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Why loan period shouldn be fixed for 8 years and moratorium period be fixed for 2 years ?

April 26, 2017fixed loan moratorium period

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Why loan period shouldn be fixed for 8 years and moratorium period be fixed for 2 years ?

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Our corporation allows moratorium period from 6 months to 2 years in the case of term loans and 3 to 6 months in the case of working capital term loan. Loan period is fixed based on the Debt Service Coverage Ratio ranging from 3 to 8 years.