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Term Loan: How it works? Check interest rate, features and eligibility

The article from Moneycontrol discusses the features, eligibility, and workings of term loans in India. Term loans are fixed-amount loans provided by financial institutions for a specific period, typically used for business expansion, purchasing assets, or personal needs like education or home renovation. These loans come with a fixed or floating interest rate, where fixed rates remain constant throughout the loan term, and floating rates can fluctuate with market conditions. Interest rates for term loans vary based on factors like the borrower's creditworthiness, the loan amount, and the lender's policies, with rates starting from around 8-10% per annum. Eligibility for term loans includes criteria like credit score, income stability, debt-to-income ratio, and the purpose of the loan. The article also outlines the application process, repayment options, and the importance of understanding the terms and conditions before committing to a loan, emphasizing the need for borrowers to compare offers from different lenders to secure the best deal.

Read the Full Moneycontrol Article at:
[ https://www.moneycontrol.com/news/business/personal-finance/term-loan-how-it-works-check-interest-rate-features-and-eligibility-12971538.html ]