Term loans may be raised in issuance to a borrower in the form of bank-syndicated debt, or the institution market.
Floating interest rates will fluctuate with the market, which can be good or bad depending on what happens with the global and national economy.
Since some term loans last for 10 years or more the interest rate is an important risk consideration for both borrower and lender.
Some lending institutions offer a variety of repayment plans for a term loan.
However it may be structured so that payment gradually increase over the loan period or step up over time.