Long Term Personal Loans

Being able to space out your repayments is critical for many borrowers, so you can compare long personal loan terms with Savvy.

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, updated on October 4th, 2023       

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How do long-term personal loans work?

Long-term personal loans are regular personal loans with loan terms of between five and seven years. They’re no different from other standard personal loans in terms of the way that they’re structured: you can borrow an amount between up to $50,000 and repay it with interest over a set term.

These loans are more common for, and useful to, borrowers who are looking to take out a larger loan (closer to $75,000 than $2,000), as they benefit more from a lengthier period of repayment than smaller amounts do.  Smaller loans of less than $10,000 are more likely to be able to be paid over a term of less than five years, so it makes more sense to pay them over a shorter term and save money.

However, it's important to note that the length of your loan term will correlate to your borrowing profile. Because longer-term loans are considered a greater risk than short-term ones (as there is, in theory, an increased likelihood of something occurring over your term which affects your ability to repay it), they're generally harder to get approval for. If you have a strong credit score and are earning a stable, comfortable income, you're more likely to be approved for a long-term loan. 

Types of personal loan

Why compare personal loans through Savvy?

How do I compare between long-term personal loans?

Interest rates

Getting the right interest rate is particularly important on a long-term personal loan, as the difference between a good and bad one is likely to be thousands of dollars. Ensure that the interest rate listed on the top personal loan offers is front of mind for you at the comparison stage.


While interest is important, fees are just as crucial to try to avoid. These can set you back if you’re charged an expensive upfront fee, such as an application fee of up to $600, or can accumulate over time with monthly fees of $10 to $15. Ensure that your loan waives or reduces as many fees as possible to save you money.

Minimum and maximum loan amount

If you want a long-term loan, you’re probably looking for a larger loan sum. As such, you should compare what different lenders are willing to approve you for. However, if you do want a loan on the smaller side, it’s worth checking what the minimum loan requirements are for each lender.

Loan term

Not all loan terms are the same between lenders; some will cap their loans at seven years, while others may opt for five. Your preference regarding the period over which you wish to repay the loan will dictate which lenders are and aren’t suitable for you.

The benefits of long-term personal loans

Frequently asked long-term personal loan questions

Is a short-term personal loan better for me than a long-term one?

It can be – however, this depends on your needs. A long-term loan may be your only option if you need a large sum of money, but if not, a shorter loan term is recommended. This is because you’ll pay less interest and fees on a short loan term than a long one, which would be worth the increased repayments for many.

How do I apply for a long-term personal loan?

You can apply with a lender online or in person for your long-term personal loan, depending on their facilities. The best place to find lenders right for you is with Savvy, as we compare the top offers so you can choose one that suits your needs. Once you’ve chosen your lender, you can fill out any forms provided by them, after which they’ll ask for further identifying and financial documentation. From there, the lender will make their decision on whether to approve your application.

Are secured personal loans better for longer terms?

Yes – any chance that you can take to reduce your interest and fees is important to consider for your long-term personal loan. If you can’t supply security, or prefer not to, unsecured personal loans are still a viable choice for you and your financial needs, particularly if you need your application processed quickly.

Will a bad credit score stop me from getting a long-term personal loan?

Most likely, yes – specialist online lenders are able to provide bad credit personal loans to customers who don’t fit the requirements for a bank loan, but a longer loan term increases the risk it poses to them. As such, a bad credit borrower is not likely to be approved for a loan over as long a term as a good credit customer.

Can I still pay off my long-term personal loan early?

Yes – lenders welcome loans being repaid prior to their due date. Doing this can help you save a significant amount in fees and interest which you would’ve paid had you stuck to the minimum repayment requirements. Some lenders may charge you a fee for doing so, however, so ensure that you’re not losing out by paying off your loan early. 

Why is the comparison rate important on my long-term personal loan?

Comparison rates are reflective of the combined cost of interest and fees. As such, it serves as a truer reflection of what you’ll end up paying on top of your principal repayments. It’s advised that you look to this number above others (such as interest on its own) when comparing between the best lenders on the market.

Helpful personal loan guides

Still looking for the right personal loan?

Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.