A long term loan can make your monthly payments smaller and easier to afford, but it also makes it more expensive in the long term.
Most personal loans offer terms between one and five years, but if you need longer to pay back what you borrow some can last up to ten years.
Try to avoid choosing a longer loan to save money if you can afford to pay it back quicker. You can use our loan calculator to see if you could afford a shorter loan.
Get the best loan for your needs
Follow these three steps:
Work out how much you need to borrow
Choose how long you need to pay it back
Compare interest rates to find the cheapest option
This comparison shows long term personal loans which offer a term of four years or more, so you can compare rates easily to find the right loan before you apply.
Other things to check...
If you have decided to borrow over a longer period of time, it pays to check the following:
If the loan is secured or unsecured: Some long term loans are secured against your property, especially if you want to borrow for longer than five years. Here is how secured and unsecured loans work.
The type of interest rate: Most personal loans offer fixed rates, but some long term or homeowner loans have variable rates. This means the rate can change during your loan, so check before you apply.
If you can repay early without charge: Some lenders will allow you to pay back what you owe early without a charge, but others can make you pay a fee. This could save you money in interest charges and allow you to clear your debts quicker.
The lender's borrowing rules: Before you apply, check you meet all the lender's application guidelines, e.g. earning more than their minimum income
Long term loan FAQs
How long can I borrow for?
Most personal loans can last for between one and five years, but some lenders offer much longer terms, up to 10 or more years.
Is the interest rate fixed?
Most loans offer fixed interest rates, but a few offer variable rates, which could change during your loan term, so make sure you check.
Do I have to be a homeowner to apply for a long term loan?
No, some personal loans can last up to 10 years and you do not have to be a homeowner to apply.
Can I get a long term loan if I have bad credit?
Yes, choosing a longer term will not harm your chances of getting a loan, but long term loans for bad credit may not have the best rates.
What does APR mean?
It stands for annual percentage rate, and is the interest you pay on the total value of your loan. The lower your APR, the lower your monthly payments.
About our loans comparison
Who do we include in this comparison?
How do we make money from our comparison?
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.