Term Loan
What is an Term Loan?
A Term Loan is a fixed-duration loan designed to help businesses meet long-term financial needs such as purchasing equipment, acquiring property, expanding operations, or funding large capital expenditures. The loan amount, interest rate, and repayment tenure are agreed upon upfront, providing predictability and structured financial planning.
Term loans are ideal for businesses looking to invest in long-term assets or growth strategies that generate returns over time. These loans can be secured or unsecured, depending on the borrower’s creditworthiness, business profile, and the lender’s policies.
Term Loans are available from banks, NBFCs, and financial institutions and are commonly used by startups, SMEs, and established enterprises alike.
Key Features :
- Long-Term Financing: Designed for fixed asset purchases, expansion, or capital investments.
- Loan Amount: Varies widely from ₹1 lakh to ₹10 crores or more, depending on business scale and financials.
- Fixed Tenure: Repayment periods typically range from 1 to 10 years based on the loan purpose.
- Repayment Structure: Regular EMIs (Equated Monthly Installments) with fixed or variable interest rates.
- Collateral-Based or Unsecured: Secured loans may require mortgage or hypothecation; unsecured loans are available for strong credit profiles.
Why Choose an Term Loan ?
- Asset Acquisition: Ideal for buying land, buildings, vehicles, or high-cost machinery.
- Planned Business Growth: Funds long-term strategies like market expansion or product line development.
- Budget-Friendly EMIs: Fixed monthly payments make it easier to forecast cash flow.
- Boost Business Stability: Spreads large capital investments over several years instead of draining current reserves.
Eligibility Criteria (General) :
- Business Type: Sole proprietorships, partnerships, LLPs, and private/public limited companies.
- Business Age: Preferably 1–3 years in continuous operation with financial history.
- Turnover & Profitability: Stable turnover and profit margins as per lender norms.
- Credit Score: A minimum of 700+ is recommended for favorable terms.
Why Take People
Loan from Wealth Finversity
Structured Long-Term Funding
Fund high-value assets and long-term goals with scheduled
repayment terms and fixed interest rates for simplified
planning and financial control.
Flexible Repayment Tenure
Choose repayment plans from 12 months to 10 years that best
match your business cycles and revenue flow, with balloon
options also available.
Higher Loan Amounts
Get access to larger capital amounts based on business
strength and growth potential, ideal for expansion,
equipment, or infrastructure needs.
Secured or Unsecured Options
Opt for collateral-backed loans with lower interest or go
unsecured based on strong credit scores and business revenue
stability.
Predictable Monthly EMIs
Repay using fixed EMIs every month for consistent outflows,
making budgeting easier and avoiding sudden financial stress
or fluctuations.
Transparent Processing
Enjoy a smooth, well-documented process with zero hidden
charges, clear terms, and no penalties for early repayment
or closure.
