Long Term Personal Loan are personal loans that are provided for a large amount of money and a long time period. This loan is taken with people having a need of a large amount of money for some personal reasons. These people are normally businessmen or people in high positions in large companies. These people can have unforeseen urgency at any time and a personal loan is a fast option for them to get this kind of money. This type of loan can be obtained for a loan amount of up to Rs 20 lakhs and a comparatively larger time period of repayment up to 5 years and for some cases even more than this, this all depends on the applicant’s credentials and the bank policies.
This loan is meant for people with very good income and great credit history. Credit history is an important feature in these types of loans as these loans are provided to the applicant without any security or collateral. Security or collateral is the asset you pledge to the bank in lieu of the loan so that in case you are unable to repay the loan then the bank can use that asset to recover their loan amount. The rate of interest on these long-term personal loans is comparatively lower than the interest rate on the short-term personal loans as these are considered more secured as people with good reputations are involved in this type of loan.