Term loans Term Loan --Debt originally scheduled for repayment in more than 1 year, but generally in less than 10 years. Credit is extended under a formal loan arrangement Usually payments that cover both interest and principal are made quarterly, semiannually, or annually The repayment schedule is geared to the borrower fa cash-flow ability and may be amortized or have a balloon payment 21-321-3 Term Loan -- Debt originally scheduled for repayment in more than 1 year, but generally in less than 10 years. Term Loans Credit is extended under a formal loan arrangement. Usually payments that cover both interest and principal are made quarterly, semiannually, or annually. The repayment schedule is geared to the borrower 抯 cash-flow ability and may be amortized or have a balloon payment