Terry cloth is a heavy fabric with loops pile on the both sides or just one side of them.
Those loops give the towel power of absorption.
Towels are terry cloth, but towels are not made form terry cloth. Towels are formed on the loom of certain size. After dyeing washing etc. processes the towel will be cut along the prepared line, then edges be hemmed.
Normal bath towels are almost all oblong with four ends finished in hem.
There are some round towels for beach , that edge finished with bounding.
Terry cloth just like normal cloth, a long roll usually cut into 20~50meter according to thickness of it. The standard width of terry cloth is 150cm, some are 160cm, other size width need custom-making.
Terry cloth usually used to make bathrobe or round beach towels, and hooded towels , some times use to make bath wraps for women. If we use terry cloth to make towels the towels must be bound by bounding.
Towels and terry cloth all can be processed by cutting loops off one side of them, We call what we got terry velour towle or terry velour cloth.
The side with loops cut off is smooth like a velvet or velour.