Features of Term Loans Homework Help

Features of Term Loans

Maturity  The maturity period of term loans is typically longer in case of sanctions by financial institutions in the range of 6:10 years in comparison to 3-5 years of bank advances. However, they are rescheduled to enable corporate/borrowers tide over temporary financial exigencies.

Negotiated  The term loans are negotiated loans between the borrowers and the lenders. They are akin to private placement of debentures in contrast to their public offering to investors.

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