What are the repayment tenure options available?

Typically, business loans offer flexible repayment tenure options for applicants. Here are some details on the repayment tenure options:

For Secured Loans:

The repayment tenure generally ranges from 12 months to 84 months. So, there is a flexible option of 1 year to 7 years to repay a secured business loan. Secured loans require collateral like property, equipment, etc., so tenures are longer.

For Unsecured Loans:

The repayment period for unsecured business loans usually ranges between 12 months and 48 months. So, an option of 1 year to 4 years is offered to repay an unsecured loan. Since these loans involve higher risk for lenders without security, the tenures offered are comparatively shorter.

Within the above-mentioned tenure ranges, applicants can choose the specific tenure according to their projected cash flows and revenues while applying for the loan. This flexibility allows different types of businesses with varied operating cycles to repay comfortably based on estimated future income.

Longer tenures involve higher interest payouts but lower Equated Monthly Instalment (EMI) burdens, whereas shorter tenures require paying larger monthly instalments but less total interest. The applicant needs to analyse their revenue models and make tenure decisions appropriately.

The tenure is decided between the applicant and loan provider based on the loan amount, type of business, financial statements and other credit parameters. But the typical options are quite flexible.