Term Loan generally provides quick funds to businesses for a specified repayment schedule. It is perfect for businesses to receive funds for capital expenditures, expansion, and more. A few features of term loans include minimal documentation, quick disbursal of funds, and flexible repayment terms.

Piramal Finance is your go-to solution whether you need a term loan for personal or business needs. With attractive interest rates and flexible repayment terms, we will ensure that the funds can easily fulfill all your requirements.

Features of Term Loans

Term loans are an extremely convenient financing option with the following features:

Fixed Loan Amount

Term loans come with a pre-determined loan amount. The loan amount will vary depending on your chosen term loan type. Once you meet the business loan terms, you will know the loan amount you are eligible for.

Fixed Repayment Tenure

Borrowers need to repay term loans at a fixed rate determined while applying for them. Your term loan will be classified as short, intermediate, or long-term according to the loan repayment duration.

Fixed or Floating Interest Rate

You will find term financing options with both fixed and floating interest rates. However, interest rates for a term loan from Piramal Finance start at 16.49% p.a.

May or May Not Need Collateral

Depending on eligibility, fund requirements, and preferences, borrowers can choose between secured and unsecured term loans. Term loans for business or personal purposes are usually unsecured. But home loans are usually offered against collateral because they are a secure form of credit.

Types of Term Loans

Term loans can be divided into the following types:

Short-Term Loans

Short-term loans are offered for a duration of 12 to 18 months. Short-term loans are perfect for borrowers to meet medium-sized funding requirements immediately. The amount borrowed as short-term loans can be easily repaid within the specified tenure.

Intermediate-Term Loans

Intermediate-term loans usually come with a tenure of up to 96 months. They are available in substantial ticket sizes and can be used to meet big-budget funding requirements. Businesses use intermediate-term loans to purchase machinery, increase working capital, and more.

Long-Term Loans

Long-term loans come with an extended tenure and are available at attractive interest rates. The easy EMI option for long-term loans ensures convenient repayment after fulfilling any business's lump sum funding requirement. Long-term loans are usually secured and need the borrowers to provide collateral.

Eligibility Criteria for Term Loan

We have compiled a comprehensive list of eligibility criteria for term loans here:

  • Applicants for term loans should be between the ages of 25 and 55.
  • Only entities, self-employed professionals, and self-employed non-professionals are eligible for term loans.
  • Businesses must have a minimum annual revenue of INR 40 lakhs.
  • Borrowers must have at least five years of total business experience.
  • Borrowers should have at least three years of experience in their current industry.
  • You must earn at least INR 1.5 lakhs annually.

Documents Required for term Loan

We at Piramal Finance offer the best term loans to start businesses. However, if you wish to apply for a term loan, you need to provide the following documents:

  • Income proof- bank statement of the past six months, salary slips, etc.
  • Proof of identity - PAN card, Aadhaar Card, Driving License, Voter ID card, Passport, etc.
  • Certificate of Business Incorporation
  • Proof of address- Passport, Aadhaar card, Voter's ID card, Utility bills, etc.
  • Passport-size photographs, etc

Benefits of Term Loans

The different advantages of opting for term loans are as follows:

Useful for Short-Term Financing Needs

You can apply for term loans to purchase new equipment or assets for your business. It is perfect for expanding your operations and generating higher revenue to repay the loan smoothly.

Have Low-Interest Rates

Term loans come with low-interest rates and flexible repayment terms. You will be able to easily repay the loan without it becoming a financial burden on you.

Helps with Building Business Credit

A term loan is great for building your small business credit. But you should be paying your EMIs to build good credit for your business.

When Should You Consider Applying for a Term Loan?

A term loan is perfect when you need funds for a short-term project or expense. For instance, you can use the funds from a term loan to buy new machinery or add them to your marketing budget. A term loan would be perfect for you if you own an established business with a proven financial track record.

How to apply for a Term Loan in Piramal Finance?

You can apply for a term loan at Piramal Finance through a few easy and simple steps:

Step 1:

Go to the Piramal Finance Term loan page. Read the features and eligibility criteria, and start the application process.

Step 2:

Click on Apply Now

Step 3:

Fill in the required Personal details such as Name, Contact Number, Birth Year, and Term Loan Amount.

Step 4:

Choose the employment type 'Salaried' OR 'Self-Employed'

Step 5:

Add your monthly income

Step 6:

Select the State and branch (enter the branch by city) and Submit the Term loan application form. 

Step 7:

Wait for a call from the official representative to move ahead with the processes.

After completing all the steps, like scanning, uploading the required documents, and paying the processing fees, wait until your Term loan application is approved.

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Frequently Asked Questions

Can I get a term loan for long-term financing?
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Do I need to provide collateral for term loans?
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How is interest calculated on a term loan?
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What is the tenure of short-term loans?
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What are small-ticket personal loans?
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Can I prepay a term loan?
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