Long Term Personal Loan

What Is a Long-Term Personal Loan?

Personal loans are unsecured loans that can be availed by any individual to fulfill any need, including organising a wedding, a dream vacation for the family, debt consolidation, etc. Long-term loans refer to those loans which have a repayment tenure of 3 years and above. At SMFG India Credit, we offer personal loans with flexible repayment tenures of up to 5 years.

In general, long-term loans typically refer to term loans that have a maturity period of longer than 5 years, such as home loans, mortgage loans, etc. However, in the context of personal loans, a long-term loan is one which exceeds 3 years. Typically, these loans are associated with high-value expenditures such as higher education, home renovation, medical emergencies, etc.

A longer repayment tenure could help reduce the EMI amount. But, in hindsight, you end up paying a lot more in terms of interest and other fees. A personal loan EMI calculator comes in handy as you can check the monthly EMI amount during the repayment tenure. Knowing the amount in advance helps you to make any tweaks, such as lowering or increasing your loan amount and plan your finances towards repayment accordingly.

At SMFG India Credit, personal loans with a tenure of 7 years or more do not exist since the maximum tenure is up to 5 years. If you are looking for a loan with tenure longer than 5 years, you may have to pledge security such as property or financial assets. To know more, please visit our Loan Against Property and Loan Against Securities pages.

Eligibility Criteria for Long-Term Personal Loans

Online long-term personal loans come with some basic eligibility criteria, but the overall interest rate and the loan amount will be largely determined on a case-to-case basis depending on your profile. The guidelines may differ depending on the lending institutions. Having said that, let’s take a look at SMFG India Credit’s eligibility criteria that all applicants need to meet.

• You must be between 24 and 60 years of age at the time of loan application.
• You must have a steady source of employment and income.
• You should be an Indian resident.
• You must have the required documentation.

To know more, please visit our personal loan eligibility page or contact us today.

Documents Required for a Long-Term Personal Loan

For any long-term loan application, SMFG India Credit requires individuals to submit documents that verify the information provided. Here is a list of documents required for personal loan.

• Basic KYC documents including valid address proof - such as PAN, Aadhaar card, driving license, passport, etc.
• Proof of income such as Salary slips (for salaried customers) or income statements (for self-employed individuals)
• Bank statements for the past 12 months
• For self-employed individuals - proof of business existence and audited financial statements for the past 2 years.

Interest Rates for a Long-Term Loan

Before applying for a long-term loan online, the interest rate is an important factor to consider in your decision-making. A higher interest rate will increase your EMI amount and overall loan cost, which can have a significant impact on your finances over time. A strong credit score of at least 700 and a stable source of income can improve your chances of qualifying for a lower interest rate. At SMFG India Credit, we offer personal loans with competitive interest rates starting from 12.5%* per annum. For more details on personal loan interest rates, fees, and charges, visit our interest rates page.

How to Apply for a Long-Term Personal Loan Online

Here’s how you can easily complete your long-term loan application at SMFG India Credit:

1. Provide Basic Details

Enter necessary information like mobile number, PAN, pincode, and your employment type (salaried or self-employed).

2. Verify Mobile Number with OTP

Receive and enter a 6-digit OTP for mobile verification.

3. Fill Additional Information

Input additional information like your email address, date of birth, gender, and annual household income; email ID verification is also crucial.

4. Enter Employment Details

If you are employed with an organisation, please provide the relevant employment information.

5. Bank Statement Submission

Upload your bank statement or share it through Net Banking or an Account Aggregator. The banking details will be used to generate a loan offer (applicable only for salaried employees).

6. Identity and Address Verification

Complete the process of verifying your identity, including taking a selfie, and share address details through CKYC, Offline Aadhaar XML-based KYC, or DigiLocker.

7. Enter Your Bank Account Details

Submit your bank account details, which will undergo verification from us.

8. Add Extra Details

Post-verification of the bank account, submit details such as the loan purpose and marital status in the ‘Additional Details’ section.

9. Complete E-NACH Setup

Choose your re-payment method, opting between debit card and internet banking, and set up E-NACH.

10. Digitally Sign the Loan Agreement Post-Review

Carefully review and sign the loan agreement digitally and authenticate it with an OTP.

Complete these easy-to-follow steps and take one step closer to meeting your financial goals.