Types of term loans for running a business | Cred Avenue

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May 26, 2022 India, Tamil Nadu, Chennai 12th Floor, Prestige Polygon, No-471, Anna Salai, Nandanam, Chennai- 600035 3

Description

What Is Term Loan?


A term loan is a monetary loan that is repaid over a predetermined length of time in regular installments. Term loans typically last one to 10 years, however, they can run up to 30 years in some situations. A term loan normally has an unfixed (also known as floating) interest rate, which means you'll have to pay back more money. The variable interest rate is frequently determined by the borrower's credit rating and/or consolidated leverage ratio, with a LIBOR or equivalent benchmark rate as a base.




There are three types of term loans:


1.     Short Term Loan


2.     Long Term Loan


3.     Intermediate Term Loan




Benefits of Term Loan:


1.     Lower Interest Rates


2.     Greater Flexibility


3.     Increased Cash Flow


4.     Fast Approval


5.     Preserves the value of the company's stock.




Eligibility for Term Loan:


1.     Should Be An Indian Citizen


2.     Should Be Between 21-65 Years Of Age


3.     Should Have A Good Credit Score




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Our Office: 12th Floor, Prestige Polygon, No-471, Anna Salai, Nandanam, Chennai- 600035


 


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