2.  Term Loan

Concept

Term loans are loans offered to businesses for capital expenditure and expansion, having a specific amount for a specific tenor, generally upto 5 years. The term loan is to be repaid in regular payments, such as Equated Monthly Installments (EMIs) over a defined period of time. These loans are tailor-made to suit the various financial needs of businesses.

Features

•   Fixed loan amount
•   Fixed tenor of payments
•   May or may not require collateral
•   Fixed or Floating Interest Rate
•   Fixed Repayment Schedule
 

Advantages



•   Affordable EMIs
•   Limited Cost of Loan
•   Hassle free documentation and process
•   Lower Interest Rates
•   Minimal Documentation
•   Flexible Repayment
•   Quick Disbursal of Funds
 

Disadvantages



•   Good CIBIL score required
•   Good business stability with profitability required
•   High penal charges on default in non-repayment of Loan/EMI
 

Documents Required



•   Passport Size Photograph
•   KYC Documents
•   Business Documents and other details
•   Company Profile
•   Income Tax Returns and Audited Financial Statements of last 3 years
•   Bank Statement of last 12 months