Service · Fixed tenure · Instalment repayment
Term loans that your cash flows can carry.
Long-term funding repaid in instalments over a fixed tenure, structured so the repayment schedule matches the cash the business actually generates.
What it covers
The common forms, and what each one is for.
TL
Asset term loan
For buying long-life assets: premises, plant, vehicles used in the business.
GTL
General-purpose term loan
For long-term business needs that don't fit a single asset, where lenders allow it.
RF
Refinance and takeover
Moving an existing loan to a lender with better terms or a structure that suits you now.
Who it suits
Is this the right facility for you?
- Businesses funding assets that will earn over several years
- Companies whose short-term limits are being used for long-term needs
- Borrowers looking to restructure or take over costly existing loans
- Firms with steady profits who want predictable instalments
How lenders look at it
What a credit officer checks first.
01
Debt service capacity
Whether cash profit comfortably covers instalments and interest, usually read through a coverage ratio.
02
Promoter contribution
How much of the cost you are bringing in yourself, and from where.
03
Track record
Years in business, profit history and how filed financials compare with banking.
04
Security
The asset being funded and any additional collateral or guarantees.
05
Existing debt
Total borrowings against the business and how they have been serviced.
06
Purpose and end use
A clear, documented use of the money that the lender can verify.
How we help
From your numbers to a facility you can use.
1
Define the need
Separate long-term needs from working capital, so each gets the right product.
2
Set tenure and moratorium
A repayment plan that matches when the asset starts earning.
3
Build the case
Projections, coverage workings and a document set a credit officer can follow.
4
Shortlist and apply
Lenders whose criteria you fit, approached in order, with queries handled.
Mistakes we see often
- Choosing the shortest tenure to save interest, then struggling with instalments
- Funding long-term assets from a working capital limit
- Applying to many lenders at once and collecting credit enquiries
Documents
What this file usually needs.
Lenders differ. We confirm the exact list for your case after the first call.
- Last 3 years' financial statements and ITRs
- Last 12 months' bank statements (all current accounts)
- GST returns for the last 12 months
- Quotations or cost estimates for what is being funded
- Sanction letters and repayment schedules of existing loans
- KYC of the business and promoters
Questions
Term Loans, answered.
How long can the tenure be?
It depends on the asset, the lender and your cash flows. We propose a tenure that the business can service comfortably, then test it against each lender's policy.
What is a moratorium?
A period at the start of the loan with no instalments, or interest only, while the asset starts earning. Lenders allow it case by case.
Can you move my existing loan to another lender?
Yes, where it makes sense. We compare the full cost of switching, including charges, before recommending a takeover.
Do I need collateral?
Often the funded asset is the main security, and some lenders ask for more. For eligible micro and small enterprises, CGTMSE cover can reduce the need for collateral.
Talk through your term loans need.
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