Term loan interest rates in India depends on various factors. The key features that determine you term loan interest rates are
- Your company status
- loan amount needed by you
- tenure of repayment
- Either you provide collateral or not
- Your relationship with the bank you intend to take your loan from
Depending on the bank you are taking term loan from and the term loan related factors mentioned above, the average interest rates will be PLR + weightage of risk.
Processing fees for a term loan vary from 1% to 5% of the loan amount.
If you want to pay the term loan amount before the agreed time period then there will be a pre-payment penalty applied by the bank. The pre-closure/prepayment/foreclosure charges are 1% to 4% of pre-closed amount.
The term loan amount ranges between Rs 10 lakhs to Rs 500 crores for a small term.