What are bank loan repayment terms?
When taking out a bank loan, the lender will have to agree to comply with a fixed period of time over which the loan may be repaid. There are two types of periods or terms that commonly apply, and those are intermediate and long-term loans. Intermediate loans span approximately three years, and are repaid in monthly instalments. Long-term loans such as a home loan or mortgage are repaid over 10–20 years. The loan may also have fixed or floating interest, and may even have compound interest. Borrowers should be careful to examine and understand their bank loan repayment terms before agreeing.