Term loans can be sanctioned for project loan (green field or brown field) or non-project loan. Project loans are sanctioned for setting up a new unit or for expansion of existing units whereas Term Loans (Non-project) are extended for the purpose of acquisition of fixed assets. Viz., Building, Plant and Machinery etc.

The Bank provides term loan assistance in both rupee and foreign currencies for Greenfield projects as also for expansion, diversification and modernization. Interest rate on rupee term loan is fixed or floating based on BBR plus a fixed spread, as per creditworthiness of borrower, rating, risk perception, tenure of loan and other relevant factors. Interest Rate on Foreign Currency Loan is normally floating rate based on LIBOR plus a fixed spread according to creditworthiness of borrower, rating, risk perception, tenure of loan and other relevant factors.