Secured & Unsecured Options
CGTMSE-Backed up to ₹10 Cr
Business Term Loan, Structured Around Your Growth Plan
Independent Term Loan advisory from Inwealfoney. We help you choose secured vs unsecured, prepare your project report and CMA data, and negotiate rate, tenure and moratorium — so the loan actually fits what you're funding.
Term loan rates from
9.00% p.a.*
Loan up to
₹10 Cr+
What is a business term loan
A lump sum, repaid in fixed EMIs over a fixed tenure
A business term loan is a one-time disbursement — for capex, machinery, expansion, business acquisition, or a permanent working-capital top-up — repaid through fixed or reducing EMIs over an agreed tenure (typically 1–15 years). Unlike cash credit, it isn't revolving: once repaid, the same limit doesn't automatically become available again.
Collateral-Backed
Secured Term Loan
Backed by property, machinery, fixed deposits, or other business assets. Lower interest rates, higher loan amounts, and longer tenures — the default choice once you have collateral to offer.
Collateral-Free
Unsecured Term Loan
Sanctioned against cash flow, banking conduct, and credit score — often backed by a CGTMSE guarantee behind the scenes. Faster disbursal, no asset pledge, but a higher rate and shorter tenure.
Govt. Scheme-Backed
Mudra / CGTMSE / PMEGP / Stand-Up India
Government-backed schemes route through regular banks and NBFCs but carry subsidised guarantee cover or interest support — worth checking before you assume you need collateral.
Secured vs unsecured, decided right
We help you weigh a lower rate against pledging an asset — based on what you're actually funding.
Project report & CMA data
Bank-ready projections and cost sheets prepared for you, especially for expansion/machinery loans.
Multi-lender comparison
Your file is matched against several banks/NBFCs for the best rate, tenure, and processing terms.
EMI & moratorium negotiation
We negotiate a moratorium period where your project needs time before repayment can start.
Eligibility
Do you qualify? Secured and unsecured checks differ
What a lender checks — and how much you can borrow — changes significantly depending on whether the loan is secured or unsecured.
- ✓Business vintage: 2–3 yearsEstablished trading, manufacturing, or service business with a track record.
- ✓Collateral coverage: 60–75% LTVLoan sized against property, machinery, or FD value pledged as security.
- ✓Loan amount: ₹10 Lakh – ₹10 Cr+Higher amounts possible for larger, well-collateralised proposals.
- ✓CIBIL/CMR of promoters: 700+Business and promoter credit history are both reviewed.
- ✓2–3 years' ITR, audited financials & project reportDetailed CMA data expected for larger or expansion-linked proposals.
- ✓Business vintage: 1–3 yearsNewer businesses can qualify via NBFC/fintech routes with GST or transaction history.
- ✓Udyam Registration recommendedRequired to access CGTMSE-guaranteed bank lending without collateral.
- ✓Loan amount: up to ₹10 Cr (CGTMSE) / up to ₹50–75L (NBFC)CGTMSE-backed bank loans go higher; direct NBFC/fintech unsecured loans are typically capped lower.
- ✓CIBIL/CMR of promoters: 700+Cash flow, GST returns, and banking conduct substitute for collateral in the assessment.
- ✓Min. turnover threshold appliesVaries by lender — typically ₹10 lakh+ annual turnover with consistent banking credits.
Term Loan at a Glance
Loan range₹1 Lakh – ₹10 Cr+
Interest rate9% – 24% p.a.
Tenure1 – 15 years
Processing fee0.5% – 2.5%
MoratoriumUp to 6–12 months*
Prepayment (floating)Nil, up to ₹7.5 Cr**
*Typically for project/expansion loans, subject to lender policy. **Per RBI (Pre-payment Charges on Loans) Directions, 2025, effective for loans sanctioned/renewed on or after 1 Jan 2026 — see FAQs.
Types & security
Every business term loan is not the same
The right structure depends on what you're funding — here's how the common variants differ.
3–5 yr tenure
Working Capital Term Loan
Funds a permanent/structural gap in working capital that a revolving CC limit isn't meant to cover — repaid in fixed EMIs instead of being revolving.
5–7 yr tenure
Machinery / Equipment Loan
Finances up to 75–80% of invoice value for new or used machinery; the asset itself is hypothecated as primary security.
7–15 yr tenure
Project / Expansion Term Loan
Capex for a new unit, capacity expansion, or greenfield project — usually comes with a moratorium period through the construction/commissioning phase.
Up to 15 yr tenure
Term Loan Against Property
Business property pledged as collateral for a general-purpose term loan — typically the lowest rate and longest tenure among business term loans.
1–5 yr tenure
Unsecured Business Term Loan
CGTMSE-guaranteed via banks, or cash-flow underwritten via NBFC/fintech lenders — faster disbursal, no asset pledge, higher interest cost.
Govt. subsidy-linked
Mudra / PMEGP / Stand-Up India
Scheme-specific term loans for micro units, new manufacturing units, and first-time SC/ST or women entrepreneurs, with subsidy or guarantee support built in.
Understanding the CGTMSE Guarantee
Most "collateral-free" term loans aren't actually unguaranteed — the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) backs the lender, not you. You still owe 100% of the loan; CGTMSE simply makes the bank comfortable lending without asking you for property or a third-party guarantee. The bank applies for the cover, not you — but it's why your Udyam registration and a clean banking track record matter so much.
₹10 Cr
Max. guarantee cover for MSEs (₹20 Cr for DPIIT startups)
75–90%
Of the loan guaranteed to the lender (higher for women/NER units)
0.37%+
Annual guarantee fee, borne by borrower via lender
100%
Of the loan you still repay — the guarantee protects the bank, not you
Documentation
What you'll need to keep ready
Having these scanned and organised before you apply typically shaves days off sanction time.
KYC & Business Documents
- PAN & Aadhaar of all promoters/partners
- Business PAN & GST certificate
- Udyam/MSME registration
- Partnership deed / MOA & AOA / LLP agreement
Financial Documents
- Last 2–3 years' ITR with computation
- CA-certified / audited P&L and balance sheet
- Last 12 months' GST returns (GSTR-3B/1)
- Existing loan repayment track record
Bank Statements
- Last 12 months' current account statement(s)
- Statements from all operating banking relationships
- Existing loan/CC/OD account statements, if any
Project Report / Quotations
- Project report with cost of project & means of finance
- Machinery/equipment quotations or proforma invoices
- Sales/profitability projections for the funded period
- Government approvals/licences, where applicable
Collateral Documents (if secured)
- Property title deed & chain of documents
- Latest property valuation report
- Machinery/asset ownership proof, if pledged
- Encumbrance certificate
Existing Credit Facilities
- Sanction letters of any running loans/CC/OD
- Latest CIBIL/CIR (company & promoters)
- NOC from existing lender, if switching banks
Note: For secured term loans, a mortgage/hypothecation agreement is executed at sanction and the pledged asset must be adequately insured. For CGTMSE-backed unsecured loans, Udyam registration is generally mandatory before disbursal. We'll flag exactly what applies to your sanction.
EMI Calculator
See your EMI, moratorium impact & total cost
Unlike cash credit, a term loan has a fixed EMI. Add a moratorium if your project needs a lead time before repayment starts — interest still accrues during that period.
₹25,00,000
12.0%
5 years
0 months
₹0
Monthly EMI
Principal
Total Interest
EMI Starts After
Month 1
Repayment Tenure
0 months
Total Interest Payable
₹0
Total Amount Payable
₹0
*Indicative only. EMI computed on reducing balance over the repayment tenure (loan tenure minus moratorium). During moratorium, interest-only carrying cost is estimated and added to total interest. Actual EMI, moratorium terms, and interest treatment vary by lender and scheme.
How the Facility Actually Runs
01
Disbursement
The full sanctioned amount (or tranches, for project loans) is disbursed, often directly to a supplier for machinery/asset purchases.
02
Moratorium, if any
For project/expansion loans, a moratorium lets the business get operational before EMIs begin — interest still accrues in this period.
03
Fixed EMI repayment
A fixed EMI is debited monthly for the repayment tenure, covering both principal and interest on a reducing balance.
04
Prepayment / foreclosure
Floating-rate term loans to individuals and MSEs (up to ₹7.5 Cr) can be foreclosed without penalty under RBI's 2025 directions, effective 1 Jan 2026.
FAQs
Common business term loan questions
A term loan is a one-time lump sum repaid through fixed EMIs over a set tenure — used for capex, machinery, or expansion. Cash credit is a revolving limit tied to stock and receivables, with interest charged only on the drawn amount and no fixed EMI. Many businesses run both: a term loan for the asset, CC for day-to-day operating cycle.
Secured loans carry a lower rate, higher amount, and longer tenure, but require pledging property, machinery, or other assets. Unsecured loans skip the pledge and disburse faster, but at a meaningfully higher interest rate and typically a shorter tenure and smaller amount. The right choice depends on whether you have suitable collateral and how urgently you need funds.
CGTMSE is a government-backed guarantee trust that protects the lender if you default — it lets banks sanction collateral-free loans up to ₹10 crore for eligible MSEs, covering 75–90% of the loss to the bank. It does not reduce or waive your repayment obligation; you still repay 100% of the loan plus interest and a small annual guarantee fee passed through by the lender.
Under the RBI (Pre-payment Charges on Loans) Directions, 2025, effective for loans sanctioned or renewed on or after 1 January 2026, banks and larger NBFCs cannot charge foreclosure or prepayment penalties on floating-rate loans to individuals and MSEs, up to an aggregate sanctioned limit of ₹7.5 crore per borrower. Fixed-rate loans and loans above this threshold may still carry charges — always confirm the exact clause in your sanction letter.
A moratorium is a period after disbursement where you aren't required to pay the full EMI — typically while a new unit is under construction or machinery is being commissioned. Interest usually still accrues (and is often serviced monthly) during this window. It's common for project and expansion term loans, less so for smaller working-capital term loans.
It's harder but possible — mainly through NBFC/fintech lenders assessing GST returns and bank transaction history, or through schemes like Mudra, PMEGP, or Stand-Up India designed for newer and first-time entrepreneurs. Expect a smaller loan amount, shorter tenure, and a higher rate until a track record is built.
Expect a processing fee (roughly 0.5–2.5% of the loan amount) at sanction, a CGTMSE guarantee fee if unsecured (from ~0.37% p.a.), valuation and legal charges for secured loans, insurance on any pledged asset, and stamp duty on the loan agreement/mortgage. Ask for the full fee schedule before signing.
Let's structure the right term loan for what you're building
Share what you're funding, your collateral position, and current banking relationship — we'll prepare your project report/CMA data and compare lenders on your behalf, no cost, no obligation.
Inwealfoney · Loan advisory services. Business Term Loan amounts, margins, rates and eligibility are indicative and subject to lender policy at the time of application.