The lender will expect you to have appropriate insurance to protect the assets. Loan carries both interest and principal repayment provisions in a set repayment schedule. Early repayment may entail a penalty because the lender had not planned an alternate investment for that money. The percentage interest rate normally remains constant for the term of the loan. Each payment of principal reduces the balance of principal remaining and the subsequent interest is calculated on this reducing balance.
Different lenders make different types of term loans.
A promissory note is a written promise to pay a specified sum of money to the lender either on demand or on a specified date. A charge against the title is registered with the Province. The chattel mortgage is a mortgage on specific assets other than land and buildings. A lien charge against the title is registered with the Province. The pledge is an agreement similar to the chattel mortgage, except in that possession is transferred to the lender but title remains with the borrower, e.g., your stocks and bonds held by the bank.