as Equated Monthly Instalments (EMIs). It can be offered at both fixed and floating rates of interest. Generally speaking, the duration of this loan is up to 5 years, although sometimes the term of this loan can be extended to up to 10 years.

This loan is often appropriate for an established small business with sound financial statements. It can be used for various business purposes, such as for business expansion, machinery or raw materials, paying-off rent and salaries, to purchase equipment, to meet working capital requirements, buying office or business space/land, manage cash flow, hiring new staff, debt consolidation, etc.

For different factors, such as the pre-determined loan value and repayment schedule, interest rates, etc., term loans are the most convenient loans for companies to use. Different things need to be considered for the organization to understand how a term loan functions. These things are the loan value, interest rate, loan tenure, the repayment schedule, and whether the loan is secured or unsecured.

The amount of the credit of a term loan is fixed. This amount depends on the form of term loan selected as well as on the borrower's eligibility. The available loans may be secured or unsecured. However, as opposed to secured loans, unsecured loans have a higher interest rate.

Advantage of Term Loan Services from Finnova Advisory

Finnova Advisory offers Term Loan assistance. We have formed alliances with numerous banks and financial institutions to provide a wide range of lender options. According to your eligibility and financial requirement, we recommend quick processing, competitive interest rates, and multiple collateral options to ensure that this is the best option for your business. We also deal with private, PSUs, co-operative banks, and NBFC’s.

Along with this, our team of specialists takes pride in offering unbiased advice to our customers regarding our services. Acting as a mediator, we are readily available to help you apply for corporate finances service from some leading banks and financial institutions.