2 min read
Definition
A term loan is a lump sum lent for a defined period — the term — and repaid in scheduled instalments of principal and interest. Terms range from months to years, and the rate may be fixed or variable. It's the most familiar form of business borrowing.
In plain terms
You borrow an amount, know exactly what you'll repay and when, and clear it by the end of the term. No surprises if it's fixed-rate.
Why it matters for your company
Term loans suit a defined, one-off purpose — equipment, a project, a known gap — where you want certainty. See business loans explained and size it with the repayment calculator.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.