What is a Term Loan and how is it used?

A Term Loan is a specialized financial facility designed to provide capital for business expansion, working capital, or asset purchase. For example, a Kolkata-based diagnostic center recently used a ₹50 Lakh unsecured facility to purchase new medical equipment, securing the funds in just 4 days at 11.5% interest.

What are the eligibility criteria and documents required for a Term Loan?

Eligibility requires a minimum CIBIL of 650, 2+ years of business vintage, and a minimum turnover of ₹40 Lakhs. Documents include 12 months bank statements, 2 years ITR, KYC, and business registration.

What are the interest rates and tenure for a Term Loan?

Interest rates for a Term Loan range from 10.5% to 18% annually depending on your CIBIL profile and whether collateral is provided. Tenure ranges from 12 to 180 months.

How does the application process work for a Term Loan?

The process is fully assisted. Your dedicated CreditCares advisor evaluates your profile, prepares a bank-ready file, and routes it to the specific lender most likely to approve it. Disbursal typically happens in 3 to 7 days.

Are there upfront fees for a Term Loan through CreditCares?

No. CreditCares operates on a success-fee model or is remunerated directly by the partner banks. You pay absolutely zero upfront advisory fees to have your profile evaluated and processed.

Home / Secured Loans / Term Loan

Reviewed by the CreditCares advisory desk · 13 years in business finance · Last updated 10 July 2026

Term loans that fund expansion.

Structured capex funding for factory expansion, new production lines, acquisitions and long-gestation growth — repaid from the cash flows the investment creates.

₹1–100 Cr

Ticket size

5–15 yrs

Tenure

Door-to-door

Moratorium options available

Overview

Sized to the project, not just the collateral

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Lenders appraise a term loan on projected DSCR — whether the expanded business generates enough cash to service the debt. Security is usually the project assets plus collateral cover.

We build the financial model and projections the way credit teams want them, negotiate moratorium during implementation, and structure repayment to match your cash-flow ramp.

At a glance

PurposeCapex, expansion, acquisition

Tenure5–15 years, with moratorium

SecurityProject assets + collateral

AppraisalDSCR & projected cash flows

Who is eligible?

Operating businesses with 3+ years' track record
Viable expansion project with clear cost estimates
Adequate promoter contribution (typically 20–25%)
Satisfactory credit history across the group
Collateral / project security as per lender norms

Documents you'll need

3 years' audited financials & ITR
Project report with cost & means of finance
Quotations / civil estimates for the capex
12 months' bank statements
KYC and constitution documents

Planning an expansion worth funding properly? We map your profile to the right lenders, prepare a bank-ready file and coordinate until disbursal — at no upfront cost.

Check your eligibility

Term Loan FAQs

Frequently Asked Questions

Everything you need to know about securing a Term Loan with CreditCares.

A Term Loan is a specialized financial facility designed to provide immediate capital for business expansion, working capital, or asset purchase.

Real Case Study: A Kolkata-based clinic recently used a ₹50 Lakh Term Loan through CreditCares to upgrade their equipment, securing the funds in just 4 days at 11.5% interest.

Check your Term Loan eligibility now →

To qualify for a Term Loan, lenders look for absolute stability. You need:

CIBIL Score: 650 or higher (Strict requirement for unsecured).
Vintage: Minimum 2–3 years in the current business.
Turnover: Minimum ₹40 Lakhs annual turnover.

Documents needed: 12 months bank statements, 2 years ITR with computation, GST returns, KYC, and Business Registration.

Upload your documents securely here →

Interest rates are strictly tied to your CIBIL score and financial health. We negotiate directly with 80+ lenders to secure the lowest bracket.

Facility Type	Interest Rate (p.a.)	Tenure
Unsecured Term Loan	14.5% – 18.0%	12 – 48 Months
Secured (with Property)	9.5% – 12.0%	Up to 15 Years

Get a personalized rate quote →

We do the heavy lifting so you can focus on your business.

Evaluation: A named advisory desk expert analyzes your bank statements.
File Preparation: We structure your application to highlight your strengths.
Sanction: We submit to the right lender. Approval takes 24–48 hours.
Disbursal: Funds are credited to your account within 3–7 days.

Start your application today →

Zero upfront fees. We are compensated directly by our 80+ partner banks and NBFCs upon successful disbursal, or we charge a transparent success fee only after the loan is sanctioned.

We are legally bound to act in your best interest to secure the maximum amount at the lowest possible rate.

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Tell us what you need. We'll do the running around.

Share a few details and a CreditCares expert will call you back to map your eligibility and shortlist the right lenders — at no cost.

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