Term Loan
Purpose Financing on fixed assets of the business like plant & machinery, land & building of the factory/office.
Financing Ratio: Maximum 80% of the value of the fixed assets.
Nature Non-revolving & non-renewable.
Disbursement Upon request of the borrower for the payment for the fixed assets by verifying the cost/expenses.
Principal Repayment On installment basis (Ballooning/EMI/EQI) based on the life of the fixed assets & its income generating efficiency/capacity, upon completion of the moratorium period.
Interest Repayment: On quarterly basis or on installment payment date as scheduled.
Security: At least 125% coverage by the value of mortgaged collateral security and/or value of the fixed assets under hypothecation.
Tenure: Maximum 15 years based on estimated life of the fixed assets and repayment capacity.