Compare long-term personal loans

When you’re looking to make a personal loan more affordable, you might be tempted to borrow less. But if you need a certain amount to make an expense manageable, then a longer term might be a better option. You’ll have multiple years to repay your loan, and though you’ll have to pay more toward interest, your monthly payments will stay low.

What is a long-term personal loan?

A long-term personal loan is a loan that has a repayment period of more than three years. Loan terms that are this lengthy are often used for big purchases — cars, boats, complicated surgeries or big weddings.

You still have monthly payments, just like a personal loan with a short repayment term, but the total amount you pay each month is generally smaller. However, it comes with a downside: You’ll pay more toward interest.

How much can I borrow with a long-term loan?

Usually, long-term personal loans are for amounts greater than $10,000. However, it depends on the lender — you might be able to find some for less.

Some lenders also only offer the largest loan amounts for the longest loan terms, so a long term it could be your only option if you want to borrow $50,000 or $100,000.

How does interest work on a long-term loan?

Like with any other type of personal loan, you have a choice between fixed- and variable- rates on a long-term loan. Fixed-rate loans have steady repayment amounts, while variable-rate loans have repayments that change based on the lending market.

A longer loan term means there’s more time for interest to add up, making it more expensive. There’s also more time for variable rates to fluctuate, making your repayments even less predictable than a variable-rate loan with a shorter term.

5 lenders that offer long-term loans

Lender	Maximum term
Monevo	144 months	Get your rate
LendingTree	Varies based on lender	Get your rate
SoFi	84 months	Get your rate
Even Financial	84 months	Get your rate
Marcus by Goldman Sachs	72 months	Get your rate

1. Monevo

• Terms: From 3 months to 12 years
• Amount: From $500 to $100,000
• APR: 3.49% to 35.99%
• Eligibility:

This connection service can help you quickly compare lenders that offer long-term loans. Its partners offer some of the longest terms out there for those that really want to stretch out their repayments. There are also options for borrowers of all credit types.

Read review

2. LendingTree

• Terms: Varies based on lender
• Amount: From $1,000 to $50,000
• APR:
• Eligibility:

Another connection service, LendingTree works with partners offering a wide array of financing options beyond personal loans. While the loan amounts aren’t as high as Monevo’s partners and terms not quite as long, it could be a viable option for finding a quick, inexpensive loan.

3. SoFi

• Terms: From 2 to 7 years
• Amount: From $5,000 to $100,000
• APR:
• Eligibility:

SoFi might be best-known for student loan refinancing products, but it also provides long-term loans with a slew of perks from discounts on future loans and networking opportunities. It offers some of the largest loans out there for an online provider.

Read review

4. Even Financial

• Terms: From 2 to 7 years
• Amount: From $1,000 to $100,000
• APR: 4.99% to 35.99%
• Eligibility:

Even Financial is a connection service for to borrowers of all credit types. It could be particularly useful for those looking for a long-term debt consolidation solution. Take advantage of its advanced searches and debt refinancing calculator to find a loan tailored to your needs.

Read review

5. Marcus by Goldman Sachs

• Terms: From 3 to 6 years
• Amount: From $3,500 to $40,000
• APR: 6.99% to 19.99%
• Eligibility:

This direct online lender specializes in debt consolidation, though you can use the funds for any personal expense other than higher education costs.

It doesn’t change any fees and members can qualify for deferred payments after establishing a record of paying it back on time. But you won’t be able to borrow as much as with other lenders and you need strong credit to qualify.

Read review

Compare personal loans with terms up to five years

5 questions to ask when comparing long-term personal loans

1. What is the interest rate of the loan? Interest largely defines what your payments will be over the course of the loan. Take your rate into account when you calculate what your monthly payments will be.
2. Is the loan secured or unsecured? Secured loans require collateral and will typically have lower interest rates in comparison to unsecured loans, which don’t require collateral.
3. How much is the loan amount? The amount you can borrow depends on various factors such as your credit score, what you need the funds for, your ability to provide suitable collateral, your annual earnings and your monthly expenses.
4. Can you repay the loan early? Repayment flexibility may be important to you even if you want a long-term loan. You may come into some cash and want to make extra payments or decide you want to pay your loan off altogether before the original payoff date. Find out if you can do so without penalty.
5. What are the other fees and charges on the loan? Check your loan contract for a full list of fees and charges you may have to pay. Some loans with longer terms have maintenance fees and other small charges that can quickly stack up to make your loan much more expensive.

Why should I take out a long-term personal loan?

• Lower your payments. A loan with a longer term means lower repayments, giving you more flexibility with your finances during the loan term.
• Take advantage of early repayment. By choosing a longer loan term and making additional payments, you could pay your loan back sooner while taking advantage of its lower monthly cost.
• Choose between fixed and variable rates. When you’re looking for a long loan term, you may have a choice between a fixed- or variable-rate loan. Each has its benefits, and some lenders even allow you to have a fixed rate near the beginning of your loan term and change it to a variable rate later on.
• Finance a large expense. Long-term personal loans allow you to finance more expensive purchases such as cars or boats as well as big events, like a wedding or medical expense

3 pitfalls of long-term personal loans

• Excessive debt. While taking out a long-term personal loan might seem like a good idea, it might lead to debt that may be difficult to repay. Try to make a repayment plan ahead of time and have a contingency in place for unexpected expenses.
• Fees and charges. Make sure you go through all the fine print and find out exactly what you have to pay in terms of fees and charges. These can come in the form of application fees, insurance costs, origination fees, early repayment fees, settlement charges and late charges.
• Tendency to splurge. Long-term personal loans normally set a minimum loan amount that may leave you with a larger chunk of change than you needed. If you’re not responsible with that extra cash, you can be tempted to spend it on things you can’t afford.

Case study: Savings with a shorter loan term

For example, let’s say you’re looking to borrow a $40,000 loan. You can choose between a 4-year term and a 7-year term, and the lender offers you the same interest rate for either. As the table below demonstrates, you’ll save thousands on interest with the shorter term, but your budget may be stretched thin with higher monthly payments.

	4-year loan	7-year loan
Interest rate	12.99%	12.99%
Loan amount	$40,000	$40,000
Monthly payment	$1072.90	$727.46
Total interest	$11,499	$21,107
Difference		+ $9,608 more in interest

Although a longer loan term may be more convenient and provide lower monthly payments, you may end up paying more in interest over the long haul. And if you aren’t sure, you can read our guide on how personal loans work to get a more clear picture of the borrowing process.

How to apply for a long-term personal loan

Applying for a long-term personal loan is rather straightforward and you should compare your options before getting to this step. As part of the application process, most lenders will want to take a look at a few things including:

• Credit history
• Identification
• Proof of residence
• Employment status and history
• Proof of income

If you’re applying for a secured loan, you’ll have to provide documents to prove ownership of the collateral in question.

Bottom line

A long-term personal loan could be just the right thing to tackle that home improvement or pay for your dream vacation. But if you aren’t careful, you may end up paying much more than you expected in interest. Having a budget in place and being sure you’re only borrowing as much as you need will help you avoid going into debt that you can’t afford.

Before committing to a lender, compare your personal loan options to see which lender can best suit your needs.

Frequently asked questions

• How long will it take to get approved?

  Some lenders provide preapproval within minutes. Once you finalize the loan contract, it may take a few days or weeks to receive approval that comes with a firm offer.

• What happens if I miss a payment on my personal loan?

  First, you’ll likely be subject to a late payment fee. You might be able to get the penalty waived once if you’re in good standing and it was an honest mistake. However, multiple missed payments can result in defaulting on your loan.

• If I can't repay my loan, will I go to jail?

  You won’t go to jail for not being able to pay back your debts, but you should know that your credit report will have a black mark on it that will be tough to scrub out. This will highly affect your borrowing power in the future. And if you had a secured loan, your collateral could be taken for the lender to recoup losses.