Loans Repayment terms
Loans Repayment terms
For capital goods the maximum repayment terms by contract value are:
• Up to $50,000—2 years
• $50,000 to $100,000—3 years
• $100,000 to $200,000—4 years
• More than $200,000—5 to 10 years
Some products, such as aircraft, might have longer terms and lower unit value items might be assigned shorter terms. In exceptional circumstances, the maximum length of long-term loans can be extended beyond 10 years, depending on the nature of the product or project and OECD rules. The new definition as between medium- and long-term is important because it changes certain loan or guarantee conditions. Long-term is now defined as a repayment period longer than 7 years or is arbitrarily classified as long-term whenever the loan value exceeds $ 10 million, whatever the term. It is also a question of purpose; medium-term for trucks and equipment, and so forth, and long-term for heavy industrial equipment or projects.
Relative
long term loans guarantee conditions exceptional circumstances repayment terms contract value loan value repayment period capital goods maximum length medium term oecd 10 million 3 years 10 years nature of the product trucks
For capital goods the maximum repayment terms by contract value are:
• Up to $50,000—2 years
• $50,000 to $100,000—3 years
• $100,000 to $200,000—4 years
• More than $200,000—5 to 10 years
Some products, such as aircraft, might have longer terms and lower unit value items might be assigned shorter terms. In exceptional circumstances, the maximum length of long-term loans can be extended beyond 10 years, depending on the nature of the product or project and OECD rules. The new definition as between medium- and long-term is important because it changes certain loan or guarantee conditions. Long-term is now defined as a repayment period longer than 7 years or is arbitrarily classified as long-term whenever the loan value exceeds $ 10 million, whatever the term. It is also a question of purpose; medium-term for trucks and equipment, and so forth, and long-term for heavy industrial equipment or projects.
Relative
long term loans guarantee conditions exceptional circumstances repayment terms contract value loan value repayment period capital goods maximum length medium term oecd 10 million 3 years 10 years nature of the product trucks
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