What is Term Loan?
Term Loan is a secured business loan which is offered purely for business & establishment purposes.
This is a non-parameterized product unlike the Loan against Property & Unsecured business loan.
What are the End Uses of this loan?
Purpose of Term Loan:
- For business expansion & modernization
- For setting up new nursing home/hospital premises
- For capital expenditure
- To replace other high cost borrowings
- For research & development
Basic Product Features
Quantum of Finance:
The maximum loan amount permissible varies from bank to bank, subject to credit rating of the borrower & purpose of loan.
Interest Rate applicable:
Floating rate linked to the base rate & credit rating
The tenure generally varies between 3 to 7 years.
The Margin of term loan varies between 10 to 25% depending on the credit rating of the borrower & the proposal.
Hypothecation / pledge of the assets proposed to be purchased using the term loan.
Extension of charge over current assets, fixed assets, and other existing collateral if any.
Personal guarantees of proprietor/partners/promoters.
Bank Charges involved:
- Processing fees
- Stamp duty for loan agreement
- Other documentation charges
- Foreclosure charges
- Legal/Valuation/Technical charges
What are some of the Eligibility Criteria?
Satisfactory CIBIL report.
Satisfactory credit rating for the last three years
Latest Balance Sheet should be available.
Satisfactory financial performance in terms of Sales/turnover and profits.
Evaluation of various ratios like Debt-equity ratio & DSCR etc
Evaluation of the project feasibility report.
Satisfactory banking transactions.
Banks and Financial Institutions offering Term Loan
We deal with the MNC, Private Sector, Nationalized & Co-operative Banks in India. We also facilitate lending from NBFCs. We do not arrange for Private Finance.
Areas of Operation
The professional consultancy fees applicable will be communicated by a “ Letter of Mandate” which will outline the terms & conditions. The work on the proposal starts once the “Letter of Mandate” is formally accepted by the client.
Loan Documentation Requirements
Click the link below to see the list of documentation for Term Loan: