Term Loans are like balloon loans - a single lump sum payment at the end of a term except that they assume no payments until a set due date.
For most lenders Term Loans are not appropriate so you should leave the default selection to NO.
If you wish to create a loan product where:
Interest accrues weekly, fortnightly or Monthly
A single installment (the loan will have 1 installment)
Then choose TERM. Otherwise please leave this in the default setting.