{"id":12097,"date":"2026-08-14T18:02:51","date_gmt":"2026-08-14T12:32:51","guid":{"rendered":"https:\/\/www.fatakpay.com\/blog\/?p=12097"},"modified":"2026-08-14T18:02:52","modified_gmt":"2026-08-14T12:32:52","slug":"what-are-long-term-loans","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/","title":{"rendered":"What are Long-Term Loans? Things You Need to Know\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">To meet certain financial achievements, large sums of money are\u00a0required, which may not be possible solely through savings. This can be done whether you are buying a house, getting a higher education, or growing your business. Hence, it is important to know\u00a0what\u00a0are long-term loans\u00a0and how they work before making a financial move.\u00a0\u00a0<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#What_is_a_Long-Term_Loan\" >What is a Long-Term Loan?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#Benefits_of_Long-Term_Loans\" >Benefits of Long-Term Loans&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#Factors_That_Affect_Long-Term_Loan_Approval_and_Tenure\" >Factors That Affect Long-Term Loan Approval and Tenure&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#EMI_vs_Total_Interest_The_Tenure_Trade-off\" >EMI vs Total Interest: The Tenure Trade-off&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#What_is_FOIR_and_Why_Does_It_Matter_for_Approval\" >What is FOIR and Why Does It Matter for Approval?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#Tips_to_Manage_a_Long-Term_Loan_Well\" >Tips to Manage a Long-Term Loan Well&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#FAQs\" >FAQs&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#What_is_considered_a_long-term_loan_in_India\" >What is considered a long-term loan in India?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#Does_a_longer_tenure_always_mean_a_lower_EMI\" >Does a longer tenure always mean a lower EMI?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#What_is_FOIR_and_how_is_it_calculated\" >What is FOIR and how is it calculated?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#Can_I_prepay_a_long-term_loan_without_penalty\" >Can I prepay a long-term loan without&nbsp;penalty?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#Is_a_long-term_personal_loan_secured_or_unsecured\" >Is a long-term personal loan secured or unsecured?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/#What_is_the_maximum_tenure_for_a_personal_loan\" >What is the maximum tenure for a personal loan?&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Long-Term_Loan\"><\/span><strong>What is a Long-Term Loan?<\/strong>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The core of\u00a0long-term loan meaning\u00a0starts with understanding the duration of repayment. Long term credit facility refers to a borrowing scheme where the duration of repayment exceeds more than three to five years up to 20 or 30 years based on the type of assets. As opposed to short-term credits that are used for working capital purposes or to ease immediate financial crunch, the loans give large sums of capital that can be repaid through installment payments. The typical\u00a0types of long-term loan\u00a0schemes include mortgage loans, educational loans, and long-term business growth loans.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Long-Term_Loans\"><\/span><strong>Benefits of Long-Term Loans<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The most important&nbsp;<strong>benefits of long-term loan&nbsp;<\/strong>products include increased financial flexibility and reduced costs.&nbsp;Since a larger principal is split into smaller portions over an extended period of time, the monthly payments become much easier for borrowers to make.&nbsp;Such easy<strong>&nbsp;<\/strong><a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-emi\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>EMI<\/strong><\/a>&nbsp;structures avoid putting too much pressure on monthly cash flow, which means that a person is able to manage their finances much better. Long-term financing enables people to&nbsp;purchase&nbsp;expensive assets that&nbsp;appreciate&nbsp;in value, such as property, much earlier in life than when using only savings.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_That_Affect_Long-Term_Loan_Approval_and_Tenure\"><\/span><strong>Factors That Affect Long-Term Loan Approval and Tenure<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The ability to receive a long-term loan is strongly associated with the borrower\u2019s level of risk and discipline. The following important parameters are considered by the lender when issuing high-value long-term loans:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Credit Score &amp; Credit History:<\/strong>\u00a0Having a good credit score (usually more than 750)\u00a0indicates\u00a0creditworthiness and\u00a0timely\u00a0payment of debt, which also affects interest rates and chances for loan approval.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Stable Income &amp;\u00a0<\/strong><strong>Job\/Business:<\/strong><strong>\u00a0<\/strong>Stable income and job\/business\u00a0indicate\u00a0stable ability to pay back the loan.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u00a0<strong>Age and Number of Years Left to Work<\/strong>: Applicants who are younger usually have a maximum limit of tenure on the loan, while older people may have lower limits.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Debt:<\/strong>\u00a0Debt ratio significantly affects the value of the loan.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EMI_vs_Total_Interest_The_Tenure_Trade-off\"><\/span><strong>EMI vs Total Interest: The Tenure Trade-off<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Selection&nbsp;of tenure is a fine balancing act involving instant cash flow and total borrowing&nbsp;expense. If you select a larger tenure, it&nbsp;considerably decreases&nbsp;your monthly EMI and makes your installments easy to bear without putting a strain on your budget. But there is a definite trade-off involved in it; the total interest paid during the tenure will increase dramatically. On the other hand, choosing a shorter tenure will mean higher monthly commitments but&nbsp;greatly lower&nbsp;total interest&nbsp;expense.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_FOIR_and_Why_Does_It_Matter_for_Approval\"><\/span><strong>What is FOIR and Why Does It Matter for Approval?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before sanctioning a long-term loan, banks require an insight into the borrower\u2019s capability to repay the borrowed money. The main parameter that plays a key role in the entire process is FOIR or Fixed Obligation to Income Ratio. So,&nbsp;<a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-foir\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>what is FOIR<\/strong><\/a>? It simply means \u201cthe percentage of the gross monthly income of the applicant that is used towards paying fixed monthly debts.\u201d Financial organizations prefer that applicants have FOIR lower than 40-50%. Though choosing a longer period improves chances for approval, it cannot save the situation in case of too high liabilities.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tips_to_Manage_a_Long-Term_Loan_Well\"><\/span><strong>Tips to Manage a Long-Term Loan Well<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Auto-Debit Arrangements:<\/strong>\u00a0Set up automatic debiting of payments so that there is no risk of missing payments and paying penalty charges that may harm one&#8217;s credit score.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Prepay Through Windfall Payments:<\/strong>\u00a0Utilize\u00a0periodic windfalls such as performance bonus, tax return, or asset sale to partially pay back the principal amount to reduce interest payments.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Have an Emergency Cushion:<\/strong>\u00a0It\u00a0is recommended to have enough funds to pay off three to six months&#8217; worth of payments from the loan in case of any sudden change in employment status.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Be Aware of Benchmark Rates:<\/strong>\u00a0Stay informed about the movements in benchmark interest rates to refinance the loan at lower interest rates.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A&nbsp;<a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-a-term-loan\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>term loan,<\/strong><\/a>&nbsp;especially for a longer&nbsp;tenure&nbsp;provides great financial power to invest in assets worth large sums of money without having to worry about heavy monthly payments. Having the ability to&nbsp;comprehend&nbsp;what a long-term loan is, assessing the balance between the length of the term and the amount of interest and managing the debt-to-income ratios can help one borrow comfortably.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs&nbsp;<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_considered_a_long-term_loan_in_India\"><\/span><strong>What is considered a long-term loan in India?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In India, loans that have a tenure above 3 to 5 years are usually classified as long term loans. Loan products such as home loans (up to 30 years) and high value loan products would come under this category.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_a_longer_tenure_always_mean_a_lower_EMI\"><\/span><strong>Does a longer tenure always mean a lower EMI?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Sure, when the repayment of the same principal is done over an extended period of months, it leads to a reduced monthly installment. Nonetheless, it increases the total interest cost over the entire loan period.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_FOIR_and_how_is_it_calculated\"><\/span><strong>What is FOIR and how is it calculated?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The term FOIR refers to the Fixed Obligation to Income Ratio. The formula for calculating the same is by dividing your monthly debt obligation by your gross monthly income.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_I_prepay_a_long-term_loan_without_penalty\"><\/span><strong>Can I prepay a long-term loan without&nbsp;penalty?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For all the loans provided on a floating interest rate basis, there is no prepayment penalty as per RBI guidelines for the loan taken by individuals. In case of fixed interest rate loans or corporate loans, there could be some prepayment penalty.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_a_long-term_personal_loan_secured_or_unsecured\"><\/span><strong>Is a long-term personal loan secured or unsecured?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.fatakpay.com\/personal-loan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Personal loan<\/strong><\/a>&nbsp;types are&nbsp;generally unsecured&nbsp;without any collateral requirements. However, as they are unsecured, the tenure periods for personal loans are always lower compared to those of secured loans such as housing loans.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_maximum_tenure_for_a_personal_loan\"><\/span><strong>What is the maximum tenure for a personal loan?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Many of the banks in India provide an unsecured personal loan with a tenure ranging from 5 to 7 years. This depends on the individual&#8217;s profile.&nbsp;<\/p>\n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\/\", \n\n  \"@type\": \"BreadcrumbList\", \n\n  \"itemListElement\": [{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 1, \n\n    \"name\": \"Home\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 2, \n\n    \"name\": \"Blog\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 3, \n\n    \"name\": \"Personal Loan\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 4, \n\n    \"name\": \"What are Long-Term Loans? Things You Need to Know\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/\" \n\n  }] \n\n} \n\n<\/script> \n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\", \n\n  \"@type\": \"BlogPosting\", \n\n  \"mainEntityOfPage\": { \n\n    \"@type\": \"WebPage\", \n\n    \"@id\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-are-long-term-loans\/\" \n\n  }, \n\n  \"headline\": \"What Are Long-Term Loans? Meaning, Types & Benefits\", \n\n  \"description\": \"Learn what long-term loans are, their types, and key benefits. Understand how tenure affects your EMI, eligibility factors like credit score, and total interest cost.\", \n\n  \"image\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\", \n\n  \"author\": { \n\n    \"@type\": \"Organization\", \n\n    \"name\": \"FatakPay\", \n\n    \"url\": \"https:\/\/www.fatakpay.com\" \n\n  }, \n\n  \"publisher\": { \n\n    \"@type\": \"Organization\", \n\n    \"name\": \"FatakPay\", \n\n    \"logo\": { \n\n      \"@type\": \"ImageObject\", \n\n      \"url\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\" \n\n    } \n\n  }, \n\n  \"datePublished\": \"2026-08-14\", \n\n  \"dateModified\": \"2026-08-14\" \n\n} \n\n<\/script> \n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\", \n\n  \"@type\": \"FAQPage\", \n\n  \"mainEntity\": [{ \n\n    \"@type\": \"Question\", \n\n    \"name\": \"What is considered a long-term loan in India?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"In India, loans that have a tenure above 3 to 5 years are usually classified as long term loans. Loan products such as home loans (up to 30 years) and high value loan products would come under this category.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Does a longer tenure always mean a lower EMI?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"Sure, when the repayment of the same principal is done over an extended period of months, it leads to a reduced monthly installment. Nonetheless, it increases the total interest cost over the entire loan period.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"What is FOIR and how is it calculated?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"The term FOIR refers to the Fixed Obligation to Income Ratio. The formula for calculating the same is by dividing your monthly debt obligation by your gross monthly income.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Can I prepay a long-term loan without penalty?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"For all the loans provided on a floating interest rate basis, there is no prepayment penalty as per RBI guidelines for the loan taken by individuals. In case of fixed interest rate loans or corporate loans, there could be some prepayment penalty.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Is a long-term personal loan secured or unsecured?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"Personal loan types are generally unsecured without any collateral requirements. However, as they are unsecured, the tenure periods for personal loans are always lower compared to those of secured loans such as housing loans.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"What is the maximum tenure for a personal loan?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"Many of the banks in India provide an unsecured personal loan with a tenure ranging from 5 to 7 years. This depends on the individual's profile.\" \n\n    } \n\n  }] \n\n} \n\n<\/script> \n","protected":false},"excerpt":{"rendered":"<p>To meet certain financial achievements, large sums of money are\u00a0required, which may not be possible solely through savings. This can be done whether you are buying a house, getting a higher education, or growing your business. Hence, it is important to know\u00a0what\u00a0are long-term loans\u00a0and how they work before making a financial move.\u00a0\u00a0 What is a<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[],"class_list":["post-12097","post","type-post","status-publish","format-standard","category-personal-loan"],"_links":{"self":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/12097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/comments?post=12097"}],"version-history":[{"count":1,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/12097\/revisions"}],"predecessor-version":[{"id":12098,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/12097\/revisions\/12098"}],"wp:attachment":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media?parent=12097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/categories?post=12097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/tags?post=12097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}