Answer-Which of the following is not true about Term Loans?

Term loans are secured loans. The asset that is purchased using the term loan amount, will serve as a primary security and other assets of the company might be serving as collateral security.

Question

Which of the following is not true about Term Loans?

A The loan has to be repaid within the fixed term regardless of the firm’s financial situation.

B The term loan’s maturity lies between 5 -10 years.

C Term loans are Unsecured Loans.

D The repayment of the loan is made in instalments

E All are correct

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Which of the following is not true about Term Loans?

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