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What are term loans? What are the features of term loans?
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Answer Posted / Bhargov Nandan Pandey
Term Loans are medium to long-term loans provided by financial institutions, usually for a fixed period ranging from one to ten years. The main features of Term Loans include: 1. Fixed Interest Rates: Term Loans often have fixed interest rates, providing predictable monthly payments for the borrower. 2. Collateral: Term Loans typically require collateral as security against default. 3. Regular Payments: Borrowers make regular equal installment payments over the loan term.
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