Term Loan :-

Fixed Repayment Schedule:
Term loans have a predetermined repayment schedule, with payments usually made monthly or quarterly over the loan term.
 

Specified Term Length:
The term length can vary from a few years to several decades, depending on the loan's purpose and the agreement between the borrower and the lender. Short-term loans typically last up to a year, medium-term loans range from one to five years, and long-term loans can extend beyond five years.
 

Interest Rate:
The interest rate on a term loan can be fixed or variable. A fixed rate remains the same throughout the loan term, providing predictability in payments, while a variable rate can fluctuate based on market conditions.
 

Purpose-Specific Financing:
Term loans are often used for significant, one-time investments like purchasing machinery, property, or making other substantial business expenditures. They provide the borrower with a lump sum of money upfront, which is then repaid over time.
 

Secured or Unsecured:
Term loans can be secured or unsecured. Secured term loans require collateral, such as property or equipment, which reduces the lender's risk and often results in lower interest rates. Unsecured term loans do not require collateral but may have higher interest rates due to the increased risk to the lender.