What is a Term Loan?

A term loan, is something you get approved for from a bank or financial institute. Usually it requires you pay back money over a set period of time, maybe 5 or 10 years and have interest rates applied as well. A term loan is a monetary loan from a bank or other financial institution that is paid back over a specified period of time. The amount of the money borrowed plus the interest due is divided into payments which must be paid monthly until the obligation is met.