Term Loans

A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases.

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What is a Term Loan?

A term loan is a type of loan that is repaid in regular installments over a specified period. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan in Chennai typically features a variable interest rate that is added to the balance to be repaid.

It is for equipment, real estate, or working capital paid off for one to 25 years. The term loan in Chennai typically features a fixed or variable interest rate, a monthly or quarterly repayment schedule, and a predetermined maturity date. The loan requires collateral and a rigorous approval process to reduce the risk of repayment.

Types of Term Loans

An intermediate-term loan runs less than three years, is paid in monthly installments from a company’s cash flow, and may have balloon payments. Repayment is tied to the useful life of the asset financed. A long-term loan runs for three to 25 years, is collateralized by a company’s assets, and requires monthly or quarterly payments from profits or cash flow. The term loan in Chennai limits other financial commitments the company may undertake, including other debts, dividends, or principals’ salaries, and requires an amount of profit to be set aside for loan repayment.

What are the Documents required for a Term Loan?

  • Audited Financial Statement of the last 3 years, along with Income Tax Return Acknowledgement
  • Provisional Balance Sheet for the current year
  • Projection of Sales, Purchase, Stock & Raw Material Consumption for the next year
  • Quotation of Machinery to be purchased
  • Installed Capacity, Licensed Capacity – existing & proposed, Envisaged Capacity Utilization
  • Project implementation schedule

What is included in this package?

  • Verification of Documents
  • Preparation of the required financial statement
  • Dealing with the Respective Bank Authorities
  • Following until the Loan is allotted

FAQ's

How quickly can I receive my short-term loan?

Short-term loans are approved within 1-2 business days. Once approved, if you are eligible you will need to sign your Promissory Note electronically through DocuSign or visit the Scholarships & Financial Aid office to sign a promissory note. After the promissory note has been signed, your loan will enter a three business day Right to Cancel period after which your loan will be disbursed to your student billing account. If the loan is for something other than optional fees on your billing account, funds will be refunded to you within 2-3 business days after the disclosure period if you have set up direct deposit properly.

Repayment periods vary from one to twelve months, depending on the loan amount requested and your financial resources available to repay the loan.

Repayment periods vary from one to twelve months, depending on the loan amount requested and your financial resources available to repay the loan.

  • An Indian citizen
  • Above 18 years of age
  • Employed, self-employed or businessman.
  • Ability to repay loan amount

A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and a fixed or floating interest rate. For example, many banks have term-loan programs that can offer small businesses the cash they need to operate from month to month. Often, a small business uses the cash from a term loan to purchase fixed assets such as equipment for its production process.

Demand loans are short term loans that are typically in that they do not have fixed dates for repayment and carry a floating interest rate which varies according to the prime lending rate. They can be “called” for repayment by the lending institution at any time. Demand loans may be unsecured or secured.

A term is a period of duration, time or occurrence, in relation to an event. To differentiate an interval or duration, common phrases are used to distinguish the observance of length are near-term or short-term, medium-term or mid-term and long-term

A loan for equipment, real estate and working capital that’s paid off like a mortgage for between one year and ten years . Term loans are your basic vanilla commercial loan. They typically carry fixed interest rates, and monthly or quarterly repayment schedules and include a set maturity date.

Banks do not allow co-borrowing between friends. It is only a family member who can be your co-applicant in your home loan application. Even between family and relatives, banks have reservations in granting loans. For instance, a married woman would find it difficult to avail of a home loan making her unmarried sibling a co-applicant. Banks generally prefer lending to spouses as co-borrowers.

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