Long-Term Personal Loan: All You Need to Know
What Is a Long-Term Personal Loan?
Generally, long-term loans include home loans, auto loans, etc. that have a repayment tenure of more than 5 years. Long-term personal loans essentially mean personal loans which have a loan tenure of more than 3 years. Typically, these loans can be used for any purpose but are mostly associated with high-value expenditures such as home renovation, higher education, medical emergencies, etc.
At MoneyTap India, we offer long-term online loans with flexible repayment tenures of up to 3 years.
Benefits of Long-Term Personal Loans
High Loan Amount
Long-term loans are usually approved for higher amounts, and the amount approved depends on your repayment ability, your credit score, your income, etc.
Low Rates of Interest
Since the personal loan market is highly competitive, the interest rate of a long-term loan is usually low and affordable.
Repayment and Prepayment Options
Long-term loans come with flexible repayment and prepayment options. The long loan tenure ensures that the EMIs are small and affordable. You also have the option to prepay the loan before the completion of the loan tenure. This will help you save money on the interest you would have to pay on the full loan tenure. However, ensure if your bank charges a prepayment fee to close the loan before you prepay the loan.
Quick Approval and Fast Disbursement
A long-term personal loan is best for financial emergencies. The loan approval process is quick, allowing you to get access to money when you need it the most.
Long-term personal loans are collateral-free. This means you can get the loan without providing collateral or a guarantor.
How a Long-Term Personal Loan Works
- You borrow the amount you need from your chosen lender.
- Interest and other loan conditions are applied to the loan amount.
- You agree to repay the borrowed amount along with interest on a date decided by you and the lender.
- The lender evaluates your credit profile to assess risk before approving the long-term personal loan.
- If your application meets the lender’s expectations, your loan is approved.
- You begin repaying the borrowed amount as agreed on the pre-decided date throughout the loan tenure.
What Are Long-Term Personal Loan Interest Rates?
The interest rate differs from lender to lender, but generally start from 10.99% pa. The long-term personal loan providers evaluate your creditworthiness and then decide the best interest rate for you. If you want to get the best interest rate, you should research and compare the various long-term personal loan offers and then make an informed decision.
Eligibility Criteria for Long-Term Loans
Generally, the eligibility criteria for long-term loans are as follows:
- Indian resident
- Above 23 years of age
- Salaried or self-employed professional/business owner
- Income of over ₹ 30,000
- For salaried, at least 2 years of work experience is required
- For business owner, the business should have been in existence for more than 1 year
Required Documents for Long-Term Personal Loan
- Professional Selfie
- Pan Card Number
- ID Proof
- Address Proof
How to Apply for Long-Term Loans Online?
Follow the steps below to apply for a long-term personal loan online in India:
- Compare various loan offers: While comparing various loan offers, check not only the interest rate charges, but also figure out the loan amount offered and the fees associated with applying for the long-term loan.
- Find out whether you are eligible: After shortlisting the lender, find out whether you are eligible to apply for a long-term loan with them. You can check your loan eligibility online by visiting their official website. Proceed with the application only if you are eligible for the loan.
- Fill out the application form: Enter the details asked in the online loan application form and submit the form along with the required documents.
- Get to know the loan status: Once the lender receives your application, it will be scrutinized in real-time, and the status will be communicated to you immediately.
- Get funds: After your loan approval, the final verification will be done, and the loan amount will be disbursed to you.