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A term loan is a monetary loan that is usually repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed (a. k. a. floating) interest rate that will add additional balance to be repaid. The floating interest rate is often based on the borrower's credit rating and/or its consolidated leverage ratio and often has a base of LIBOR, SOFR or a similar benchmark rate.