Bank Term Loan

What is bank term loan?

A bank term loan is a type of business loan typically offered by banks, as we commonly think of them. The “term” refers to the period of time, and it’s a program where the principal and interest are divided and paid monthly over a predetermined repayment period. Most term loans have variable interest rates, so the payments can vary each year depending on the interest rate. While each bank has its own guidelines and requirements, the basic conditions are similar and typically include the following.

Bank Term Loan:

  • Loan amount: $30,000 – $500,000
  • Rates:  Prime + (1% – 6%)
  • Term:  2-7 Years
  • Processing time: 1-3 months

* What is prime rate?


The prime rate in the United States refers to the basic interest rate applied by banks when lending to the most creditworthy companies. The U.S. prime rate is mainly based on rates announced by leading U.S. banks such as Wells Fargo, Chase, and Citi. These banks typically lead the economy and hold important positions in the financial market, so the prime rates they announce influence the overall interest rate trend in the market. Therefore, the U.S. prime rate has a significant impact on both domestic and international financial markets and is used as the benchmark rate for various financial products such as mortgages and corporate loans.

Basic Qualification Criteria and Required Documents for Bank Term Loan:

  • Personal credit score of 660 or above
  • Business in operation for at least 2 years U.S.
  • permanent resident or citizen
  • No record of bankruptcy or property foreclosure in the past 7 years
  • No outstanding tax liens or judgments
  • Not currently in default or delinquent on any government loans
  • Recent 2-3 years of business and personal tax returns
  • Year-to-date (YTD) financial statements: profit & loss, balance sheet
  • Remaining loan schedule (debt schedule)
  • Recent 6 months of bank statements