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Long term personal loans

Need a little longer to repay? Spread your payments over a term of up to 7 years with a long term loan.


Fact checked

Long term personal loans can be used for larger purchases with your repayments spread out over five to seven years. While this can be good for your budget with lower weekly, fortnightly or monthly repayments, it’s important to keep in mind that you will be in debt for longer. Having a longer term also means that you will pay more interest over the course of your personal loan, making it more expensive than choosing a shorter term.

Our top pick:

The Lending People - Personal Loan

The Lending People - Personal Loan


6.99 % p.a.


  • Secured and unsecured loans
  • 100% online
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The Lending People - Personal Loan

Apply today to get a decision within 60 seconds for a secured or unsecured loan up to $75,000.

  • Interest rate from: 6.99%
  • Min loan amount: $2,000
  • Loan term: 1 to 7 years
  • Fees: Broker fee of $250 to $995 depending on size and type of loan. Other fees vary with lender.
  • Eligibility: Be 18+, an NZ citizen or permanent resident, employed and earning at least $500 per week.
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Compare long term personal loans

Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Establishment Fee
The Lending People Personal Loan
6.99% - 26.99%
1 to 7 years
$0 - $10 depending on lender
$50 - $695 depending on lender
Eligibility: Be 18+, an NZ citizen or permanent resident, in employment and earning at least $500 per week.
Secured and unsecured loans of up to $75,000 from a variety of reputable lenders.
LoanSpot Unsecured Personal Loan
8.95% - 27.95%
12 - 60 months
$0 - $10 depending on lender
$195 - $995 depending on lender
Eligibility: Must be 18+, be an NZ citizen/permanent resident, and have an income of least $400 per week.
Unsecured personal loans from $3,000.
Better® Secured Personal Loan
12-60 months
$0 - $10 depending on lender
$195 - $695, depending on the lender
Eligibility: Must be 18+, be an NZ citizen/permanent resident, and have an income of least $400 per week.
Secured personal loans from $3,000.
MTF Finance Secured Personal Loan
8.45% - 20.45%
3 - 60 months
Eligibility: Must be 18+, be an NZ citizen, resident or have a work visa, and have a regular source of income.
Secured personal loans from $2,000.
Harmoney Unsecured Personal Loan
6.99% - 24.69%
36 to 60 months
$200-$450 depending on loan size
Eligibility: Be a NZ resident/citizen and have a good credit score.
Apply for an unsecured personal loan up to $50,000 with no early repayment fees.
Nobilo Finance Secured Personal Loan
6.35% - 24.95%
6 - 60 months
$395 - $525
Eligibility: Must have an asset that can be used as security on the loan. Must be 18+ (18-20 must have a guarantor), be an NZ citizen, resident or have a work visa, and earn at least $500 per week.
Secured personal loans from $5,000.
Pioneer Finance Secured Personal Loan
11.95% - 27.95%
Up to 7 years
$270 - $780 depending on size and security
Eligibility: Be 18+ (may need a guarantor); be a NZ citizen, resident or have a relevant work visa; have a regular source of income
Secured personal loans from $1,000 - $100,000.
Nectar Unsecured Personal Loan
8.95% - 29.95%
6 months to 4 years
Eligibility: Must be 18+, an NZ citizen or permanent resident, and have an income of $350 per week or more (after tax).
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online.
Lending Crowd Secured Personal Loan
3 or 5 years
$250-$1,450 depending on the amount borrowed
Eligibility: Be an 18+ NZ permanent resident, have a good credit history and collateral/security.
A secured personal loan from $2,000 to $200,000 with repayment instalment options.

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Which is better: long term loans or short term loans?

Ultimately, a shorter loan term is better. Your repayments may be higher with a short-term personal loan but you will pay less interest overall.

For example, a $20,000 loan repaid over four years, at a rate of 12.5% p.a., will see you repay $532 each month and pay $5,517 in interest over the course of the loan. If that term is extended to seven years, you will repay $358 per month, but the interest you pay essentially doubles to $10,108 over the life of the loan.

You will also need to factor in any applicable ongoing account fees that will make your total loan cost even higher.

How to compare long term personal loans

  • What is the interest rate of the loan? This defines what your repayments are over the course of the loan and it is important to take this into account. Use a repayment calculator to determine whether you can afford the repayments.
  • Is the loan secured or unsecured? Secured loans require you to provide collateral, and tend to attract lower interest rates in comparison to unsecured loans. If you’re buying a car, the car can serve as collateral. You can also use an asset you already own, such as your current vehicle, boat or equity in your home.
  • What is the loan amount you’ll be borrowing? How much you can borrow depends on various factors like what the loan is for, your ability to provide suitable security, credit history, income and monthly expenditure.
  • Do you have multiple repayment options? Repayment flexibility comes in the form of being able to choose between weekly, fortnightly, and monthly repayments. You should also check if you can make extra repayments when you want and if there is an early repayment penalty fee.
  • What are the fees and charges on the loan? Besides interest charges, there are fees to take into considerations such as an establishment fee, monthly account maintenance fees and direct debit fees. You can find out what fees are applicable to your loan on the individual lender’s site.
  • Do you have a range of loan terms available? As the name suggests, long-term personal loans usually take 5-7 years to pay off.

The good and not-so-good

The good

  • Lower repayments. A loan with a longer term means lower repayments, giving you more cash flow throughout the loan term.
  • You could hack the loan. By choosing a longer loan term and making additional repayments when you have extra funds, you can pay back the loan sooner to save on interest costs.
  • You could use the finance for a huge expense. Long term personal loans allow you to finance more expensive purchases such as cars, boats or weddings. You can also use a larger loan to consolidate debt.


  • You will pay more in interest. A longer loan term will see you pay more interest over the course of the loan. This could be hundreds or thousands of dollars depending on the size of the loan amount.
  • Keep you in debt longer. Having a longer repayment period means it takes far longer to repay your debt. If you apply for another loan or credit card before it’s paid off, the debt will show on your credit report.
  • Tendency to incur another debt. With lower repayments, you may be inclined to apply for other sources of credit.

Things to avoid with long term personal loans

  • Excessive debt. While taking out a long-term personal loan may seem like a good idea at the time, it can leave you in debt that you find difficult to repay. Make a repayment plan ahead of time and be sure to account for unexpected expenses in your budget.
  • Fees and charges. Make sure you go through the fine print and find out exactly what you have to pay regarding fees. These can come in the form of application fees, insurance costs, arrangement fees, early repayment fees, settlement charges, and late charges.
  • Tendency to splurge. Long-term personal loans usually set a minimum loan amount, so you can receive more money than you need. You may then be tempted to use it all and be in more debt than you anticipated.

Case study

Personal loan #1Personal loan #2
Interest rate12.99%12.99%
Loan amount$40,000$40,000
Loan term4 years7 years
Total interest$11,499$21,107
Difference+ $9,608

How to apply for long term personal loans

Applying for a long term personal loans is straightforward. Go through the various loan providers on this page and once you find a suitable product, click on it to go to their website. As part of the application process, lenders require you to meet some basic eligibility criteria, which usually include you being a New Zealand citizen or resident, having a regular income and being over the age of 18.

You will also be asked to provide details about your employment and your earnings, plus provide photo ID and proof of address. If you want to take out a secured loan you have to provide documents to prove ownership of the collateral you use to secure the loan.

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