A term loan is generally repaid over a defined schedule and may suit assets or projects that generate value over several years. The structure should reflect the useful life of the investment and expected cash generation.
Broad eligibility considerations
Project cost, promoter contribution, historical and projected cash flow, existing debt, credit profile and security requirements commonly affect assessment.
Documents commonly requested
- Business and promoter KYC
- Financial statements and banking
- Project cost/quotation details
- Existing obligations and security papers where applicable
Final approval, pricing, security, scheme coverage and terms are decided by the relevant lender or institution after assessment.