🔑 Key Features of a Term Loan
| Feature | Details |
|---|---|
| Loan Type | Secured or unsecured |
| Tenure (Term) | Short-term: < 1 year Medium-term: 1–5 years Long-term: 5–20 years |
| Repayment | Monthly EMIs (Principal + Interest) |
| Interest Type | Fixed or floating |
| Collateral | Required for large or secured loans |
| Purpose | Business expansion, machinery, personal needs, home/car purchase |
Â
đź“Š Types of Term Loans
Short-Term Loan
Tenure: Up to 1 year
Use: Working capital, inventory, short-term needs
Medium-Term Loan
Tenure: 1 to 5 years
Use: Equipment purchase, renovation, business growth
Long-Term Loan
Tenure: 5 to 20 years
Use: Home loans, infrastructure, large projects
Apply Loan
🏦 Examples of Term Loans
Home Loan: Long-term secured term loan
Auto Loan: Medium-term, secured by vehicle
Business Term Loan: For SMEs to buy equipment or expand operations
Education Loan: Long-term, with a moratorium period
Personal Loan: Unsecured, for personal expenses
âś… Benefits of Term Loans
Predictable repayment schedule
Fixed or flexible interest options
Suitable for long-term investments or needs
Can improve credit score if repaid on time