Is there any penalty for pre-payment in demand loan?

Is there any penalty for pre-payment in demand loan?

In demand loan there is no such penalty for pre-payment which is normal to other loans with fixed lock-in period. In term loan, the borrower has to pay a penalty amount in case of repayment of their borrowed money before maturity term. Q: I have a confusion that is this Term loan and Demand loan the same?

What is the minimum tenure period for a demand loan?

No lesser than 7 days, demand loan tenures are more suitable for shorter durations of tenure periods. These periods are negotiable as per agreement between the borrower and the financer.

How do I pay back a demand loan?

The repayment of a demand loan can be made as per the demand of the lender but this usually varies from lender to lender and terms are clarified in advance at the time of application process.

What is a demand loan?

The demand loan is a loan agreement between the lender and the borrower, which enables the lender to demand the loan repayment at any time. For DL, collateral is a must.