Presentation on

Name Saurabh Pratap Sayoni Mondal Shaily Tiwary Kunal Sharma Shashank Saurabh Shashank Tiwary Shikha Mann

Roll No. 27 28 29 30 31 32 33 01

Shivangi Prakash

34

Date of presentation: 03.01.2012

A loan is the purchase of the present use of money with the promise to repay the amount in the future according to a pre-arranged schedule and at a specified rate of interest. A monetary loan that has to be repaid in regular payments over a set period of time is referred to as a term loan.

 Term

loans in India, are generally obtained for financing large expansion, modernisation or diversification projects. Term loans can be given on an individual basis but are often used for small business loans. The ability to repay over a long period of time is attractive for new or expanding enterprises, as the assumption is that they will increase their profit over time

Fixed rate - enjoy the peace of mind of fixed monthly repayments Variable rate - Rates can rise or fall Repayment style - choose from capital and interest, capital only or interest only Repayment frequency - pick the frequency that suits you from monthly, quarterly, half yearly and yearly

long-term.

Intermediate

term loan Short-term loans

 Long-term

loans usually mature in one to seven years, but can be longer for real estate or equipment. These loans are used for major business expenses such as vehicles, purchasing facilities, construction and furnishings. They also can be used to carry a business through a depressed cycle.

Term loans finance the purchase of furniture, fixtures, vehicles, and plant and office equipment. Maturity generally runs more than one year but less than five. Consumer loans for autos, boats, and home repairs and remodeling are also of intermediate term

Short-term loans, typically lines of credit, working capital loans, or accounts receivable loans, usually reach maturity within one year or less A short term business loan is an option for an established business that has a strong support and patronage