Wanting to get ahead in your career by starting your own business or to expand your existing business ? Term Loan might be good option. Every business requires funds. Hence, getting a Term loan from a bank is a quick solution.
A term loan is a simply a loan that is given for a fixed duration of time and must be repaid in regular installments.
Term loan is a medium-term source financed primarily by banks and financial institutions. Such a type of loan is generally used for financing of expansion, diversification and modernization of projects.
The most important advantages of term loan are,
Cheaper source
Tax Benefit
Negotiable
Generally having a tenor up to 5 to 7 years, these loans are tailor-made to suit the various financial needs of businesses. Minimal documentation, quick disbursal of funds, and flexibility in repayment are some of the major benefits of these loans.
Term loan is primarily applied to meet cost for Land, cost for building Construction, cost for Machinery, cost for Electrification, cost for Furniture as well as cost for research & marketing cost.
