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Term Loans
What is a term loan's primary purpose and typical tenure?
Finance fixed asset acquisition (factories, machinery, infrastructure) repaid over 3–25 years via fixed EMI schedule.
What is the minimum DSCR benchmark for industrial term loans?
Debt Service Coverage Ratio ≥ 1.5 ensures borrower's cash flow comfortably covers interest and principal.
How does working-capital loan differ from term loan?
Working-capital funds day-to-day operations (short-term, revolving), term loan funds fixed assets (long-term, amortised).
What is a Working Capital Term Loan (WCTL)?
Term-loan structure financing permanent/quasi-permanent current-asset build-up, common in seasonal industries, 3–5 year tenure.
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