Long-term Personal Loan

Long-term personal loans are ideal for individuals facing significant financial commitments, as they allow borrowers to spread repayments over an extended period through manageable monthly instalments. This approach makes it easier to fund major expenses while maintaining financial stability. The repayment periods for long-term personal loans usually exceed 3 years.

Here are a few crucial parameters that loan providers usually require you to meet to be eligible for such loans:

• You must be between 18 and 65 years 

• You need to have a regular income source

• You must be an Indian citizen

• You must have a good credit score and a healthy financial history

Here are a few essential benefits of getting these loans:

• Longer repayment tenure reduces your EMI amount, thereby helping you easily manage your monthly expenses

• Smaller EMIs result in a low Debt-to-Income (DTI) ratio, enabling you to repay the loan easily without any defaults

• Opting for a long-term loan provides flexibility and maintains liquidity to help you manage other financial requirements

• Suitable for bigger expenses like medical emergencies, home renovation, or education, offering more financial breathing room

• Some lenders offer competitive interest rates for long-term loans, making them more affordable in the long run

It is essential to keep in mind that the longer the tenure, the higher the interest outgo. This can have an impact on the aggregate cost of your loan. Ensure to take this into account prior to applying for such a loan.

Take a look at some of the limitations that come with such personal loans:

• Long-term personal loans often lead to higher overall interest costs due to extended repayment periods

• Qualifying for these loans may be challenging for those with a low CIBIL score

• The overall cost increases with additional charges like late payment, or prepayment penalties, etc

• Taking a loan with a long tenure can negatively impact the credit utilisation ratio

• Since the loan is spread over a longer period, the total interest paid increases significantly, even if the monthly EMIs are lower

keep these basic documents handy when applying for the loan:

• Copy of permanent address proof: Anyone of the following

• Aadhaar card

• Passport

• Rental agreement, etc.

• Copy of ID proof: Any one of the following

  • PAN card

  • Aadhaar card

  • Passport

  • Voter ID, etc.

• Copy of an income proof document

• Latest bank statements

• Your salary slips

The paperwork required can vary based on the lender.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.