Business loans available from commercial banks with terms generally 5-12 years and secured or unsecured are called which of the following?
A) collateral loans
B) mortgage loans
C) term loans
D) line of credit loans

Question

Quizplus · Accepted Answer

Term loans are a type of business loan typically provided by commercial banks with longer repayment periods ranging from 5-12 years. They can be secured or unsecured, depending on the borrower's creditworthiness and collateral. Collateral loans are a form of secured loans where the borrower pledges assets as collateral to secure the loan, whereas mortgage loans are specific types of loans secured by real estate. Line of credit loans are a form of revolving credit that provides borrowers with the flexibility to draw money as needed up to a certain credit limit. Therefore, term loans are the best choice as they match the given description.

Business Loans Available from Commercial Banks with Terms Generally 5-12