Long Term Loan

Long term loan is one of the most popular types of loans in the financial sector. The amount taken is often huge and is paid back to the lender or financial institution over a period of 3-30 years. Lenders may or may not necessitate the need for collateral. Some common examples of long-term loans are education loan, new business loan, home loan, vehicle loan, personal loan, etc. Since the term of paying back long-term loans is more, the interest imposed is relatively lower than the short-term loans. 

How to Repay Long-Term Loan?

Normally, repayment of long-term loans is done through EMIs or Equated Monthly Instalments over a certain period of time agreed by the lender and the borrower. The principal amount and the interest are the two main elements of an instalment. Standing instructions to the bank can be given to deduct the amount of the decided EMI from the savings account of the borrower every month. Post-dated cheques can also be given to the lender for the decided EMI. Most financial institutions offer the option of pre-payment, so if the borrower desires, they can repay the entire loan amount before the specified time period does not have to bear the burden of the loan for long. They are also given rebates for pre-paying the loan. 

What is the Period of Long Term Loan?

There are many factors that affect the long term loan period including the amount of loan taken, individual ability to pay back, rules of financial institution or legal rules if any that apply to long term loan, etc. Generally, the time period for paying back long term loans are between 3 and 30 years.

Examples of a Long Term Loan

Some common examples of long term loan are as follows:

Education Loan – Education loan is taken for higher studies and courses that are expensive, including medical, MBA, engineering, or others. Students willing to pursue their studies abroad also take long term loans. The loan tenure is between 6 to 60 months and it covers tuition fees and other expenses that may be incurred when pursuing the course. After graduating, when the students are employed, they begin repaying their student loan EMIs

Vehicle Loan – Vehicle loans are generally for purchasing cars or other heavier vehicles like buses, trucks, etc. (for commercial purposes). Car loans are the most common type of long term loans and generally have a tenure of 3 to 7 years. Since there are many lenders and the borrowers have a choice to take a loan from anyone, the interest rate can be negotiated with the preferred lending financial institution depending on your income. Pre-closure of loan is also available; there may be some charges that the borrower may have to incur. 

Home Loan – These are one of the longest long term loans available, the tenure for which varies between 30 years. The credit history of the borrower is checked along with their income source to ensure the stability of payback. Providing collateral is a must when taking this type of loan because it is a secured loan. Borrowers have the option to select between floating and fixed interest. Tax redemption is applicable for those paying back a home loan.

Personal Loans – Long term personal loan is an unsecured loan that has a duration of at least 3 or more years. The rate of interest is higher because the financial institution doesn’t mandate a collateral. Personal loans require less paperwork and are great for meeting emergency financial obligations.

Where to Get Long Term Personal Loan?

You must select a reliable bank or financial institution for a long term loan. This is why Finnable is the best choice for taking a long term personal loan. Finnable has been created by ex-bankers who offer financial help to all salaried individuals without any hassles. 

Why Finnable is the best Long Term Loan App?

There are several long term loan apps available for download on Play Store and Apple Store. However, not all of them are reliable, as they rob individuals of their personal identity and use the data for fraudulent crimes. A dependable loan app, such as Finnable, keeps your privacy safe and extends you the financial help needed with minimum requirements. Here is why you should apply for a small loan on Finnable:

Hassle-Free Process – At Finnable, the loan processing is done digitally, so individuals are spared of unnecessary time taking hassles such as physical documentation. You just need to furnish your personal details, employment details, and your KYC details on our app or website, and you will receive your loan in no time.  

High Loan Sanction Amount – If your documentation is in place, we can disburse a loan of up to 10 lakhs. The sanctioned amount can be paid back to us over a duration of 5 years (Both amount and duration are subject to the approval of the loan amount).

Personal Loan Assistant – Finnable believes in disbursing loans – quickly and easily. Therefore, we have a dedicated support team that works ceaselessly to resolve all your concerns related to the loan. You can write to us with any concerns about the loan, and we will get back to you with a reply.