What is term loan?
1 answersQuestion asked ( July 28, 2009 , Shopping / Finance )
This is the first time that i’m taking a loan. I called my bank and the loan executive spoke about 13 different loan types. Term loan is of particular interest to me and i would like to know more about it
Answers to : What is term loan...
Answer
Term loan represents the loan from a bank for a stipulated amount which is generally repayable in more than one year and less than ten years with specific repayment schedule.
Firms obtain long term loan mainly by raising term loans. Term loans issued by banks and financial institutions are the primary source of long term finance for the private and public firms. Term loans are generally used to acquire fixed assets like land & building, Plant and Machinery, technical know-how and also for working capital margins.
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