Long-Term Loans

A long-term loan allows you to borrow money for tenures starting from 5 to 7 years to upto 20 to 30 years (in case of home loans). It can be used for a variety of purposes like purchasing a home or starting a business. These loans offer flexibility and lower monthly installments. However, the longer you take to repay, the more interest you might pay. Therefore, it's vital to choose a repayment term that aligns with your financial goals and ensures a cost-effective loan journey.

Long-Term Loan Interest Rates & Charges

Get fast financial help with instant personal loans. Long-term loans provide funds precisely when necessity strikes. Here are the highlights of the interest rates and charges for long-term loans:

Loan Amount Ranging from ₹10,000 up to ₹15 Lakhs
Type of Loan Unsecured long-term personal loan
Interest Rates Starting at 11.99%* p.a.
Tenure Repayment tenure starts from 6 months to 5 years
Processing Fees Up to 4% of the loan amount
Note: The interest rates are dynamic and subject to change based on your credit history and creditworthiness

Types of Long-Term Loans

Long-term loans help in fulfilling various financial aspirations whether you're planning to buy a home, fund education, or kickstart a business. So let’s discover the variety of long-term loan options available to you.

Personal Loans: Long-term personal loans are unsecured with repayment tenures exceeding 3 years. Despite the extended duration, interest rates may be higher compared to secured loans. However, personal loans offer versatility with flexible loan tenure, addressing various financial needs.

Education Loans: Loans for Educational purposes are designed for individuals pursuing higher studies. These loans offer an extended repayment tenure ranging from 3 to 30 years. They cater to both domestic and international education expenses, providing financial support for academic pursuits.

Home Loans: Loans for home purchase are a prominent example of long-term loans, exceeding a repayment tenure of 3 years. Typically associated with significant loan amounts, these loans require collateral and a guarantor. Home loans often include a pre-closure option, allowing borrowers to pay off the loan before the agreed-upon tenure, although charges may apply.

Car Loans: Loans for Car purchase are a handy way to get the car you want with a repayment period extending up to 7 years. The interest rates are affordable and lenders may also offer a pre-payment option, subject to fees, providing flexibility for borrowers.

Small Business Loans: Long-term loans extend beyond personal finance to include small business loans, serving both individuals and companies. These loans support business expansion or the purchase of significant assets like machinery. With repayment tenures surpassing 3 years, small business loans provide financial flexibility, enabling enterprises to manage cash flow more effectively.

Long-term Payday Loans: Long-term payday loans offer small amounts for urgent financial needs, allowing borrowers to pay in small installments over an extended period. Similar to other long-term loans, they require standard eligibility criteria and documentation. These loans provide a practical solution for those facing immediate financial challenges, offering a more extended repayment horizon.

Eligibility Criteria for Long-Term Loans

If you're thinking about getting a long-term personal loan, you must qualify the eligibility criteria. As the criteria can vary between different lenders, it's suggested to reach out to your specific lender to know their exact eligibility requirements. Below are the typical eligibility criteria for a long-term loan:

Eligibility Criteria Requirements
Citizenship Must be a resident of India.
Age Range Minimum 21 years to a maximum of 60 years.
Employment Salaried individuals, public/private sector employees, government workers, and self-employed professionals/non-professionals.
Minimum Salary Monthly income of at least ₹15,000.
Creditworthiness A credit score of 750 or higher is preferred.

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EMI Calculation For Long-Term Loan

If you are planning to avail of a long-term instant loan, it's essential to assess your Equated Monthly Instalment (EMI) beforehand to ensure it fits within your repayment capacity.

Evaluating your EMI becomes effortless with a long-term Personal Loan EMI Calculator. By simply entering the loan amount, interest rate, and loan tenure, the calculator will provide you with precise monthly installments. This tool enables you to easily determine the loan amount you'll need to pay each month.

Determining the Equal Monthly Installment (EMI) for a long-term personal loan is straightforward yet essential for smart financial planning. Use this formula:

EMI = P x R x (1+R)^N / [((1+R)^N) - 1]

EMI = Equated Monthly Installment
P = Principal Loan Amount
R = Interest Rate
N = Loan Tenure in Months

To illustrate:
Let's compute the EMI for a ₹500,000 personal loan at a 10.90% annual interest rate for 3 years (36 months):

Loan Amount = ₹500,000
Monthly Rate = 10.90%/12 = 0.909167%
Loan Term = 36 months

Plugging this into the formula:
EMI = [5,00,000 x 0.909167 x (1+0.00909167)^36] / [(1+0.00909167)^36-1]
EMI = ₹16,346

So the monthly EMI for a ₹500,000 loan at 10.90% interest for 36 months equals approximately ₹16,346. Calculating your exact EMI assists in effective financial planning for personal loans.

Top Banks Offering Long-Term Loans

Check out the wide range of top banks offering long-term personal loans. Empower yourselves with the ideal financial solution for your requirements with a personal loan.

Top Banks Interest Rates (p.a.)
State Bank of India 11% onwards
HDFC 10.50% onwards
Kotak Mahindra Bank 10.99% onwards
Axis Bank 10.49% onwards
Bank of Baroda 10.90% onwards

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Note- The interest rates mentioned are subject to change. Do visit the website for more information.

Documents Required for Long-Term Loans

To ensure quick approval, make sure to submit the following essential documents, each serving a specific purpose in verifying your identity, address, and income. Let's explore the key documents required for a long-term loan:

Document Type Accepted Documents
Proof of Identity Government-issued photo ID (Aadhaar card, Passport, Voter ID)
Proof of Address Valid address proof (utility bills, rental agreements)
Income Proof Salary slips, bank statements, income tax returns
Photographs Passport-sized photographs

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Apply for a personal loan with tenure up to 5 years!

Features & Benefits of Long-Term Loans

Long-term loans offer a range of advantages that can positively impact your financial situation. Here are some key benefits:

Lower Monthly Payments: With longer repayment periods, monthly installments are often more manageable, providing financial flexibility.

Affordability for Major Expenses: Long-term loans are ideal for significant expenses like buying a home or funding higher education, allowing you to spread the cost over an extended period.

Stable Interest Rates: Fixed interest rates on long-term loans provide stability, helping you plan and budget effectively without worrying about sudden rate increases.

Improved Credit Score: Repaying your long-term loan on time can positively impact your credit score, demonstrating responsible financial behavior to creditors.

Flexible Repayment Options: Many long-term loans offer flexible repayment options, including the possibility of early personal loan repayment without substantial penalties.

Steps to Apply For Quick Loan

Getting instant funds during an emergency can be extremely helpful. With Buddy Loan, you can get quick loans from top RBI approved lenders in just minutes. All you have to do is follow these few steps and get your loan in minutes!

Step 1: - Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).

Step 2: Open the Personal Loan Application Page. Provide the mobile number and enter the received OTP.

Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option

Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).

Step 5: Enter your work details (Including company name, years of service and Designation)

Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)

Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.

Ready to take the next step? Apply for a personal loan with tenure upto 5 years!

Frequently Asked Questions

A long-term loan is a type of borrowing with a repayment period exceeding one year, often used for major expenses like buying a home or funding education.

The repayment tenure for long-term loans can range from 3 to 30 years, depending on the type of loan and the lender's terms.

General eligibility includes being an Indian resident, aged between 21 and 60 years, with a minimum monthly income (varies by lender), and a good credit score, usually 750 or higher.

Yes, many long-term loans allow pre-payment. However, some lenders may charge a fee for early repayment, so it's essential to check the terms.

Common documents include proof of identity (Aadhaar card, Passport), proof of address (utility bills, rental agreements), income proof (salary slips, bank statements), and passport-sized photographs.

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