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Door to Door Tenor/ Maturity: Meaning in Banking & Finance

"Door to Door tenor" is a term that is mostly used in the finance sector.

What is Door to Door tenor?


It is generally used to indicate the total period within which the total debt borrowed is to be paid back by the borrower to the lender.

This total period also includes the period of moratorium. Period of moratorium means the period for which payment has been postponed. Such postponement is approved by the lender.

A.k.a


Door to Door tenor is also called 'Door to Door maturity'.


Example


A financial institution lends a long term loan of Rs. 100 crore to an organisation.

The entire debt is payable in 12 quarterly installments, but with an initial moratorium of 5 months.


Then the door-to-door tenor will be 3 years and 5 months (i.e. 12 quarters + 5 months).

Use of 'door to door tenor' term

Bankers generally use this term in term loan sanction documents and other relevant documents.


Many financial institutions also use the term in similar circumstances.







Comments

  1. P. Krishnaswamy Iyer17 July, 2018

    I finally got to know the meaning of this phrase. Thanks a lot for posting!

    ReplyDelete
  2. Johnny Hatfield18 September, 2018

    Thanks for the brief info on the phrase I was trying to find the exact meaning of it.

    ReplyDelete

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