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Long Term Loan

Long Term Loan

A loan can be either a short-term loan or a long-term loan. When the term of a loan extends for more than three years, they are termed long-term loans. The duration of long-term loans can extend upto 30 years. Long-term loans can be secured as well as unsecured. The only difference between a long-term secured and a long-term unsecured personal loan is that the latter does not require any collateral to be pledged against the borrowed funds.

Long-term personal loans are suitable for borrowers who wish to repay the loan amount over a longer duration. Given the duration of a long-term loan, the EMI amount to be paid would also be considerably lesser than short-term loans.

With Finnable, long-term personal loans of upto 10 lakhs can be availed. The funds from this type of loan can be used for travel, wedding, home renovation, or fulfilling any personal needs.

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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 LoansLong 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.

Long Term Loan features

Finnable Customers
4620 people have applied for loan in the last 24 hours
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5000 people have rated this loan as the best product
Instant Personal Loan

Get Rewards

Timely EMI payments makes you eligible for a cashback of upto Rs. 200 per month. At Finnable we are the first in the industry to reward you to pay on time and improve your credit score.

Personal Loan Assistant

Get loans quickly

Apply for a personal loan in a few clicks by submitting only a few basic documents and get the loan money transferred in your account as quickly as 2 hours. The entire process is 100% digital.

High Loan Amount

High Loan Amount

Apply for personal loans with minimum documentation and get high loan amounts of upto Rs.10 Lakhs. The loan tenure can be anywhere between 60 months.

Get rewards

Personal loan Assistant

Please write to your personal loan assistant at makeiteasy@finnable.com for any support. We aim to provide you a seamless and hassle-free experience.

Get rewards

Get Rewards

Timely EMI payments makes you eligible for a cashback of upto Rs. 200 per month. At Finnable we are the first in the industry to reward you to pay on timwe and improve your credit score.

Instant Personal Loan

Get loans quickly

Apply for a personal loan in a few clicks by submitting only a few basic documents and get the loan money transferred in your account as quickly as 2 hours. The entire process is 100% digital.

High Loan Amount

High Loan Amount

Apply for personal loans with minimum documentation and get high loan amounts of upto Rs.10 Lakhs. The loan tenure can be anywhere between 6 and 60 months.

Personal Loan Assistant

Personal loan Assistant

Please write to your personal loan assistant at makeiteasy@finnable.com for any support. We aim to provide you a seamless and hassle-free experience.
Finnable Customers
4620 people have applied for loan in the last 24 hours
5/5
Over 5000 customers have rated us 5 stars in Play store

Personal loans can be used for multiple purposes- to fulfil your desires or meet urgent financial needs. This is why we bring you a range of products to suit your needs and desires.

Learn with Finnable

Long Term Loan FAQs

You can apply for a long-term loan from Finnable’s website or personal loan app. You will register and create a profile with us. Once you register yourself, upload your personal and professional details. Choose the type of long-term loan, enter the amount and submit your application. Your account will be credited with the funds on approval of the documents.

Long-term loans work like unsecured personal loans. The duration of the loan will be longer than short-term loans.

Though Finnable does not ask for a credit score at the time of application, availing a personal loan with low cibil score mean that you will be paying higher interest on the loan amount.

The advantages of availing a long-term personal loan include easy disbursal, simple documentation, and flexible repayment tenure.

Long-term loans work better than short-term loan as the EMI to be paid is stretched over a longer period. This helps borrowers to plan their finances accordingly without forgoing much of their salary. 

Applicants can avail a maximum of Rs 10 lakhs as a long-term loan from Finnable.

Long-term loans can have a loan tenure starting from 3 years and above.

You only need to pay interest that applies to your long-term loan amount till you repay the entire amount.

No, we don’t need a guarantor to disburse long term personal loans. However, your employment details, income details, etc., should be in place for us to approve a loan.

Yes, you can prepay your long term loan. To understand how to go about it, you can get in touch with our customer care, and they will help you understand the details.