If you are aware of the Indian loan market and have taken loans in the past, you must have heard about personal loans. In most cases, personal loans are for short-term borrowing. Now, a new thing called long-term personal loans has been introduced in the market. In this blog, we will try to find out some of the essential information about this loan option.
After learning about them all, we are sure that you will start choosing long-term personal loan options to fulfill your dreams. Credit Card DSA agents are also trying to offer their potential customers to fulfill their demands. Keep reading to learn more.
In some cases, short-term loans are not effective anymore. You can take an example of the medical bills nowadays. The amount is huge and difficult for any person to settle in just a few months. Imagine having a long-term loan option here in your rescue.
What is a Long-Term Personal Loan?
Similar to its name, these loans are personal in nature, but the tenure is more than usual personal loans. In some cases, you can get a loan for a decade or more, depending on the amount you are receiving. The money you will get can be used for education, medication, doing business, or anything else.
You can choose the tenure depending on your need. It is in your hands to choose the tenure and the principal amount you need. The bank will look into the matter to decide the interest rate. Negotiations with the bank can get you better offers. Look for a professional who can help you with that.
Difference from Normal Personal Loan
Tenure is the key difference between a normal personal loan and a long-term personal loan. When you have a normal personal loan, the amount you receive is less, and you won’t have much time to repay the loan. Long-term loans are connected with large amounts of money. The time you will have is much more than conventional. Your monthly payment will be decided by calculating the interest on the principal.
Reasons that Make These Loan Options Attractive
Let’s have a look at some of the benefits you can have for choosing a long-term personal loan-
- You Can Finally Get a Large Amount as A Loan
In special cases, the amount of money is going to be a major factor. Education and medicine are some of the areas in which we need huge amounts of money. Most personal loans are unsecured in nature. That’s why banks can’t offer big money to the borrowers. In long-term loan options, they check all the details before approving a loan.
- Interest Rates Are Not Out of Your Reach
After consulting with a DSA channel partner, we conducted a comparison between popular loans and their interest rates. It is found that the interest rate for long-term loans is not as high as for conventional personal loans. It is a flexible thing that the bank decides depending on several aspects.
- Tax Rebate
Are you looking for a tax rebate while having a loan in India? Long-term personal loan options can be the best option for you. Long-term personal loans are like home loans that you can show on your tax return. As there is a tax claim facility for this loan option, many Indians prefer to have this loan.
Apart from the regular tax claim, you can also look for additional claims under section 24(B) of the IT Act. To understand these things, you should consult with a tax expert.
- Easy Repayment Methods
Repayment is not going to be difficult for long-term personal loans. Like any other long-term loan option, you have to pay on a monthly basis. You will have to pay the EMI until the settlement is complete.
There are many more benefits as well. Unless you have a personal loan yourself, you can’t get a complete idea.
Who is Eligible for These Loan Options?
Those who want to apply for long-term personal loans need to be eligible-
- The person looking for the loan must be an Indian citizen and over the legal age.
- He/she must have a permanent income source.
- The credit score is going to be an important factor in getting the loan.
If you have all these aspects, you can easily apply and get approval.
