Is BIG LOANS a bank or NBFC?

No. BIG LOANS is a debt advisory and loan facilitation firm. We are not an RBI-regulated lender and do not lend on our own balance sheet.

What is the minimum and maximum ticket size BIG LOANS handles?

Our focus is ₹100 crore and above. We routinely arrange transactions up to several thousand crore through syndication.

Which industries does BIG LOANS serve?

BIG LOANS is industry-agnostic across manufacturing, real estate, infrastructure, healthcare, energy, IT/ITES, hospitality, NBFC, fintech and more.

What is the typical timeline from mandate to disbursement?

Typically 6–12 weeks for working capital, 10–16 weeks for term loans, and 12–24 weeks for syndicated project finance.

How does BIG LOANS charge its fees?

A modest engagement retainer plus a success fee linked to actual disbursement, governed by a written engagement letter.

Does BIG LOANS guarantee loan sanction?

No. Sanction is the sole prerogative of the regulated lender, based on its credit policy.

Service · Term Loans

Term loans, matched to your repayment capacity.

3 to 10 year rupee term loans, ECBs and FCNR(B) facilities for capex, expansion, modernisation and refinance of higher-cost debt. From single-bank ₹100 Cr term loans to ₹500 Cr+ consortium structures.

Ticket: ₹100 – 2,000 CrTenor: 3 – 10 yearsTimeline: 10 – 16 weeks

Discuss your mandate → See the process

What is a term loan?

A term loan is a fixed-tenor loan with a defined repayment schedule, used to finance long-life assets — new plants, machinery, expansion, acquisitions, or refinance of more expensive debt. Indian corporate term loans typically run 3 to 10 years, with moratoriums up to 12–18 months for capex projects, and amortise via equated monthly/quarterly installments. Security is usually a first charge on the asset financed plus a second charge on the borrower's overall fixed and current assets. Pricing is benchmarked to MCLR, T-Bill or EBLR plus a credit-risk spread.

Section 01 — Overview

Long-tenor capital for long-tenor assets.

Term loans are the workhorse of Indian corporate banking. Unlike working capital — which funds the day-to-day operating cycle — term loans fund capital expenditure: a new plant, an expansion phase, new machinery, modernisation, capacity addition, or refinancing of existing debt at better terms.

BIG LOANS arranges term loans of ₹100 crore and above as either single-bank facilities (up to roughly ₹500 Cr depending on lender), multiple-banking (2–3 banks each taking a tranche), or consortium loans with a Common Loan Agreement governing 4–10 participating lenders.

Rupee term loans benchmarked to MCLR, T-Bill or EBLR
External Commercial Borrowings (ECB) under FEMA — automatic and approval routes
FCNR(B) term loans for businesses with natural foreign-currency receivables
Equated monthly/quarterly installments, optional moratorium for capex projects
First charge on the asset financed + second charge on fixed and current assets

Typical ticket

₹100 – 2,000 Cr

Tenor

3 – 10 years

Moratorium

Up to 18 months

Pricing

MCLR/T-Bill/EBLR +

Min DSCR

1.30 – 1.50×

Promoter equity

20 – 30%

Section 02 — Use cases

Where term loans fit.

Six business situations where a term loan is the right instrument.

Capacity expansion

Adding a new line at an existing plant, doubling installed capacity, or setting up a sister unit at a different location.

New plant / greenfield

For sub-₹250 Cr greenfield projects, a term loan is structurally simpler than full project finance.

Equipment modernisation

Replacing aged machinery, upgrading to automated lines, or sector-specific capex (PLI scheme compliance, EHS upgrades).

Debt refinancing

Replacing higher-cost debt (NBFC, mezz) with cheaper bank term loans — 100–250 bps savings is typical, plus longer tenor.

Strategic acquisitions

Acquisition of competitors, suppliers, or related businesses. Acquisition financing for transactions up to ₹500 Cr can be a clean term loan.

IPO bridge

Bridge financing in the 6–12 months before an IPO, repaid from IPO proceeds. Typically a balance-sheet term loan, sometimes with a put option.

Section 03 — At a glance

Term loan options compared.

Type	Currency	Typical tenor	Best for
Rupee Term Loan	INR	3–10 years	Domestic borrowers, no natural FX hedge
ECB (External Commercial Borrowing)	USD / EUR / JPY	3–10 years	Net importers, exporters with $ receivables
FCNR(B) Term Loan	USD / EUR / GBP / JPY	1–5 years	Short-tenor FX requirements
Refinance Term Loan	Mostly INR	5–10 years	Replacing higher-cost NBFC / mezz debt

Term loans fund long-life assets and are repaid from the cash flow those assets generate.

Section 04 — Our process

How a term loan comes together.

A typical ₹100 Cr+ term loan closes in 10 to 16 weeks. Consortium and ECB structures take longer due to multi-lender coordination and FEMA compliance respectively.

Discovery & structuring

We review your capex plan, projected cash flows and existing leverage. Propose optimal tenor, moratorium, security and lender mix.

Week 1 – 2

Financial model + IM

Bank-grade financial model with sensitivities, projected DSCR / FACR / debt-equity, Information Memorandum, security memorandum.

Week 2 – 4

Lender outreach

IM circulated to 5–8 shortlisted lenders under NDA. We manage Q&A, plant visits and credit-committee presentations.

Week 4 – 8

Term sheets & negotiation

Multiple competing term sheets negotiated in parallel on pricing, tenor, covenants and security. Sanction letter from preferred lender(s).

Week 8 – 12

Documentation & drawdown

Loan agreement, deeds of hypothecation, mortgage of immovable property, CERSAI, ROC charge filing, conditions precedent, first drawdown.

Week 12 – 16

Section 05 — Documents

Documentation checklist.

A term loan application requires deeper documentation than working capital — particularly around the project / capex being funded.

Audited financials

3 years audited financials, GST returns, tax audit, bank statements, existing facility sanction letters.

Capex documents

Detailed Project Report (DPR), TEV report if required, vendor quotations, capex schedule.

Financial model

5–10 year projected financials with sensitivities, DSCR / FACR computation, repayment schedule.

Corporate + security

MOA/AOA, board resolutions, KYC, title deeds of property to be mortgaged, valuation reports.

Section 06 — Lender universe

Who funds term loans in India.

Almost every regulated lender offers term loans, but appetite varies significantly by sector, ticket size, and tenor.

01PSU Banks (SBI, BOB, PNB, Canara, Union)

02Private Banks (HDFC, ICICI, Axis, Kotak)

03Foreign Banks (StanChart, HSBC, DBS) — typically short-tenor

04Infrastructure NBFCs (REC, PFC, IIFCL — sector-specific)

05Diversified NBFCs (Bajaj, L&T Finance, Aditya Birla)

06AIF Credit Funds (for hybrid / mezz-style structures)

Section 07 — FAQ

Term loans — FAQs.

How is a term loan different from working capital?

Working capital funds the operating cycle (current assets) and is revolving — drawn and repaid as cash flow dictates. Term loans fund long-life assets (fixed assets, capex) and amortise on a fixed schedule. Working capital is 12-month renewable; term loans are 3–10 years.

What is DSCR and what minimum is required?

Debt Service Coverage Ratio = annual cash flow available for debt service / annual debt service obligation (principal + interest). Lenders typically require minimum DSCR of 1.30 – 1.50× over the loan tenor. Below 1.20× the loan is unbankable; above 1.75× pricing improves.

How much promoter equity is required?

20 to 30% for most term loans. Lower (15%) for cash-rich businesses refinancing existing debt; higher (35–40%) for new businesses, sectors with high risk, or projects with longer gestation. Promoter equity must come in before debt drawdown.

Can I prepay a term loan?

Yes, subject to prepayment penalty per the sanction letter. Public sector banks typically allow prepayment without penalty after the first year. Private banks charge 1 – 2% on the prepaid amount if prepaid from internal accruals; some waive this penalty if prepaid via fresh debt from the same lender.

What is the typical moratorium?

For capex term loans: construction period + 6 months, typically 12 – 18 months total. During moratorium, only interest is serviced; principal repayment starts after. For refinancing or working-capital-replacement term loans, no moratorium is granted.

Can I convert an existing working capital loan to a term loan?

Yes — this is called "funding of irregularity" or "WCTL" (Working Capital Term Loan). RBI norms allow lenders to convert overdrawn working capital into a term loan with a 5–7 year tenor, typically as part of a restructuring. It's also done voluntarily to free up the working capital limit.

Often combined with…

Planning capex?

Let's structure your term loan.

Share your capex plan and 3 years of financials. We respond with structuring, indicative DSCR and lender shortlist within one working day.

Discuss your mandate → mandates@bigloans.in

Core Lending

Asset-Backed

Specialty & Markets