Whether you are an individual or someone running a business, term loans help in both seamless financial planning and enhance financial stability for businesses. You can accurately calculate your monthly payments with a set repayment plan, which makes cash flow management and budgeting easier.
At FlexiLoans, we offer unsecured term loans with fast approvals, lower interest rates, and flexible repayment options. Whether you’re a small business term loan applicant or an established enterprise, our term loan meets your growth needs with ease. It is also an excellent solution for businesses seeking capital to expand, upgrade equipment, manage cash flow, or meet working capital needs.
What is a Term Loan?
A term loan is a type of business loan where you, as an applicant, borrow a certain amount of money and repay it in regular installments over a specific period. Businesses apply for term loans to get financing for expansion, buying assets, or working capital. These loans can be short-term loans (under 1 year), medium-term (1–3 years), or long-term (above 3 years).
Unlike revolving credit facilities, term loans provide a lump sum amount upfront that is paid back over time through scheduled payments. This structure offers predictability and helps businesses plan their finances effectively. The fixed nature of repayments makes MSME term loans particularly suitable for businesses with stable cash flows and specific growth objectives.
Example of Business Term Loan
Suppose you run a business that manufactures clothes and apparel. You need business financing of ₹10 lakh to buy machinery that helps you print designs. You apply for a term loan of ₹10 lakh for 2 years at an interest rate of 12%. You repay this business loan with a fixed monthly EMI over 2 years.
At FlexiLoans, we specialise in medium-term small business term loans that provide the perfect balance between immediate funding and manageable repayment periods. It gives your business room to grow and generate returns on investments before completing repayment.
Key Features ofFlexiLoans Term Loan
FlexiLoans offers customised loan solutions based on business requirements and a transparent fee structure with no hidden charges. Here are the key features of FlexiLoans term loans you must know:
- Loan Amount from ₹50,000 to ₹50 lakhs
- No collateral required (unsecured term loan)
- Flexible 12 to 36 months tenure
- Minimum Documentation
- Complete Digital & Hassle Free Application Process
Benefits of ChoosingFlexiLoans Term Loans
Here are the key benefits of term loans that make it the best option for your business needs:
100% Digital Process No Branch Visits
Our end-to-end digital online term loan application process eliminates the need for physical branch visits. Apply, upload documents, receive approval, and get disbursement, all from the comfort of your office or home.
Fast Processing Loan Disbursal Within 48 Hours
We understand that business opportunities won’t wait. This is why our 100% online application process enables quick credit assessment and faster decision-making. This ensures funds reach you when you need them most.
Pan-India Service Coverage
Our existing clients are from both metro cities and rural areas. We believe that every dream is big and help you achieve that dream by offering you access to quick financing no matter the part of India you are from.
Flexible Repayment Plans
We offer flexible repayment plans to help you maintain a stable cash flow. Choose repayment schedules that align with your business cash flows. Our customisable EMI options help you maintain healthy finances while repaying the loan.
Term LoanEligibility Criteria
We’ve designed our business loan eligibility criteria to be inclusive while ensuring responsible lending. To qualify for a FlexiLoans term loan for business, your business should meet the following requirements:
| Minimum Requirements | |
| Time in Business | 2 Years |
| Annual Revenue | ₹24 lakhs |
| Age | 21 to 65 |
| Credit Score | 700+ |
| Documents | Must have valid GST and business documents |
| Validly existing as a corporate entity | Required |
Our eligibility assessment takes into account various factors beyond traditional banking parameters, allowing more MSME term loan applicants to access formal credit. We evaluate your business holistically, considering business financials, transaction patterns, and industry potential.
How to Apply for aTerm Loan Online?
Our digital-first approach makes the term loan application process paperless and branchless. Here are the steps you can follow to get a term loan of ₹50 lakh:
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Fill in Your Business and Financial Details
In order to proceed further with the business loan application, you must provide all the essential documents we have listed above.
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Upload the Required Documents Securely
Upload all your documents quickly and safely with soft copies. Our 100% digital process eliminates the need to follow paper trails.
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Get Eligibility Confirmation and a Loan Offer
Once you upload all your documents, we assess them and provide status about approval or rejection. If you qualify, we will release a loan offer.
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Accept the Terms and Receive Funds in Your Account
After accepting the terms, you will receive the loan amount in your bank account to fund your business operations.
Why Do Businesses Prefer Term Loans?
The varying term loan benefits are the key reason why Indian businesses prefer over other loan types.
Here are all the compelling reasons that make term loans popular among businesses:
Predictable EMI Payments
Fixed repayment schedules make financial planning easier for businesses. You know exactly how much to budget for loan repayments each month.
No Dilution of Equity
Unlike equity financing, term loans for business allow you to retain complete ownership and control of your business while accessing the funds needed for growth.
Helps in Budgeting and Financial Planning
The structured repayment schedule of term loans facilitates better cash flow management and financial planning.
Ideal for One-time Investments or Purchases
Whether you’re expanding your store or purchasing inventory in bulk, unsecured term loans provide the lump sum needed for significant business investments.
Potential Tax Benefits
Interest paid on business loans without collateral can be eligible for tax deductions, potentially reducing your overall tax liability.
Opportunity to Build Business Credit
Timely repayment of your term loan helps establish and improve your business credit profile, potentially leading to better loan terms in the future.
Term Loans vs Other Financing Options
Explore the key differences between term loans vs other financing options:
| Term Loan | Working Capital Loan | Business Credit Card | Venture Capital |
| Lump sum amount for specific long-term investments | Day-to-day operational expenses | Revolving credit with higher interest rates | Involves selling equity in your business in exchange for funding |
| Longer tenures and fixed repayment schedules | Flexibility with shorter repayment periods | ||
| Larger amounts at lower interest rates | |||
| Allow you to maintain complete ownership |
| Term Loan |
| Lump sum amount for specific long-term investments |
| Longer tenures and fixed repayment schedules |
| Larger amounts at lower interest rates |
| Allow you to maintain complete ownership |
| Working Capital Loan |
| Day-to-day operational expenses |
| Flexibility with shorter repayment periods |
| Business Credit Card |
| Revolving credit with higher interest rates |
| Venture Capital |
| Involves selling equity in your business in exchange for funding |
Common Uses ofBusiness Term Loans
Here are the most common uses of business term loans:
You can use it to fund the opening of new locations, expansion of existing premises, or entry into new markets.
Invest in modern machinery, technology upgrades, or specialised tools to enhance productivity and service quality.
Purchase inventory in bulk to avail discounts, manage seasonal demands, or prepare for anticipated business growth.
Bridge temporary cash flow gaps, manage operational expenses, or handle unexpected business challenges.
Consolidate multiple high-interest debts into a single, manageable loan with potentially lower interest rates.
Invest in marketing campaigns, website development, or other business development initiatives to attract new customers and grow revenue.
Finance your business’s digital transformation journey, including website development, e-commerce integration, CRM implementation, and other technology investments.
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FAQs about Term Loan for Business
Disclaimer: Loan approval and final terms are subject to eligibility criteria and FlexiLoans’ policies. FlexiLoans term loan interest rates and charges mentioned are indicative and may vary based on individual business profiles. Terms and conditions apply.
