Long-term loans refer to those loans that have a longer tenure or repayment period. The repayment period of a loan can range from a year to 30 years. Usually, loans that are paid off in a period of more than 3 years are considered as long-term loans. Most long-term loans are designed in such a way that they can cater to borrowers belonging to different economic segments of the society. They help in resolving diverse financial needs and can be easily repaid in small instalments or EMIs without causing any trouble to the borrower. Such loans allow people to enjoy maximum benefits from schemes offered by various public and private sector banks.
Such loans are used to cover various financial needs related to personal requirements, business, wedding, home renovation, education, vacation, purchase of a vehicle, or any other type of personal or commercial purpose. Long-term loans are also the most popular forms of credit in the financial industry.