---
title: What is a term loan?
description: "A term loan is a type of business loan where a fixed amount of money is borrowed and repaid in regular monthly installments over a set period — typically ranging from 1 to 10 years. It's commonly used for purchasing…"
url: "https://yazodo.com/help/business-loan/what-is-a-term-loan/"
updated: "2025-12-03"
category: Business Loan
tags:
  - Business Loan
  - "Loan Amounts & Interest Rates"
  - Types of Business Loans
---

# What is a term loan?

A term loan is a type of business loan where a fixed amount of money is borrowed and repaid in regular monthly installments over a set period — typically ranging from 1 to 10 years. It's commonly used for purchasing equipment, expanding operations, or investing in long-term assets.