Asked by Brisa Sanchez on Jul 25, 2024

verifed

Verified

What are the three distinguishing features of term loans?

Term Loans

Loans from financial institutions that are repaid over a set period of time with scheduled payments.

  • Appreciate the benchmarks used by credit institutions for loan determination.
verifed

Verified Answer

MB
Manvee BatraAug 01, 2024
Final Answer :
Term loans have three distinguishing features:Banks make them for periods of up to five years;periodic repayment is required;and agreements are designed to fit the needs of the borrower,for example,payments that are smaller at the beginning of a loan and larger at the end.