Term Loan

Term loan is a monetary loan given to individuals or businesses

which is repaid in installments, at equal duration, over a set
period of time. A fixed interest rate is charged over the remaining
balance of the loan and is generally compounded annually.
Term Loans are generally granted to finance capital expenditure,
i.e. for acquisition of land, building and plant and machinery,
required for setting up a new industrial undertaking or
expansion/diversification of an existing one and also for
acquisition of movable fixed assets. Term Loans are also given for
modernization, renovation, etc. to improve the product quality or
increase the productivity and profitability.