ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A term loan is a simply a loan that is given for a fixed duration of time and must be repaid in regular instalments. These loans usually extended for a longer duration of time which may range from 1 year to 10 or 30 years.

Detailed explanation-2: -A loan term is defined as the length of the loan, or the length of time it takes for a loan to be paid off completely when the borrower is making regularly scheduled payments. These loans can either be short-term or long-term, and the time it takes to pay off debt from the loan can be referred to as that loan’s term.

Detailed explanation-3: -A form of loan that is paid off over an extended period of time greater than 3 years is termed as a long-term loan. This time period can be anywhere between 3-30 years. Car loans, home loans and certain personal loans are examples of long-term loans.

Detailed explanation-4: -There are three main classification found in Term Loans: short-term term loan, intermediate term loan, and long-term term loan.

Detailed explanation-5: -A 12-month loan is a short-term unsecured loan which can be paid back in a period of 1 year. Already a popular concept in the Western countries, Indians are also warming up to 12-month loans. Also known as payday loans, this is a kind of personal loan which is disbursed against your paycheck.