Term loans are generally provided as working capital for acquiring income producing assets (machinery, equipment, Inventory) that generate the cash flows for repayment of the loan. Term loan is a medium-term source financed primarily by banks and financial institutions. Such a type of loan is generally used for financing of expansion, diversification and modernization of projects—so this type of financing is also known as project financing. Term loans are repayable in periodic installments.
|1||Secured Loan||Competitive Rate of Interest||Obligation|
|3||Interest||Negotiable for rates and term||Interference|