Overview
What is a Term Loan?
Where the borrower is provided a lump sum of cash upfront by the lender on agreeing to certain terms and conditions over a specified term is called a term loan. The term loan is to be paid within the fixed tenure and the interests are to be repaid periodically at fixed or floating rates of interest. Interest is charged on the full amount of loan.
If you are a businessman and want to purchase a PPE or expand your existing assets then term loan is what you need. Fourbridges can help you to connect lenders of your choice and assist you in the process with their expertise. Borrowers need to prove their credit worthiness to the lenders. To reduce risk of default, banks may require a collateral to secure the loan in long term plans and down-payments too
Types Of Term Loan
Short Term - Term Loan
Working capital requirements and day-to-day expenses of businesses may be met by availing this category of loans. The tenure is usually 0-1 year. Short term loan also includes loan from a Commercial Bank, trade credit, Discounting of Bills of Exchange, factoring and more.
Long Term - Term Loan
For a Long Term-Term Loan, the tenure is more than 1 year. Long term loans are usually secured against an asset; therefore, they are available at lower rates of interest. The EMI is usually low as the repayment tenure is spread over a longer tenure. The tenure of loan is based on credit score, credit history, income, age of the borrower.
Features of Term Loan
Interest Rates & Interests
Interest rates can be fixed or floating. Interest paid on term loans is tax deductible.
Fixed repayment schedule
The tenure is usually fixed and the borrower has the option to make part or full pre-payment.
Tenure
The term loan can be short term and long term.
Collateral
The asset purchased using the loan amount usually serves as the primary collateral. Long term loans are usually charged with a security which happens to be the fixed assets of the borrower.
Why Fourbridges?
Fast & Easy Process
Lowest Interest Rate
Minimum Documentation
Specialist Team Support
Nationwide Digital Presence
Both Offline & Online Process Advantage
Eligibility Criteria
Term Loan Eligibility Criteria
Age
The minimum age is 21 years.
Business Vintage
Minimum operational history should be at least three years.
Income
The income from the business operations should be enough to support the EMI of your loan. The minimum limit is at the discretion of the lenders.
Turn Over
Minimum turnover is 25 lakhs.
How to apply for a Term Loan
Check Your Eligibility
Click On Apply Now
Fill In Personal And Financial Details
Submit Application
Testimonials
FAQ's
Frequently Asked Questions(FAQ's)
Yes
For long term term-loans assets are charged as a security.
Financials of last 3 years, 26 AS FOR LAST 3 YEARS, GSTR 3B of last 12 month, KYC, bank statements of one year, the property papers such as (deed, chain deed mutation papers, conversion certificate, tax receipt, sanction plan and any other related documents) etc., documents of the previous loans etc.
The interest paid on term loans are tax deductible
Timely repayment of interest and principal impacts credit score positively.
You can apply online through our website.
You can also email us at info@fourbridgesloans.com or contact/whatsapp us at 9147300131.
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