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Term Loans : Invest in Your Business

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Borrow to expand your business and purchase commercial assets

Borrowing to expand your business and purchase commercial assets can be a strategic move to fuel growth and enhance operational capabilities. By securing financing, you gain the flexibility to invest in key assets such as equipment, technology, or real estate, which can improve efficiency, boost productivity, and ultimately increase profitability.

 

Term Loan: Benefits & Features

No Foreclosure charges

Zero foreclosure charges after payment of 12 EMIs.

Flexible
tenure

Personal Loan with a repayment tenure of up to 72 months.

Fixed Interest Rates

Benefit from stable & predictable interest rates that ensure consistency in your monthly payments.

No collateral required

Secure a Personal Loan without the need to pledge any collateral, simplifying the borrowing process and reducing your risk.

Interest Rates, Charges, Fees and Commission

Important update pursuant to Reserve Bank of India Circular No. RBI/2023-24/53 dated Aug 18, 2023 on ‘Fair Lending Practice – Penal Charges in Loan Accounts’ (RBI Circular)

The RBI vide its Circular No. RBI/2023-24/53 dated Aug 18, 2023 on ‘Fair Lending Practice – Penal Charges in Loan Accounts’, has advised banks that any penalty, if charged for non-compliance with material terms and conditions of the loan contract, will be treated as penal charges and not be levied in the form of penal interest. RBI has further advised that there will be no capitalisation of penal charges. However, the aforesaid will not affect the normal procedure for compounding of interest in the loan account.

Penal Charges represent charges over and above the normal interest rates/fees levied for default/breach by the Borrower in complying with the material terms of the loan contract. The intent of levying penal charges is essentially to instil a sense of financial discipline and discourage borrowers from defaulting on their obligations, as specified in loan contract/ facility agreement.

The above guidelines would apply to all credit facilities i.e. fund based and non-fund based facilities, save and except Credit Cards, External Commercial Borrowings, Trade Credits and Structured Obligations.

The above-mentioned guideliness are effective from Apr 01, 2024 and applicable for all the fresh loan facilities executed from Apr 01, 2024. In case of existing loan facilities, a switchover to the new penal charges regime will be ensured on the next review/renewal date or before Jun 30, 2024, whichever is earlier. These guidelines will operate in conjunction with other ICICI Bank policies related to pricing and customer disclosures.

Popular Personal Loan (FAQs)

What are the 3 types of Term Loan?

The 3 types of Term Loan are:

  1. Short-term loans: A loan with a tenure of up to 18 months, usually for working capital needs.
  2. Intermediate-term loan: A loan with a tenure of 1 to 3 years, usually for business expansion or equipment purchase.
  3. Long-term loan: A loan with a tenure of more than 3 years, usually for large-scale projects or capital expenditure.
What is a Term Loan and its types?

A Term Loan is a type of loan that provides a lump sum of cash to the borrower for a fixed period of time and interest rate. Term Loans are mostly used by businesses to finance their capital expenditure and expansion needs. Term Loans can be secured or unsecured, depending on whether they require collateral or not.

 
How is EMI calculated for Term Loan?

The EMI (equated monthly instalments) is the amount that the borrower has to pay every month to repay the loan. It consists of the principal and interest components. The EMI is calculated using the formula:

EMI = P x r x (1 + r) ^ n / [(1 + r) ^ n – 1]

Where,
P = principal or the loan amount r = Term Loan interest rate per month n = Loan tenure in months.

Secure Personal Loan up to ₹50 Lakhs