Ever since we take charge of our finances, we work towards many goals that serve a long-term purpose in life. Whether going for higher education, buying a car, getting married, medical emergencies, or even buying a house, personal loans provide various long-term loan options to borrowers suiting their budget and needs.
Loans that are extended to be paid off over a period greater than three years are long term. This gives borrowers the freedom to repay a hefty loan over an extended period. Securing a personal loan is just a few clicks away with technological advancements. The flexibility and options available almost make it exciting to take a loan!
Let us look at long-term personal loans in some more detail.
Things to know about long-term personal loans
– No collateral
Personal loans are a hit in our country as they don’t require collateral against the loan amount. Thus, one can get a long-term loan for a destination wedding without pledging their house as a guarantee. It is also a boon in the case of sudden medical emergencies.
– High Loan Amount
Long-term loans can let borrowers take high loan amounts according to their loan-taking capacity. Compared to short-term loans, since this has to be paid over a long time, a higher principal amount can be paid off more quickly.
– EMIs and Interest Rate
The longer tenure allows the borrower to pay a reduced EMI every month. Long-term personal loans also enable the borrower to choose the time according to their repayment capability. However, over the long term, the borrower might have to pay more due to higher interest rates and loan fees on long-term loans. A borrower can assess the EMI they would have to repay every month using a Personal loan EMI calculator by conveniently putting in the required loan amount, loan period, and interest rate in the calculator, and getting an EMI amount within seconds.
Let’s understand the eligibility, the documents required, and the importance of a good CIBIL score.
Personal loans can be availed by students, salaried individuals, and retired individuals who have a minimum amount of regular income as required by the loan provider. A number of factors, such as fixed monthly income, professional experience, age, and credit rating score, play a key role in deciding the individual’s loan eligibility. A good CIBIL score is essential as it ensures the lender of the borrower’s loan-repayment capabilities by summarising their credit history and rating.
If you are looking for a long-term personal loan, keep all these factors in mind while deciding. It is also crucial that you maintain a CIBIL score above 700, which is considered a good credit rating, and calculate your EMI accurately for easy loan repayment.
Tata Capital, India’s trusted lending institution, can help you take your loan aligned with your financial goals. It provides loans that are unique to every borrower’s need for an interest rate starting at just 10.99% for a period of up to six years. With their long-term repayment option, flexible EMIs, reasonable interest rates, and quick accessibility, they are an excellent option for borrowers to meet their personal needs in a customizable way.
So, if you are looking for a personal loan, we will help you go for it!