Term Loan
A loan for working capital or project finance, repaid over a specific period with interest.
Purpose: To finance long-term investments, projects, or significant working capital needs.
Key Features:
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- Repaid in periodic installments or a lump sum.
- Classified as Short, Medium, or Long-Term.
- A grace period (max 1-2 years) may be granted where the borrower is relieved from repayments.
- For projects, the borrower must commit equity first.