Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Personal Loan BYTES FROM OUR KITCHEN

    Long Term Loans

    A form of loan that is paid off over an extended period of time greater than 3 years is termed as a long-term loan. This time period can be anywhere between 3-30 years. Car loans, home loans and certain personal loans are examples of long-term loans. Long term loans can be availed to meet any business need like buying of machinery or any personal need like owning a house.

    Long-term loans are the most popular form of credit in the financial industry. With the advent of technology and easy banking, home loans and auto loans have become a prevalent form of loan. These loans generally offer a hefty loan amount and are thus spread over a considerable period of repayment tenure. Features of long-term loans can vary considerably depending upon the cause for which these loans are being taken. Long-term loans almost always offer pre-payment option to customers so that people who want to pay-off their loan earlier than the stipulated timeframe do not have to pay continuously for long tenures.

    Long-term loans are sanctioned based on the regular income of an applicant and generally require a continuous source of income as well as collateral to be submitted with the lending bank.

    Features of long-term loans are generally similar across loan products however, they differ based on the category of loan. Hence, home loans differ slightly in features with respect to vehicle loans.

    Long Term Loan
    • Higher loan amounts

      Long-term loans generally come with higher loan amounts. Hence, home loans, auto loans etc. offer hefty loan amounts as compared to short-term loans like personal loans. Since, these loans are mostly secured via collateral submission hence banks are not apprehensive in lending heavy loan amounts to long-term loan applicants.

    • Lower rate of interest

      Since the time period of loan repayment is higher for long-term loans, banks and other lending entities levy lower rate of interest on these loans. Hence car loans and home loans come at lower rates than personal finance.

    • Collateral Submission

      Since the loan amount involved in long-term loans is way higher than other types of loans, collaterals are almost always required to be submitted to the bank. This helps banks in recovering lost cash in case a borrower defaults to repay the loan.

    • Repayment in installments

      Repayment of long-term loans generally happens in equated installments spread over a substantial period of time. These monthly installments are generally made up of two components, principal and interest.

    • Tax Benefits on long-term loans

      Tax benefits are applicable on long-term loan repayment. However, this depends upon the type of loan. For example, an auto loan is a luxury loan and hence it does not offer any tax rebate whereas home loan is a loan for the basic need of housing and as such offers tax exemption on the repayment of loan. These tax benefits are subject to laws under the Income Tax Act.

    Examples of long-term loans

    Long-term loans are loans whose repayment is spread over a long period of time. This definition applies to several types of loans. Long-term loans is just a broad category of loans and is a wide umbrella which has numerous sub-categories of loans under it. Listed below are some of the most prominent examples of long-term loans.

    • Education Loans

      Education loans or student loans are generally granted for a long period of time especially for courses like engineering and medical. These loans offer a longer repayment tenure to applicants. These loans are taken for a period of more than 3 years and this can go up to a period of 30 years. Education loans can be taken by applicants who wish to go for higher studies in India as well as abroad. The loan amount limit and the rate of interest might differ according to the lending entity as well as according to the course for which loan is being sought.

    • Home loans

      Home loans are one of the most suitable examples of long-term loans. The tenure for home loans goes much beyond 3 years and the loan amount is considerable. Collaterals require to be submitted to the bank and a guarantor also is required to sign the loan application. These loans offer pre-closure option to customers and depending upon the lending bank, this option may be charged or not charged. Home loans also give buyers the option of choosing between fixed and floating rate of interest.

    • Car Loans

      Car loans have slowly become the most necessary loan instrument in recent times. Since the time banks eased the process of obtaining credit for purchase of vehicles, taking car or auto loans have been on the rise. Cars are considered as luxurious items and as such rates offered on these loans are higher than those for home loans. However, stiff competition among lending entities have forced banks to lower the rate of interest for car loans. A typical car loan may have a long-term payment tenure of up to 7 years. Pre-payment of loan is available for car loans and is subject to a pre-closure fee in case of certain banks. On the other hand, some banks do not levy any penalty fee on pre-payment of car loan amount.

    • Personal Loans

      Personal loans that offer a repayment tenure of more than 3 years come under the category of long-term loans. However, even when these loans are longer in tenure, the rate of interest offered is not low because personal loans are mostly unsecured loans and as such borrower does not need to submit any collateral as security. Banks do not have any collateral to fall back on in case a borrower defaults to pay back his/her personal loan.

    • Small Business Loans

      Long-term loans can be availed by both individual customers as well as companies. For expansion of business or buying of heavy machinery, business houses may also require credit in the form of loans. These loans are known as small business loans. These loans can have a tenure greater than 3 years and can have loan repayment installments that last for a substantial number of years. All major public and private sector banks offer small business loans as part of their loan portfolio.

    • Long-term payday loans

      Long-term payday loans are small loan amounts that are offered for a long repayment tenure. These loans require similar eligibility criteria and documents that are needed for other types of long-term loan. These loans are best suited for urgent financial needs of customers who wish to pay in small installments over a substantial repayment period.

    Eligibility Criteria for long-term loans

    Long term loans offer huge loan amounts and as such have stringent eligibility guidelines. However, these criteria differ with different lending banks. Listed below are some of the most common criteria that apply to almost all long-term loans.

    • Applicant should be aged between 18-35 years of age
    • Applicant should be earning a regular income
    • Applicants should be a resident of India
    • A guarantor is required to sign the loan application

    Documents required for long-term loans

    Certain documents needs to be submitted to the lending bank for approval of any long term loan. The list of these documents differs according to the lending bank. Most banks require a copy of the following listed papers.

    • Proof of permanent address
    • Proof of identity, passport, voter ID, driving license etc.
    • Income proof of co-applicant/guarantor
    • Optional guarantor form, duly filled
    • Bank account statements if required by the bank
    • Salary slips of the applicant

    FAQs regarding long term loans

    What are long-term personal loans?

    Long-term personal loans are offered to customers who wish to avail credit for a longer tenure but are in urgent need of cash for purposes that cannot be defined as a loan category. For example, a wedding in the family or house renovation etc.

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

    The biggest advantage of long-term loans is that these offer longer tenures and hence lower rates of interest. The biggest disadvantage of long-term loans is that you will almost surely be required to submit some form of collateral to avail this loan.

    What role does my salary play in helping me secure a long-term loan?

    An applicant’s salary is crucial to obtaining long-term credit. Regular income is one of the primary criteria based on which banks sanction loan to customers. The loan amount you are eligible for depends upon the quantum of your annual salary.

    Are long-term loans only granted to individual customers?

    No. Long-term loans can be availed by business customers also for purposes related to the running or expansion of business. The documents required and the eligibility criteria will however slightly differ for business customers.

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

    Long-term loans generally offer lower rates of interest as compared to short-term loans. Also, long-term loans like housing loan may offer the choice of fixed or floating rates of interest to customers.

    Long Term Loans Reviews

    • Axis Bank Personal Loan
      "Excellent service"
      0.5 4.0/5 "Great!"
      I have applied for Axis Bank Personal Loan through online .The agent clearly explained the process of the loan.The rate of interest was as ok and the processing fee was also ok. while submitting the documents not yet faces any issues .The documentation part was more.The loan amount got on time .The loan amt was sufficient s well .The Overall Service is Good.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "Excellent service"
      0.5 4.5/5 "Excellent!"
      I came to know about Bank bazaar through advertisement only.Then i have checked for credit score .Bank bazaar is providing very good service as of now need to avoid calling the same person frequently.Then i have tried to apply for Tata Capital Personal loan .The agent clearly explained the process of the loan and not yet faced any issues as of now.The rate of interest was little bit high and the processing fee was acceptable .The Overall Service is Good .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Tata capital Personal Loan
      "Excellent service"
      0.5 4.5/5 "Excellent!"
      I have applied for Tata capital Personal Loan.I have not faced any issues. The rate of interest was littile bit high and the processing fee was little bit acceptable.The agent clearly explained the process of the loan.I have not faced any issues till now .The Overall Service is Good and satisfactory .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "GOOD PORTAL TO USE"
      0.5 4.0/5 "Great!"
      It is the first time experience with the Bankbazaar.com and i had a very good experience also i am using it through the mobile application as the application is user friendly and convenient to access. The customer service is very good and responsive. by explaining the details of the loan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 24, 2019
    • ICICI Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have been using the personal loan with the ICICI since from last few years the loan amount with them was good also the documentation process was simple and it was hassle free to use. The rate of interest with this nominal added on that the service is very good with this bank.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • ICICI Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have taken the personal loan with the ICICI BANK the loan amount with this bank what they have offered was satisfactory. The rate of interest with this bank was nominal also i am using it since from last one year and it is good to use.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "ONE STOP SOLUTION"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i have been using it since from last few months and i have a very good experience i have been using it through the mobile application as the application is user friendly also it is convenient to access. The customer service is good and they are responsive.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • IndusInd Bank Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      There is no particular reason for taking the personal loan with the INDUSIND BANK. The loan amount was good and the rate of interest was 10.5% which is nominal when compared to the others. The documentation process was easy and it is comfortable.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through online only .The Bank bazaar is the only online website giving all details about the banking products .I have applied for Tata Capital Personal Loan and not yet faced any issues .The agent clearly explained the process and not yet faced any issues as of now.The Overall Service is Good.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Tata capital Personal Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Tata capital Personal Loan. No clue on the rate of interest and charges levied by them,The agent clearly explained the process .I have not faced any issues till now .I have cancelled the plan of taking the personal loan since not require the personal loan .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Kotak Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      The reason for taking the personal loan with the KOTAK MAHINDRA BANK is i am an existing customer customer with this bank. The loan amount was good also the rate of interest was 11.5% with this loan and the duration is for 48months for repaying he loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bankbazaar.com and i had a very good experience with the Bankbazaar.com. I am using it through the mobile application as the application is user friendly and convenient to access. The customer service is very good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      It is the best loan that i have taken with the EarlySalary when compared to the other so i have taken this loan. The documentation process was simple and and also i got a loan within a day after the documents. The loan amount was lesser with this loan as they have given also the rate of interest was lesser.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 24, 2019
    • HDFC Bank Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      I have applied for the personal loan with the HDFC BANK and have been using it since from last few years and the documentation process was simple and it is easy procedure to get the loan. I got the loan within 10-15 days with this bank. The rate of interest was lesser with 11.5% with 4 years of duration.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "USER FRIENDLY PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar.com i am using it from last one year and i have a good experience and i am using it through the mobile application as well as the website both are easy and user friendly portal to access. The customer service is good and they are responsive.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      The loan amount was lesser along with that it is with lesser duration which is comfortable so taken the personal loan with the EarlySalary. The documentation process was simple and the documents collected at the doorsteps. I got the loan within 8-10days with this loan also, the loan amount is good with 12-13% of rate of interest.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 24, 2019
    • Axis Bank Personal Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the consumer durable loan with the AXIS BANK they have offered with the good loan amount also the documentation process was simple to get the loan. I have taken the MOBILE PHONE with this bank, the duration for repaying the loan is for 9 months.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Bank Bazaar Personal Loan
      "CONVENIENT PORTAL"
      0.5 4.0/5 "Great!"
      Bankbazaar.com this is the first time experience as i have been using it through the website the portal is convenient also it is user friendly to access.The customer service is good and also they are good by explaining the details of the loan.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "AVERAGE"
      0.5 4.0/5 "Great!"
      The documentation process was good with the EarlySalary where i have applied for the personal loan. The loan amount was good also the processing fee was nominal. The rate of interest was higher with this loan when compared to the other loans.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 24, 2019
    • Early Salary Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have applied for Personal Loan Early Salary. The agent clearly explained the process .The rate of interest was nominal and the processing fee was nominal. I have got loan amount on time .The loan amount was sufficient and not yet faced any difficulties.The Overall Service is Good and Satisfactory .
      Was this review helpful? 0
      , gurgaon
      Reviewed on Mar 24, 2019
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