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What is a Term Loan? Meaning, Types, Features & Examples

calendar_today October 12, 2026 person Saumya Bansal domain indifi

A term loan is a lump sum a business borrows and repays in fixed monthly instalments (EMIs) over a set tenure, usually 1–5 years or longer. It is used for one-time needs like buying machinery or expanding. For example, ₹10 lakh at 1.5% p.m., over 24 months means an EMI of about ₹49,924.

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