The difference between term loan and debentures :
Debentures provide more flexibility than term-loans as they offer greater variety of choices with respect to maturity, interest rate, security, repayment and other special features,
Before the issue, the company enjoys greater flexibility in designing the debenture issue whereas after the issue, the company hardly has any freedom in re-negotiating the terms of the issue. In case of term-loan the flexibility is less before taking the loan and more freedom is enjoyed in re-negotiating the terms of the loan contract after taking the loan.
In case of debenture, the firm deals with numerous investors and in case of a term loan, a firm has to deal with one or few FIs.