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Term Insuarance

A Term Loan is a fixed-term financial solution designed to meet various business and personal funding needs. Whether you need capital for business expansion, equipment purchase, working capital, or personal requirements, a term loan provides structured repayment options, making it an ideal choice for borrowers looking for stability and financial growth.

Why Choose a Term Loan?

Flexible Tenure: Choose repayment periods that suit your financial needs.
Quick Approval: Hassle-free application with minimal documentation.
Affordable Interest Rates: Competitive rates ensure manageable monthly EMIs.
Collateral & Collateral-Free Options: Secured and unsecured loans available.

Types of Term Loans

✔Short-Term Loan Ideal for working capital and short-term cash flow needs, usually up to 3 years.

✔ Medium-Term Loan Suitable for business expansion and asset acquisition, with a tenure of 3-5 years.

✔ Long-Term Loan Designed for major investments like infrastructure, with a tenure of 5-10+ years.

Eligibility Criteria

When you're ready, Cardinal Loans is ready too - 24 hours a day, 7 days a week.

For Businesses:

  • Registered business with at least 2 years of operation.
  • Minimum annual turnover as per lender’s requirement.
  • Good credit history and financial records.

For Individuals:

  • Age between 21-60 years.
  • Stable income source with proof of employment or self-employment.
  • Good credit score (typically 650+ recommended).

Frequently asked questions

A term loan is a fixed-amount loan provided for a specific period, which is repaid through monthly EMIs (Equated Monthly Installments). It can be used for business expansion, personal needs, or asset purchases, with flexible tenure and interest rates.

  • Secured Term Loan: Requires collateral like property, equipment, or financial assets. Offers lower interest rates due to reduced risk.
  • Unsecured Term Loan: No collateral is required, but interest rates are slightly higher due to increased lender risk.

Interest rates depend on factors like credit score, loan amount, tenure, business turnover, and the lender’s policies. Generally, rates range from 8% to 18% per annum for business and personal loans.

 

Yes, most lenders allow prepayment or foreclosure of the loan. However, some banks may charge a prepayment penalty, usually ranging from 0% to 4%, depending on the lender and the time of prepayment.

Missing an EMI can affect your credit score and lead to penalties or late payment charges. In case of continued non-payment, the lender may take legal action or recover the amount from the collateral (for secured loans).

 

Approval time varies by lender. Unsecured loans are generally approved within 24-72 hours, while secured loans may take 5-10 business days due to collateral verification.