Services for Term Loans :
Kare Financial Services is a distinguished financial enterprise situated in Bangalore, offering streamlined and convenient Term Loan solutions."
With Term Loan Services Loans up to 1,00,00,000, we say yes to Canadians when banks aren't an option. If you need money to pay bills, consolidate debt, or fix your home or car, we will help you get the money you need as soon as today.
Term Loan
A term loan is a bank loan for a defined amount with a pre-determined repayment program and a fixed or floating interest rate. It is often the preferred choice for well-established small companies with robust financial statements and the capability to make substantial down payments, thereby reducing payment amounts and the overall cost of the loan.
A term loan is typically utilized by businesses to finance machinery, real estate, or working capital over a period ranging from one to 25 years. Small businesses often utilize funds from a term loan to acquire fixed assets necessary for their operational processes, such as machinery or new buildings. Some companies rely on month-to-month borrowing to sustain their operations, prompting many banks to introduce term loan initiatives tailored specifically to assist such businesses.
Business Aspects of Term Loans
Term loans serve various business needs, including business expansion, equipment and machinery purchase, managing cash flow, meeting working capital requirements, acquiring office or business space/land, covering rent and wages, hiring new employees, debt restructuring, and more.
Loan Services for Term Loans
Term loans, primarily financed by banks and financial institutions, serve as a medium-term funding source frequently utilized for project expansion, diversification, and modernization, often termed as project financing. These loans are repaid in installments over a predefined period.
Features of Term Loans
Term loans sourced from financial institutions such as banks and credit unions typically entail the following features:
- Security : Collateral secures term loans, with the assets financed acting as primary security, while other company assets serve as collateral security.
- Obligation : Borrowers are obliged to pay interest and repay the principal on term loans, usually through installments over a period of 5 to 10 years, irrespective of the company's profitability.
- Interest : Interest rates on term loans are predetermined and agreed upon between borrowers and lenders at the time of loan disbursement.
- Maturity : With a maturity period of 5 to 10 years, term loans are repaid in installments, making them a medium-term funding option.
- Restrictive Covenants : Lenders may impose additional restrictive covenants, such as maintaining a minimum fund base, refraining from acquiring new loans, and repaying existing ones.
- Convertibility : Term loans can be converted into equity at the borrower's discretion, subject to the financial institution's terms and conditions.
Interest Rates on Term Loans
Interest rates on term loans vary among banks and are largely influenced by the customer's profile and business requirements. A high credit score (CIBIL) is crucial for obtaining low-interest term loans. Kare Financial Services, a leading loan provider in Bangalore, facilitates access to term loans with competitive interest rates from various banks, including IDFC, HDFC, Kotak, ICICI, and more.