What is a long-term loan?
A long-term loan, as the name suggests, is a loan that is repaid over a longerperiod of time – ranging from 18 months up to 5 years. In most cases, these long-term personal loans involve a higher sum of money, usually upwards of £1,000. The loan can be repaid, along with interest in the form of regular monthly instalments over the pre-decided length of time.
Long term loans can be of two types –
- Secured loans, wherein you need to pledge an asset such as your house as collateral.
- Unsecured loans, wherein you do not pledge any asset.
The type of loan you get will be based on your preferences, as well as your credit score and repayment ability.
What are the Benefits of Long-TermLoans?
Loans taken with an intention to be paid over a longer period of time entail many benefits such as –
- Lower monthly repayments which ensure higher disposable income
- Improved credit score, as a result of showing your commitment towards responsible borrowing
- Relatively lower interest rates, as compared to short term loans
Despite the numerous benefits, when taking a loan for a longer period of time, it is important to remember that there are certain limitations. For instance, while your monthly instalments are lower, the overall interest paid on these types of loans are higher making the loans costlier.
Can I Get a Long-Term Loan If I Have BadCredit?
Frankly speaking, it is hard to find longterm loan options with bad credit. While there are lenders who are willing to offer these loans to individuals with poor credit history, you must know that the interest rates in such cases will be significantly higher. Moreover, the amount you can borrow will also be lower. Since you will have just a few deals to choose from, you might not get what you are looking for.
Hence, before applying for a longterm loan, you might want to improve your credit score first. If you do not have the time, or the means to improve your credit score and need some funds right away, you can opt for short term loans like no-guarantor loans or 12-month loans.
How Can I Get a Long-Term Loan?
The onlineprocess for getting this loan is fairly simple and hassle-free. All you need to do is follow the below-mentioned steps –
- Tell Us About You
Fill in the online application form with personal and professional details such as – date of birth, contact number, email address, current employment status, bank account details, residential address, and the loan amount you need and for how long.
- Get the decision
Our lenders will verify the information provided by you. They will also assess your loan eligibility to evaluate your creditworthiness. They need an assurance that you will be able to repay the money to them, without fail. The decision made by them will be displayed on the screen within a few minutes.
- Loan disbursal
If the lender approves your loan application, the loan amount will be disbursed by the lender to your bank account. The time taken for loan disbursal depends on the lender you’ve chosen and your bank.
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FAQs on LongTerm Loans
Find Long term loans – With Loan Broker
Loan Broker is an FCA registered credit broker that operates across the major cities of the UK. All the lenders associated with it are also authorised by the financial regulator. The mission is to promote responsible lending and hence, our lenders perform soft credit checks to offer initial quotes. Soft credit checks are safe as they do not leave any footprint on your credit report and doesn’t even harm your credit report.
We do not charge any upfront fees to our consumers. We offer an array of unsecured loans such as – debt consolidation loans, self-employed loans, to help borrowers get back on their financial track. As a credit broker, we help our borrowers to find the right lender by considering their requirements. With Loan Broker by your side, you can choose no obligation loans. We are loan brokers, committed to extending a true hand of help for borrowers seeking hassle-free, and affordable loans despite bad credit rating.
Borrow responsibly and repay timely.