How to Apply for Long-Term Loans Online?


Taking out a loan for big-ticket expenses is a smarter way to manage your finances. But, to truly benefit from the credit, it is pivotal to choose an appropriate loan. If you want to pay smaller monthly instalments, you may opt for a long-term loan.

Personal loans that you borrow over a longer term are referred to as long-term loans. You can borrow a significantly more considerable loan amount with long-term loans. These loans allow you to spread the cost of your purchase into affordable monthly instalments over a fixed period. In the case of long-term loans, this period is usually more than 5 years.

This article will help you understand the concept of long-term loans. Learn how to apply for long-term loans online. Read on to find out the pros and cons of long-term loans.

What are long-term loans?

A long-term loan is essentially a personal loan that you pay off over 5 years or more. Sometimes, these loans are also referred to as 10 year loans. The idea of long-term loans is to help you spread the cost of your venture into affordable monthly instalments over an extended period. A longer loan term effectively reduces the amount of money you pay in your monthly instalments, making repayments more financially manageable.

If you’re planning to finance a big-budget expenditure or hoping to consolidate high-interest debt, long-term loans can alleviate your financial stress. However, all your monthly repayments are inclusive of interest, implying that the lender will impose interest charges throughout the loan’s tenure. Therefore, the longer the term, the more you may end up paying as interest.

A long-term loan may turn out to be a more expensive choice overall. For instance, you’ll have to pay smaller monthly instalments on a 7 year loan than a 4 year loan. But practically, a 7 year loan may accrue you more interest than a 4 year loan.

How do long term personal loans work?

Long-term loans are paid off over a longer period, usually over 5 years, unlike a typical personal loan that you can pay off within 1-5 years. With a good credit rating, stable income and decent employment history, you may qualify for competitive rates and better terms.

However, you should contemplate how much you will be paying towards interest over a given term. Are you willing to shell out this amount? Most importantly, can you afford this amount?

It is always wiser to settle your dues as soon as you possibly can. This holds even if you’ve snagged a loan offer with a generous loan amount at low-interest rates. But it is essential to check if your lender imposes a charge on early settlement. Some lenders can charge an early repayment fee, but they always mention such conditions in the contract. So, thoroughly review your contract before signing and check how much you’ll be charged.

Your chances of qualifying for competitive offers depend on a variety of factors. Here’s what drives the lender’s decision when it comes to long-term loans:

  • The desired loan amount
  • The term of your loan
  • Proof of income
  • Debt-to-income ratio
  • Your credit history and credit score

As long as you satisfy a lender’s requirement, you’ll be offered competitive terms, ergo, a lower interest rate. If you genuinely want to make the best of your offer, don’t just compare interest rates; try comparing the APRs. Annual Percentage Rate or APR is the overall cost of your loan. APR includes all additional charges imposed, loan origination fee or brokerage fee, per se, when you take out a loan. A long-term loan offer with a relatively lower interest may have a high APR. So, consider these extrinsic factors before concluding your decision.

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The key to responsible borrowing is keeping up with your repayments. Lenders report all payments to credit bureaus. So, a missed payment could be detrimental to your credit score. Assessing your affordability before applying for the loan will also help you make an informed decision.

How to apply for long term loans online?

  • Work out a loan amount: Assess your income and expenses to work out a suitable and affordable loan amount.
  • Self-assess your credit: Self-assessing your credit profile beforehand will give you an idea of what to expect when applying. Besides, it buys you some time to improve your credit score by paying off outstanding debts, utility bills or disputing incorrect items on the credit report.
  • Complete the online application procedure: Fill out a quick online application form with accurate details and information about your loan. You should apply meticulously, with utmost attention, since lenders may mistake a human error for identity fraud and impose charges.
  • Compare loan offers: Compare pre-approved offers to choose the one that aligns perfectly with your financial checklist. It is important to compare both the interest rates and APRs to find the most suitable loan offer. Check if your lender imposes any additional charges to make an informed decision.
  • Disbursal: Once you choose a loan offer, the respective lender will run a hard credit check into your profile. After completing the contractual formalities, the lender will disburse the money into your account using wire transfer. Use the funds responsibly and repay the instalments on time.

What are the pros and cons of a long term unsecured loan?


  • Borrow a larger sum of money: You can borrow a significantly more significant sum of money with long-term loans. So if you were running out of ways to finance your home improvement project or a new car, a long-term loan could get you the funds.
  • Competitive interest rates: If you apply for a long-term loan with a decent credit report, you may qualify for competitive interest rates. Do keep in mind that you’ll end up paying more in interest with a longer loan term.
  • Affordable instalments: Since a long-term loan is spread across a longer duration, you’ve to pay smaller monthly instalments. Thus, these loans make repayments more bearable.
  • Repayment flexibility: Lenders generally don’t have any hard and fast rules concerning the repayment period. So as a borrower, you’ll have the liberty to choose a repayment period that you find convenient.


  • Extended repayment periods: It’s not easy for everybody to keep up with repayments for as long as 7-10 years. Repaying a long-term loan can be tedious. Such a commitment requires your discipline and dedication. So, ensure that you’re prepared to take up such a responsibility.
  • Might pose a threat to your collateral: Did you take out a long-term loan using collateral security? A default may put your property at risk. Make a repayment plan beforehand and adhere to it religiously.
  • Early repayment charges: Some lenders impose a charge on the early settlement of a long-term loan. Attentively read the terms of the contract to know if your lender will levy an early repayment fee.


Long-term loans can be a great way to finance big-ticket expenses. However, you must remember that the longer the term, the more you may end up paying as interest. Therefore, make an informed decision by appropriately choosing your loan option.

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