Answers:
These are secured long term loans provided by financial institutions and commercial banks to organisations or individuals to start a new project or expand and redesign existing projects. Two types of term loans are provided in India, ‘rupee term loan’ and ‘foreign currency term loan’. You can use ‘rupee term loans’ for acquiring land, building capital
assets, buying plant and machinery, etc. for a project. On the other hand, you can use ‘foreign currency loans’ for importing equipment and technological knowhow.