Total term loan sanctioned
Annual interest rate
Repayment period in years
Monthly EMI
₹0
Total Interest
₹0
Total Payment
₹0
Amortization Schedule
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
|---|
About Term Loans
A term loan is a loan for a specific amount that must be repaid with regular payments over a fixed period (the term). Term loans are among the most common forms of business financing and are used for:
- Capital expenditure — machinery, vehicles, equipment
- Business expansion and new projects
- Working capital (short-term term loans)
- Infrastructure and real estate
Short-term loans are typically under 1 year. Medium-term loans are 1–5 years. Long-term loans are above 5 years.
Frequently Asked Questions
What is a term loan vs working capital loan?
A term loan is for long-term capital investment with a fixed repayment schedule. A working capital loan covers day-to-day operations and is typically short-term (up to 12 months), often a revolving credit line.
What is the typical interest rate on a business term loan?
Business term loan rates in India range from 10% to 18% p.a. depending on the lender, borrower credit profile, collateral, and loan size.