Introduction to Corporate Loans for Mergers
In 2025, mergers and acquisitions (M&A) drive business growth and market consolidation. Loanpao explores financing options tailored for corporates pursuing M&A deals.
Types of Corporate Loans for Mergers
Term Loans
Loans up to ₹100 crore at 8–12% p.a. for long-term M&A funding.
Bridge Financing
Short-term loans up to ₹50 crore at 10–15% p.a. to bridge funding gaps during M&A.
Asset-Based Loans
Loans up to ₹75 crore at 9–13% p.a., secured against company assets like inventory or receivables.
Syndicated Loans
Large loans (₹100 crore+) at 7–11% p.a., funded by multiple lenders for major M&A deals.
Comparison of M&A Loan Options
Key financing options for mergers and acquisitions in 2025:
| Loan Type | Loan Amount | Interest Rate | Tenure | Key Feature |
|---|---|---|---|---|
| Term Loans | Up to ₹100 crore | 8–12% p.a. | 3–10 years | Long-term M&A funding |
| Bridge Financing | Up to ₹50 crore | 10–15% p.a. | 6 months–2 years | Short-term funding gap |
| Asset-Based Loans | Up to ₹75 crore | 9–13% p.a. | 1–5 years | Secured by assets |
| Syndicated Loans | ₹100 crore+ | 7–11% p.a. | 5–15 years | Multi-lender funding |
Note: Rates and terms vary by lender and deal structure.
Benefits of Corporate Loans for M&A
These loans offer:
- High loan amounts for large-scale acquisitions.
- Flexible tenures to align with deal timelines.
- Competitive rates for syndicated and term loans.
- Support for strategic growth and market expansion.
- Quick disbursal for bridge financing to seize opportunities.
Tips for Securing M&A Loans
Improve your approval chances:
- Strong Financials: Provide audited financials and cash flow projections.
- Clear M&A Plan: Present a detailed merger or acquisition strategy.
- Collateral: Offer assets for secured loans to lower rates.
- Lender Comparison: Use Loanpao to compare banks and NBFCs.
- Legal Due Diligence: Ensure compliance with RBI and M&A regulations.
Frequently Asked Questions
Loans designed to finance mergers and acquisitions, covering costs like purchase price or operational integration.
Asset-based loans require collateral; syndicated and term loans may not, depending on the lender.
Bridge loans can disburse within 3–7 days, depending on documentation.
Syndicated loans are typically for large M&A deals, but small firms can explore term loans.
Loanpao connects you with lenders, offers EMI calculators, and guides on M&A loan eligibility.