Term Loan to Customers 

Simply put, a term loan is a loan that has a set repayment schedule and is granted for a specific amount of time. These loans are typically extended for a longer period of time, which can be anywhere between one year and ten or thirty years. These loans may have fixed or fluctuating interest rates that change in accordance with market conditions. Term loans can be acquired on an individual basis in addition to being frequently used as small company loans.

Overview

Term loans may be approved for non-project loans as well as project loans (green field or brown field). While term loans (non-project) are granted for the purpose of purchasing fixed assets, project loans are sanctioned for the establishment of new units or the expansion of existing units. for instance, structures, machinery, and plants.

The Bank offers term financing support for new construction projects as well as for growth, diversification, and modernization in both rupees and other currencies. According to the borrower's creditworthiness, rating, risk tolerance, loan period, and other pertinent parameters, the interest rate on a rupee term loan is either fixed or floating based on BBR plus a predetermined spread. Interest rates for foreign currency loans typically fluctuate depending on LIBOR plus a predetermined spread determined by the borrower's creditworthiness, rating, risk tolerance, loan tenure, and other pertinent variables.