A term loan is a debt facility offered by financial institutions, such as banks or non-banking financial companies (NBFCs), where the borrower agrees to repay the borrowed amount in regular payments over a fixed tenure. The loan amount, interest rate, repayment schedule, and loan tenure are clearly defined at the time of agreement. Term loans can range from short-term (less than one year) to medium-term (1–5 years) and long-term (more than 5 years), depending on the borrower’s needs and the lender’s terms.