Features of Term Loans
Term loans are an extremely convenient financing option with the following features:
Fixed Loan Amount
Fixed Repayment Tenure
Fixed or Floating Interest Rate
May or May Not Need Collateral
Types of Term Loans
Term loans can be divided into the following types:
Short-Term Loans
Short-term loans are offered for a duration of 12 to 18 months. Short-term loans are perfect for borrowers to meet medium-sized funding requirements immediately. The amount borrowed as short-term loans can be easily repaid within the specified tenure.
Intermediate-Term Loans
Intermediate-term loans usually come with a tenure of up to 96 months. They are available in substantial ticket sizes and can be used to meet big-budget funding requirements. Businesses use intermediate-term loans to purchase machinery, increase working capital, and more.
Long-Term Loans
Long-term loans come with an extended tenure and are available at attractive interest rates. The easy EMI option for long-term loans ensures convenient repayment after fulfilling any business's lump sum funding requirement. Long-term loans are usually secured and need the borrowers to provide collateral.
Benefits of Term Loans
The different advantages of opting for term loans are as follows:
Useful for Short-Term Financing Needs
You can apply for term loans to purchase new equipment or assets for your business. It is perfect for expanding your operations and generating higher revenue to repay the loan smoothly.
Have Low-Interest Rates
Term loans come with low-interest rates and flexible repayment terms. You will be able to easily repay the loan without it becoming a financial burden on you.
Helps with Building Business Credit
A term loan is great for building your small business credit. But you should be paying your EMIs to build good credit for your business.
How to apply for a Term Loan in Piramal Finance?
You can apply for a term loan at Piramal Finance through a few easy and simple steps:
Step 1:
Go to the Piramal Finance Term loan page. Read the features and eligibility criteria, and start the application process.
Step 2:
Click on Apply Now
Step 3:
Fill in the required Personal details such as Name, Contact Number, Birth Year, and Term Loan Amount.
Step 4:
Choose the employment type 'Salaried' OR 'Self-Employed'
Step 5:
Add your monthly income
Step 6:
Select the State and branch (enter the branch by city) and Submit the Term loan application form.
Step 7:
Wait for a call from the official representative to move ahead with the processes.
After completing all the steps, like scanning, uploading the required documents, and paying the processing fees, wait until your Term loan application is approved.
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Frequently Asked Questions
The funds from a term loan are usually useful for short-term financing. Piramal Finance offers long-term loans with a tenure of up to 60 months.
You can apply for term loans with both secured and unsecured financing options. When you apply for a secured term loan, you will have to provide collateral. A secured term loan usually has a long repayment tenure and offers a higher amount.
You can choose term loans with either fixed or floating interest rates. If you settle for a fixed interest rate, it won't change throughout the tenure of your term loan. If you settle for a floating interest rate, it will keep fluctuating according to market conditions.
Term loans come with a maximum duration of 60 months.
Borrowers can enjoy tax deductions on the interest paid on a term loan.
Every term loan comes with a fixed repayment schedule. Borrowers should pay their EMIs according to that schedule to avoid a late penalty charge.
Short-term loans usually have a tenure of 1 year or less. A small tenure reduces the interest rate, but the EMIs are high.
Small ticket personal loans enable borrowers to secure INR 1 lakh or less. These loans are perfect for meeting the personal requirements of borrowers.
Yes, you can prepay a term loan. Prepayment will either help reduce the EMI or the loan tenure.
A term loan is approved for a fixed amount. However, Piramal Finance can provide a term loan amount of INR 10 lakhs after examining the applicant's credit score, repayment capacity, and other factors.
