Term Loan: Term Loan is a type of loan that is typically issued by a bank or financial institution for a specific amount of money, with a fixed repayment schedule and a set term or maturity period. Unlike revolving credit facilities (like cash credit or overdraft loans), Term loans are commonly used by businesses to finance large, long-term investments such as purchasing machinery, equipment, vehicles, or real estate. They can also be used for business expansion or modernization projects. Term loans are typically secured by collateral, such as property or business assets etc. A term loan is an effective financing option for individuals and businesses seeking lump-sum funding for specific purposes, offering flexibility in repayment and stability in financial management over the agreed duration.