Personal Loans are unsecured loans which can be availed by any individual to fulfill any need - including organizing a wedding, a dream vacation for the family, debt consolidation, etc. Long term loans refer to those loans which have repayment tenure of 3 years and above. Thus, long term personal loans are unsecured personal loans which have repayment tenure of more than 3 years. 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 which 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.
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 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.
In SMFG India Credit, Personal loan with tenure 7 years or more does 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.
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 individual 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.
To know more, please visit our personal loan eligibility page or contact us today.
For any long term loan, SMFG India Credit requires applicants to submit documents that verify the information provided. Here is a list of documents that required for personal loan.
Prior to your long term personal loan application, the interest rate plays a pivotal role in your decision making process. A high interest rate will make the EMI amount increase too. And repaying that over the long term can affect your finances significantly.
From the applicant perspective, a low interest rate is what they would ideally like to opt for. At SMFG India Credit, we offer personal loans with interest rates ranging between 11.99% to 36%.
To know more about personal loan interest rates, fees and charges, visit our personal loan interest rates page.
Personal loans with tenure of 5 years or more are the perfect way to finance heavy investments. Here is a step by step guide on how to make the application right till fund disbursal.
Long term loans can offer lower EMIs since they come with an extended tenure of repayment in comparison to short term loans. This certainly puts less pressure on the borrower financially. However, you also end up paying more in terms of interest and processing fees. Hence, depending on your financial situation while taking the loan, you can make an informed decision.
The income of the applicant plays a very important role in getting a long term loan approved. With a secure job and a regular source of income reinforces your repayment capability. Your income also helps to decide the upper limit of the loan amount that can be sanctioned.
Long term personal loans can be sanctioned to both individuals and businesses as long as they are able to meet the eligibility guidelines outlined, provide necessary documents and establish a good credit history that is aligned with the lender’s policy.
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