Whether you plan to launch a new business or to increase working capital or to expand your old business, it is important to know the difference between business loan types. This will help you draw maximum benefit, with no worry.
Business Term Loan
A business term loan is a traditional loan, consisting of a fixed lump sum amount and EMI structure. Interest is charged on the entire loan amount which is paid as EMI. In this case, the EMI amount is calculated as a combination of principal amount + interest amount.
Basically a term loan,
A flexi business loan allows you to save on your EMIs by firstly, letting you withdraw what you need, and secondly, by allowing you to repay only interest as EMIs. Here, interest is charged only on the amount withdrawn.
Basically a flexi loan,
Also Read: Flexi Business Loan vs Business Term Loans: A Quick Look!
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.