Capex / equipment
Plant, machinery and equipment funded over the asset’s useful life, with a moratorium through installation and commissioning.
Capex that clears committee — on the right terms.
Business Term Loans — Structured to Your Cash Flow, Sanctioned Faster
A term loan funds an asset, an expansion or a project — and is won or lost on the file you put in front of a credit committee. We arrange term loans across PSU and private banks and NBFCs, build the sanction-grade CMA and DSCR model, negotiate rate, tenor and covenants, and walk it through to first drawdown. The right lender, on the right terms — not the easiest hello. Part of Finnova’s ₹4,250 Cr+ mobilised across 100+ corporate-finance mandates since 2011.
PSU · Private · NBFC DSCR & CMA-led Walked to disbursement
Finnova’s corporate-finance track record since 2011, in numbers
₹4,250 Cr+
Capital mobilised across sectors₹550 Cr
Largest single facility structured~1.5x
DSCR — a common comfort threshold8–12 wks
Typical mandate-to-disbursementSince 2011
CA / ex-banker, senior on every fileA term loan is a fixed-amount facility repaid over a set tenor on a defined schedule — for capex, expansion, a project or to refinance existing debt — usually after a moratorium during construction or ramp-up. It is a fund-based facility (it advances cash), distinct from a revolving working-capital limit. Floating-rate term loans are priced off a benchmark plus a bank spread — MCLR for most corporates, the repo-linked EBLR for MSME-classified floating loans (mandatory since 1 October 2019). See the full corporate finance & debt syndication practice.
Finnova Advisory is an advisory firm — we structure the file and negotiate the terms; the lender sanctions and disburses. Rates are indicative, dated and case-driven — never a promise.
What a term loan funds
Four jobs a term loan does
Each is structured differently — the moratorium, tenor and security follow the use, not a template.
Expansion / new unit
A new line, plant or location — sized off projected cash flows and a DSCR that holds across the tenor.
Project finance
Greenfield or brownfield projects with structured disbursement, a DSRA and escrow mechanics.
Refinance / takeover
Re-rate an expensive legacy facility and move it to a cheaper lender or a longer, better-structured tenor.
Where the right-fit lender lives
Term-loan pricing & tenor by lender category
Rate, tenor and turnaround vary sharply across lender categories. We steer the mandate to the one that fits the case — not the one with the easiest hello.
| Lender | Indicative rate | Tenor | Turnaround | Best for |
|---|---|---|---|---|
| LenderPSU bank | Rate~8.5–11% | TenorUp to ~15 yrs | Turnaround6–10 weeks | Best forLong-tenor, well-collateralised capex / project debt |
| LenderPrivate bank | Rate~9–12% | TenorUp to ~10 yrs | Turnaround3–5 weeks | Best forThe balanced default for most mid-market term loans |
| LenderNBFC | Rate~10–14% | TenorUp to ~7 yrs | Turnaround2–4 weeks | Best forSpeed and structuring flexibility on a non-standard case |
| LenderAIF / credit fund | Rate~13–18% IRR | Tenor3–6 yrs | Turnaround4–6 weeks | Best forBespoke / structured situations a bank won’t touch |
Indicative, as of June 2026 — varies by borrower profile, rating, collateral, ticket and prevailing rates; the AIF figure is a target IRR, not a posted loan rate. A better external credit rating directly cuts your spread. Compare the categories in depth: PSU bank vs private vs NBFC vs AIF.
How a term loan gets sanctioned
From mandate to first drawdown
A clear path with senior people on the file at every stage — and a sanction-grade pack that answers the committee’s questions before they’re asked.
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Case diligence
2–3 daysFinancial review, gap assessment and a credit-worthiness indication — we tell you where the file stands and what a committee will challenge.
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Lender shortlist
2 daysRight-fit banks and NBFCs matched to ticket, sector, tenor and security profile — before any mass-market outreach.
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Sanction-grade pack
7–10 daysCMA, projections, the DSCR model and credit note built to withstand a credit committee — submitted to the shortlisted lenders.
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Sanction negotiation
3–6 weeksCredit-committee interaction and term-sheet negotiation on rate, tenor, moratorium, covenants and security — we’re in the room and on the file.
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Documentation & disbursement
2–3 weeksSecurity documentation, CP compliance and first drawdown — the mandate closes when the money lands.
Why Finnova for term loans
We build the file the committee can say yes to
A broker makes an introduction; we run the mandate — the right lender, a sanction-grade pack, the terms negotiated, and follow-through to disbursement.
01
Lender-agnostic shortlist
PSU, private bank, NBFC or AIF — matched to your ticket, tenor and security, not to whoever holds your current account.
02
Sanction-grade CMA & DSCR
The projections and coverage model built to survive a credit committee — the file answers questions before they’re asked.
03
Terms negotiated, not accepted
Rate, tenor, moratorium, covenants and security pushed hard before sanction — the spread is where a strong file pays off.
04
Walked to disbursement
Documentation, CP compliance and first drawdown — we stay on the file until the money lands.
Consultation
Tell us about the requirement
One conversation tells you the right-fit lender, the indicative terms and how fast it can move from mandate to disbursement. No pitch — a straight read from people who run lender processes every week.
Thank you — your enquiry has been submitted
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FAQ
Term loans, answered
A term loan is a fixed-amount facility repaid over a set tenor on a defined schedule — typically used for capex, expansion, a new project or to refinance existing debt. Unlike a working-capital limit (which revolves to fund day-to-day operations), a term loan funds an asset or one-off need and is repaid in instalments, often after a moratorium during construction or ramp-up.
Floating-rate term loans are priced off a benchmark plus a bank spread. For larger corporates that benchmark is usually MCLR; for MSME-classified borrowers, the external benchmark (EBLR, repo-linked) has been mandatory for floating loans since 1 October 2019. Your external credit rating, security cover, tenor and lender category then move the spread. Indicative repo is 5.25% and SBI MCLR ~7.9–8.85% as of June 2026 — always a dated band, never a promise.
A debt service coverage ratio of around 1.5x is a common comfort threshold, though it varies by sector and lender. What matters as much as any single year is the average DSCR across the loan tenor — a committee wants to see the cash flows service both interest and principal in every year, with headroom. We model this before approaching lenders so the file answers the question before it’s asked.
A term loan funds a specific asset or project and is repaid over a fixed tenor; working capital (cash credit / OD) is a revolving limit that funds the operating cycle — stock and receivables — and is renewed annually. Most growing businesses need both, structured on the same banking sanction. We arrange the full stack rather than one facility in isolation.
Often, yes — under CGTMSE the guarantee-cover ceiling is now ₹10 crore (up to ₹20 crore for recognised startups), which lets a lender extend a collateral-free or partly-collateral-free facility to an eligible micro or small enterprise. CGTMSE covers the lender, not you, which is what makes the lender comfortable. We structure the case to qualify and pick a lender active on the scheme.
A fresh term loan typically runs 8–12 weeks from mandate to disbursement; a structured or syndicated project facility can take 12–20 weeks depending on complexity, consortium size and regulatory clearances. A clean, sanction-grade file — CMA, projections, security clearly mapped — is the single biggest lever on speed, and it’s where we add the most value.