Long-Term Personal Loan

Know more about long-term personal loans on Bajaj Markets

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Long-term personal loans are repaid over tenures that are usually more than 3 years. These are beneficial for individuals looking to fulfil huge financial obligations and repay the loan in small easily manageable EMIs over the years.

Interest Rates and Charges

Here are the interest rates and other fees charged on long-term loans by lenders available on Bajaj Markets.

Lending Partners	Interest Rates	Processing charges
Fibe	14% p.a. onwards	Up to 2% of the loan amount
Finnable	15.95% p.a. onwards	Up to 3% of the loan amount
IIFL Finance	18% p.a. onwards	2% to 6% of the loan amount + GST
InCred	21% p.a. onwards	N/A
Kotak Mahindra	10.99% p.a. onwards	1.10% to 1.50% of the loan amount + GST
L&T Finance	11% p.a. onwards	Up to 2% of the loan amount + GST
moneyview	16% p.a. onwards	Starting from 2% of the loan amount
Muthoot Finance	14.50% p.a. onwards	2% to 4% of the loan amount
Paysense Partners	14% p.a. onwards	2% to 2.5% of the loan amount or ₹500, whichever is higher, + GST
Privo	9.99% p.a. onwards	1% to 3% of the loan amount + GST
SMFG India Credit	12% p.a. onwards	Up to 6% of the loan amount
Upwards	1.5% p.m. onwards	Up to 4% of the loan amount
YES Bank	10.99% p.a. onwards	Up to 2.5% of the loan amount

*Disclaimer: The interest rates and processing charges are subject to change at the discretion of the lender.

Eligibility Criteria and Documents Required

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

Alongside this, 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.

Advantages of Long-Term Personal Loans

Here are a few essential benefits of availing 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.

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.

Disclaimer

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.

How are long-term personal loans better than short-term loans?

As these loans have a longer repayment period, the interest charged and the EMI amount payable are usually lower compared to short-term loans.

How does the rate of interest on personal loans with long tenures compare against that for short-term loans?

When you secure a long-term personal loan, your interest rate can be lower as the repayment tenure is long. However, the interest payable is higher since you are servicing the loan for longer.

Is there an option of pre-closure for a personal loan with a long tenure?

Yes, you can foreclose your loan according to the norms set by the lender.

Can a person with a poor credit score get a long-term personal loan?

For applicants with a poor credit score, it is important to apply with a guarantor who has an excellent credit profile. This makes it easier to get approval.