We will finance your requirements to acquire fixed assets or an existing project. This is a long term loan and is generally available for acquiring or purchasing machinery, equipment, land and building. The tenure of repayment of the loan is based on the project's duration and the estimated/ existing cash flow. ?
Last Updated Date: May 16, 2022
Sunrise bank limited has provided its customers with up-to-date banking services and facilities under the motto Rising to serve. The bank was founded by renowned pioneers and its team is completely committed to creating a dedicated institution to provide all banking needs and services. The aim of this bank is to provide all kinds of individuals in every area, size of transaction and aspiration with the tailor banking service. It has approved the capital with regard to the capital structure of the bank: 5,000 million, Promoter Shares of NRs (51% of the paid-up capital), 1,140.70 million respectively. For public stock, which is 49% of the paid-up capital, 1,095.95 million. This bank is not only open for profit motive But also with the aim to be a friend who will take care of people’s financial affairs and support them. This bank is always in operation to ensure the customer's success.
Documents Required for Term loan
Term loans are basically granted for starting a new business or expansion of existing business, purchase of land/plant, machinery for setting up factory etc. It is granted for mostly 1 year to 20 years. Term loans have a specified repayment terms with fixed instalment facilities. Interest is charged on the principal amount in this case. In case of term loan, mortgage of land, plant and machinery, building may be shown as the security to avail the loan. The borrower has to pay a penalty amount in case of repayment of their borrowed money before maturity term. A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and either a fixed or floating interest rate. A term loan is often appropriate for an established small business with sound financial statements. Also, a term loan may require a substantial down payment to reduce the payment amounts and the total cost of the loan.
In corporate borrowing, a term loan is usually for equipment, real estate, or working capital paid off between one and 25 years. Often, a small business uses the cash from a term loan to purchase fixed assets, such as equipment or a new building for its production process. Some businesses borrow the cash they need to operate from month to month. Many banks have established term-loan programs specifically to help companies in this way. The term loan carries a fixed or variable interest rate based on monthly or quarterly repayment schedule, and a set maturity date. If the loan proceeds are used to finance the purchase of an asset, the useful life of that asset can impact the repayment schedule. The loan requires collateral and a rigorous approval process to reduce the risk of default or failure to make payments. However, term loans generally carry no penalties if they are paid off ahead of schedule.
Term loans come in several varieties, usually reflecting the lifespan of the loan.
A short-term loan usually offered to firms that don't qualify for a line of credit, generally runs less than a year, though it can also refer to a loan of up to 18 months or so.
An intermediate-term loan generally runs more than one—but less than three—years and is paid in monthly installments from a company’s cash flow.
A long-term loan runs for three to 25 years, uses company assets as collateral, and requires monthly or quarterly payments from profits or cash flow. The loan limits other financial commitments the company may take on, including other debts, dividends, or principals' salaries, and can require an amount of profit set aside for loan repayment.
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