Term Loan
A loan with a specified repayment schedule over a set period.
Detailed Description
Term Loan
What is a term loan?
A term loan is a financial borrowing offered by banks for a specific amount to be repaid over a predetermined period.
What are the main types of term loans?
Term loans are classified into short-term loans (less than one year) and long-term loans (one to ten years or more).
What are the repayment terms for term loans?
Repayment terms are defined in the loan agreement and typically include regular payments of principal and interest.
What factors influence interest rates on term loans?
Interest rates can vary based on the borrower's creditworthiness, loan amount, and lender's policies.
What are some common uses of term loans?
Term loans are used for capital expenditures, business expansion, refinancing existing debt, and managing cash flow.