What are loan terms?
Having a term loans
The loan terms are those parts of the contract at which the lender is willing to lend to the borrower. They should regulate the framework conditions under which a loan is granted. It is important to distinguish between the general terms and conditions (GTC) for the general rules and guidelines and the specific terms of the loan in the strict sense.
Conditions of having term loan
Special conditions can be defined for this customer only. The determination of the conditions is first with the lender and can then be negotiated between the lender and the borrower. Especially in the area of fees for the loan, the donors are often willing to negotiate. The conditions may not be illegal or immoral. The loan terms are part of the loan agreement and are valid by double-signature. Especially chain stores often advertise with non-binding loan terms to win customers for a degree.
Examples of term loan
A loan from a bank with a floating interest rate, the total amount of which must be paid off in a certain period of time. An example of a term loan is a loan to a small business to buy fixed assets, such as a factory, in order to operate.