Every business has numerous financial needs. Be it for starting a company, expanding a company, purchasing machinery, or any other needs, money is the primary requirement. Though there are a number of different loans available in the market, a term loan is the most straightforward, easy, and simple type of financial support.
As the name suggests, a term loan definition refers to a loan that is obtained for a fixed term. This can be for a short term, medium term, or even a long term as per the various business needs of the company. They may be for equipment, real estate, or even working capital. Term loan for business has fixed EMIs, a fixed amount and a fixed term. Usually, the rate of interest is also fixed. However, in certain cases, you may be able to obtain a floating interest rate as well.
Here are some of the features of a term loan –
There are generally 3 types of term loans depending on the duration of the loan. They are –
Being the simplest types of loans, these usually come with limited eligibility criteria. However, based on the term and the lending financial institution or bank, there may be additional eligibility requirements. The basic requirements are mentioned below –
Normally there are 2 ways in which the term loan interest rates are availed –
Term loans work in a similar way to other loan types. Be it a term loan for machinery, term loan for working capital, or any other, the process is similar. When you avail a term loan, you will receive the amount for a fixed tenure. Based on your credit score, amount, and other factors, your interest will be decided. You will then have to pay back the loan according to the EMIs.
The following are the documents you will require in order to apply for a term loan. However, based on the lending institution you may have to provide additional documents as well.
Terkar capital is one of the top financial institutions syndicating and arranging term loans in Pune. We provide you with the best ROI in the market. With our thorough assistance and guidance, we help you choose the right repayment structure and suggest you with the type of the loan you should go for. That’s not it! Our services ensure that you can get the term loan not just in Indian Rupees, but in other international currencies as well.
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