|Introduction||A monetary loan that is repaid in regular payments over a set period of time.|
|Who Can Apply||Person having ;
|Loan Term||Term loans usually last between one and ten years, but may last as long as 30 years in some cases.|
|Margin||A minimum margin of 25 per cent is applicable|
|Security||Extension of hypothecation charge over the current assets and fixed assets is required as primary security. Further, the borrower whose aggregate loans with the Bank exceed Rs 5 lakh may explore the possibility of collateralizing tangible security such as immovable property and third party guarantee.
In all cases, personal guarantees of proprietors/ partners/promoters have to be furnished.