4 Long term loans for all credit typesWhen the financial need is large that’s when long-term loans are required. Long-term loans are considered to be ideal to procure a large loan amount whether to buy a property, expensive wedding, manage expenses for foreign education or pay for a major surgery. A long-term loan is usually measured with a repayment tenure longer than 3 years.
Long-term loans may vary from lender to lender ranging from 5 - 20 years of tenure. A long-term loan may be an ideal option if you plan to borrow a large sum of money and want to keep your monthly EMIs low.
Several financial institutions and NBFCs offer different types of long-terms loans for all credit types. These are highly secured loans only approved against collateral or security. A collateral is a must with long-term loans for the security of the lender, to avoid fraudulent cases who wouldn’t repay and abscond.
Below listed are the 4 long-term loans available for all credit types:
- Home loan - This is an apt example of long-term loans. It is a kind of long-term loan that extends for 10 - 15 years of tenure and in some cases even up to 30 years. Home loan has both a floating and fixed interest rate form. Generally, the interest rate on a home loans is low and the borrowers are easily able to pay off the EMIs on longer tenures and the chances of defaults are reduced. The long repayment tenure is because of the high loan amount in a home loan.
- Vehicle loans - This kind of loan is mainly taken for purchasing a car or a two-wheeler. Vehicle loans have seen huge demand in recent years. The number of borrowers has increased considerably in the last decade, due to the improvement in the standard of living of individuals. Vehicle loans are also considered as a secured loan against the car or a two-wheeler you intend to purchase, which means the vehicle serves as a collateral for the loan. Vehicle loan tenure can extend up to 1 - 5 years, depending on the type of vehicle you buy i.e., old or new. But most credit companies offer a vehicle loan for a maximum period of 7 years.
- Education Loans - These loans are provided to students. The loan covers educational expenses that might include, tuition fees, hostel fees, exam fees, library fees, purchase of books, travel and other miscellaneous expenses. An education loans can also be secured loan if the loan amount taken is higher and taken for a longer tenure. For engineering and medical students as the tenure of such courses are long, the loan tends to be of a longer tenure. Normally, the loan tenure applicable is 5 - 7 years, but with the number of flexible repayment options, the borrower can opt for longer tenure that can go up to 10 - 15 years.
- Gold Loan - When the financial need is alarming and the purpose is unavoidable, what comes to the rescue is our investments made in gold. It can be in the form of a gold jewelry, gold biscuits, gold bars etc. Borrowers can get an immediate cash loans against the mortgaged gold. The cash given in hand is mostly equal to or less than the gold value.
Personal loans are quite accessible online through instant loan apps. However, when applying for long-term loans where a major amount is involved, it is advisable to initiate the formalities in person and gain clarity of all the repayment terms, interest and tenure.