Answer:
False
Step-by-step explanation:
A term loan is a type of credit facility that is characterized by
- a fixed repayment period, which is usually in years
- a fixed loan amount
- a repayment schedule
- a pre-determined interest rate.
A borrower can choose between a fixed or floating rate of interest for repayment of the advance. Lenders demand the loan to be repaid on or before the agreed period.
Terms loan are suitable for financing expensive purchases. The time in years allowed for repayments makes it easier for the acquisition of the expensive items.