Long Term Personal Loans - Pros & Cons You Should Know

Unplanned and unforeseen expenses are coming on your way - Don’t panic as long-term personal loans are here to help you out. Be it a medical emergency, higher education opportunity, traveling to a dream destination, or other expenditures, a personal loan can be a true savior during your financial crisis. Quick loans are designed to meet the cash crunches for various needs.

 

A long-term personal loan allows the borrower to choose longer repayment tenure such as 5 to 7 years. Though there are short-term personal loans available, come with flexibility and maximum convenience. But the main advantage of choosing long-term personal loans over short-term personal loans is the EMI amount. In the case of the long term, the EMI is lesser than the short term. There are multiple benefits of getting a long-term loan but at the same time, the cons should not be overlooked. Before you plan and proceed with your loan application, check out the advantages and disadvantages of long-term personal finances.

 

Pros of Long Term Personal Loans

 

• One of the most significant advantages of long term loans is that you don’t have to pledge collateral to avail it. Apply for a loan and get it without putting anything as guarantee.
• Long term personal loans are flexible and extremely versatile. You can use it for multiple purposes.
• Long term loans come with lesser interest rates. This makes this option one of the best financing tools available in the market.
• Comes with convenient repayment options, ranging from 5 to 7 years or more. A longer tenure reduces the EMI amount so the repayment becomes easy.
• Opting for long term personal loans allows you to get a better loan amount.
• If you want to enhance your credit score, then a long term personal loan works best for you. The improvement of credit score takes a quite long time, and this type of loan with increased tenure helps you to achieve that.

 

Cons of Long Term Personal Loans

 

• A long term quick loan means a longer tenure with more interest which means at the end of your tenure period, you have to pay out much more than you have actually borrowed.
• A long term personal loan will keep you under a debt pressure for a longer period. You have to make timely repayment in order to maintain the financial stability.
• You can avail this type of personal finance with a low credit score also, but remember in that case the higher interest rate you may need to pay on your loan amount.
• Personal loans come with late payment penalties. So, if you fall on repaying your loan on time, then you have to pay extra charges.

 

Online personal loans can be both short term and long term. As per your convenience and loan repayment capacity, you can choose the one that will match your needs. At Buddy Loan, you can avail of a loan up to Rs. 15 Lakh at low interest and flexible repayment ranging from 6 months to 5 years. Deciding the right tenure for your personal loan is crucial, so before you proceed further check the above-mentioned pros and cons, and then take the final decision. Also, do proper research before contacting a lender, compare the deals and choose the best personal loan.