Term Loan - Definition - Law Dictionary Home Dictionary Definition term-loan

Definition :

Term loan, means loan advanced for commercial loans, State Bank of Patiala v. Harbans Singh, (1994) 3 SCC 495.

The expression 'term loan' is well understood in banking parlance. The expression implies the grant of loan for a fixed term. It has no relevance with the purpose for which loan is granted. Where the terms for repayment is long, the loan is called 'long term loan' and where the term exceeds one year but not five to seven years, it is commonly known as 'medium term loan, Canara Bank v. P.N.R. Upadhyaya, AIR 1998 SC 3000: (1998) 6 SCC 526.