Long term loans – borrow money and divide your costs over months or years. Apply with Monzi from $300 to $10,000 today. We could match you with a lender in just 60 minutes. It’s fast. It’s easy. When you need quick cash to address an urgent expense, Monzi could be a great place to start. Repayment terms from 12 to 24 months. Apply now.
Please note, specific ideas and products presented in this article may not be on offer by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.
What are long term loans?
A term loan is a loan given to you that you must repay over a set period via small regular repayments. Long term loans are therefore term loans that are repaid over a long period. Depending on the loan you seek, you may have different options available regarding when you must repay.
For example, a home loan is a long term loan and your minimum repayment period may be five years. Whilst this sounds like a long time compared to the maximum potential loan term of, for example, 25 years, five is relatively tame. A longer loan term may mean smaller monthly repayments, however, keep in mind the interest rate. The longer you hold a loan, the more opportunity you are giving the interest to build. This means that you may end up paying more in the long term than you initially intended to.
Through Monzi, you can apply for long term personal loans with repayment terms of up to 24 months. That means, you can borrow amounts ranging from $300 to $10,000 and make repayments over the following two years. As a result, you can access the cash you need now and divide the costs over a manageable period.
Long term loans for bad credit
It is entirely possible to obtain certain loans with bad credit. However, long term loans may not be as available to you as short term loans are. This is because the lenders that may be willing to lend to you will perceive you as a risk. As you are a risk, you are more likely to receive approval for a small loan. Small loans often come with a shorter repayment period. However, long term loans aren’t entirely off the table for you.
If you apply through Monzi, our lenders will do their best to work with you to find a satisfying option for your needs. In short, if you are paired with a lender, they will conduct an assessment on your application to determine if a loan would be suitable for you. If you show that you are earning a consistent income and have your expenses under control, you may be offered a bad credit loan today. However, approval is not guaranteed and is at your lender’s discretion.
How much can you borrow?
When applying for long term loans, the amount you can borrow will vary based on several factors. The first is the type of loan you are applying for. You will have access to a much more prominent figure if you apply for a home loan than if you were applying for a personal loan. In addition to this, lenders may consider your credit score and current budget. If you are earning a high income, then your borrowing power will likely be much higher than a low-income earner.
Through Monzi’s lender-finder service, you may be able to borrow up to a $10,000 loan. These large secured loans may help you address a major expense when your budget won’t quite stretch. Best of all, Monzi works with a network of helpful and understanding lenders. Not only can you apply from $300 to $10,000, but bad credit and Centrelink applicants may be considered.
That said, remember that approval is not certain. If you are matched with a lender, they will conduct an assessment to determine your outcome.
Small long term loans
It is uncommon to find a small loan with long loan terms. This is because small loans are often easily repayable. If you were to borrow $300, this is far easier to repay than a $10,000 loan, and it wouldn’t make sense to have a long repayment term. Taking a long term loan for a small loan sum may mean that you end up paying more in interest than you pay in loan repayments.
This does depend on the lender, however. If you apply through Monzi, and we might match you with a lender who can help. The lenders in our network offer small, unsecured loans from $300 to $2,000. You may repay these short term loans over just 12 months. As a result, you may have your debt repaid in what feels like no time.
Consider the pros and cons of short term loans for small amounts before you apply. While all cash loans, including long term loans, may provide the assistance you need today, you must still consider the costs and potential consequences.
How to apply for long term loans
When it comes to getting long-term loans, if you apply through Monzi, it couldn’t be easier. Our process was designed to be super easy for you. We are 100% online, meaning if you are after long term personal loans, you can place your application from your lounge room or on the go. All you have to do is scroll up to the loan slider or hit the ‘Apply Now’ button. Choose your loan amount and your journey is underway.
From there, you just have to tell us a bit about yourself. We only need a few documents and details, then it’s over to us. We’ll do our best to match you to a lender who can help in as little as sixty minutes, and, hopefully, a lender will be in touch. It’s that easy!
If you are applying for a larger loan such as a home loan, the process is similar; however, you won’t complete the application process as quickly. Your application process may also require you to speak to a bank representative or a mortgage broker to help you with the process. This is a necessary evil if you are looking for a loan worth hundreds of thousands of dollars.
Best long term payday loans
Payday loan term payments are usually small and repaid over a short term. Monzi can’t name the best payday loans, especially as Monzi doesn’t offer payday loans. However, payday loans, like personal loans, are often small and repaid over short periods. Meaning it is unlikely that you will be able to locate a long term payday loan.
In Australia, payday lenders must lend responsibly by law; this means that they can’t lend to you if they don’t believe you can repay it. In any case, the costs of a payday loan can be high. Fees and charges may be extreme, meaning you may end up repaying a lot more than you intended to borrow. Moreover, repayment terms may be as short as a few months.
If you would like to apply for a personal loan rather than a payday loan, begin now with Monzi. We could match you with lenders offering long term personal loans up to $10,000. However, if a payday loan is what you would prefer, you may need to do your own research.
Best long term personal loans
On the other hand, you do have some options when it comes to long term personal loans. Again, it’s not for Monzi to say who is offering the best long term personal loans. However, we can let you know about what we have to offer.
Firstly, you can apply for medium secured loans from $2,100 to $4,600. You may repay these loans over a term ranging from 13 to 24 months. If you need a little more, you could apply for large loans ranging from $5,000 to $10,000. Again, you may repay these loans over 13 to 24 months. However, note that the amount and terms may depend on the individual lender.
In any case, one of the key benefits of applying with Monzi is that it is totally free. It won’t cost you a cent to submit an application and we’ll do our best to match you with a lender from our network. However, do remember that if you are offered a loan by a lender, then they will apply additional costs in the form of interest or fees.
If you are looking to compare the loans available to you, you may find a personal loan comparison tool online to make this task easier. However, if you have any questions about how Monzi works, we recommend reaching out to our friendly team, who can help answer your queries.
Do you need to secure long term loans?
Typically, you may be required to secure long term loans. As a guide, you must provide security on any loan over $2,000. If you are unable to provide this, then you’ll need to take out an unsecured loan rather than a secured loan. In other words, security is non-negotiable on certain long term longs.
In most cases, lenders will allow you to get a loan against your car, boat, caravan or motorcycle. However, certain policies and requirements may vary between lenders. In any case, you must be the registered owner of the vehicle to be able to sign it over as security.
Finally, keep in mind that security exists to protect lenders in the event that you default on your loan. If you fail to make your repayments, then they may explore repossession. As a result, before applying for a long term secured loan, consider any possible costs or consequences.
What are the advantages and disadvantages
There are several advantages and disadvantages to consider. Some of these may include:
- Lower interest rates: As you often have to provide security for the types of loans that are classed as long term loans, you may not have as high of an interest rate compared to an unsecured loan.
- Cash flow: Taking long term loans may allow you to divide your costs over a manageable period. That way, you might not have to compromise your current budget.
- Potentially smaller repayments: The longer your loan, the smaller your repayments may be. This is because you would be spreading your loan out and allowing you to repay in smaller increments.
- Higher total interest: Despite paying lower interest rates on secured long term loans, you may still pay more heightened interest in total than you would with a short term loan.
- Carrying debt for longer: In an ideal world, you want to be debt-free; the longer your loan term, the longer you will have a debt to your name, which may not benefit your credit score.
- Longer approval times: Depending on the lender you are dealing with, it may take longer to receive approval for larger loans with longer terms than it would for small, short term loans.
What are some examples?
Some examples of long term loans have already been discussed. The most obvious of these are mortgages and car loans. However, some other examples of long term loans you could encounter in your lifetime may include education loans, small business loans and personal loans.
In Australia, if you take out a loan to study at university through HECS, you will be able to keep this loan almost wholly out of sight and out of mind until you reach a certain income threshold. These higher education loans are different because, while they are long term loans, they are offered by the government and are indexed to inflation. As a result, they are much different to standard principal and interest loans.
However, small business loans are long-term loans that can be taken out either by an individual or a pre-existing company. These loans are for anything the business will need to improve performance and repayment terms can vary greatly depending on the money you borrow.
Personal loans may also be considered long term loans. This is because they may have a maximum repayment term of two years, which is not the quick turnaround of a typical small personal loan. However, in comparison to the terms offered by mortgage loans, personal loan terms are usually relatively short.
Unsecured long term loans
Long term loans that are unsecured are likely scarce; unsecured long term loans bad credit, even more so. This is because long term loans often consist of more significant borrowed amounts. Due to Australian lending regulations, companies generally requires you to secure amounts over $2,000. This will almost be unavoidable. Meaning if you are borrowing a sum that qualifies for a long term loan, you will often have to provide some form of collateral before you can be considered for approval.
If you have bad credit, it might be difficult to access long term or large loans. After all, lenders may be cautious about whether you will be able to make your repayments. However, don’t be deterred from applying for your desired amount through Monzi. If you need secured bad credit personal loans, there might still be options for you. That said, you must still meet the lender’s necessary qualifying criteria and be earning sufficient income.
Long term loans for the unemployed
Long term loans for the unemployed are also not as standard in the lending world. Before you try and apply for any loan while unemployed, consider applying for an advance Centrelink payment if applicable to avoid putting yourself into debt. Borrowing while unemployed has high risks and may do more harm than good. If you are only momentarily unemployed, however, it may still be possible to receive loan approval.
However, it is unlikely that this approval will be for a long term or large quantity loan. Monzi lenders may be able to evaluate you fairly and your situation; however, it is more likely you will obtain a small loan than any of the other loans types on offer. Suppose you are looking for some extra cash while unemployed and can prove that you have received a regular income into a personal account over the past 90 days. In that case, your lender may regard this as being enough to qualify. However, approval isn’t certain.
Same day long term loans
Depending on the type of loan and when the application is placed, it may be possible to get same-day approval for long term loans. This is very unlikely if you have applied for a business, car, or home loan. Personal loans can potentially offer you same day long term loans. Monzi and our lenders, for example, may be able to provide same-day long term loans if you apply during business hours and provide all the required documentation. We can’t make any promises, however. Processing times do vary.
It might be more likely that you receive same-day approval for small loans. This is because these loans may not require security, thereby eliminating an extra step. The process can then, therefore, be completed faster.
Short term loans vs long term loans
It may be tricky to distinguish what length your loan term should be. There is no one size fits all answer when it comes to making this decision. However, consider making your decision based on your repayment capacity. Often, borrowers think that repaying a loan in the shortest time possible is the preferred strategy. While this might work for some borrowers, this isn’t always best.
If you believe you may struggle to afford higher monthly repayments associated with a short term, it might be in your best interest to extend your loan term and shrink your monthly payments. If it is a mortgage you are concerned about, keep in mind that refinancing is always an option. You can refinance to a lower interest rate if you find a better deal. However, ensure you adjust your term as required, so you aren’t starting fresh with another 30-year period when you’ve already paid five years worth.
Long term small business loans
Long term small business loans and long term business loans for bad credit fall under the previous examples given. Loans for small businesses can be advantageous and can come as either long or short term loans. Long term small business loans can offer businesses several advantages. Namely, your business may use its assets as collateral on the loan, minimising the interest rate. A lower interest rate makes it appropriate to have a longer-term as the interest won’t be compounding as intensely as without collateral.
These types of business loans also permit borrowers to mitigate looming expenses with immediate access to cash flow. So, if your business underperforms one month, a loan to keep wages paid helps the company remain on its feet rather than going bankrupt. Other options may include lines of credit or business credit cards.
Long term boat loans
When you take a holiday, we get it; you want to ensure you’re utilising it properly. If you dream of hitting the water, whether the ocean or the lakes, you might consider taking out a boat loan to purchase your next vessel. In short, a boat loan works just like a car loan. You can buy your boat today and make repayments over the long term.
At Monzi, we don’t work with lenders offering boat loans specifically. Instead, we know many lenders who offer personal loans from $300 to $10,000. One possible use for these loans could be to help you purchase a boat. Just remember that the costs can be high. As a result, it may be best to keep a lookout for specialised marine financing.
Long term loans for pensioners
It is pretty unlikely you will receive approval for a long term loan if your only income is the pension. This is because you may not have a strong enough income to qualify for the amounts classified under Monzi’s long term loan options. However, this doesn’t mean you are ineligible for all loans.
You may be able to qualify for a small, short term loan as an alternative. Your chances of approval with one of these loans are higher as the amount is smaller and more manageable. You also won’t need to secure a small loan.
With any other type of loan, however, you may struggle to receive approval. This is because a person living solely off a pension may not meet the necessary income thresholds of a large loan. As a result, if you are a pensioner or low-income earner, it may be wise to seek alternatives. Consider additional government support that may be available or investigate the No Interest Loan Scheme. These two options may be more appropriate.
Long term loans for Centrelink customers
It may be challenging to obtain a long term loan if your sole income is granted to you by Centrelink. This is because if you are in this situation; you may lack sufficient income to afford both your regular expenses and the associated loan repayments.
If you are in this position, consider applying for a payment advance from Centrelink. If you have good credit and money management, you may successfully receive approval for a small, short term personal loan. Regular income and good budgeting skills may help you meet the criteria of one of Monzi’s lenders.
Please note that each lender has their own terms. While some lenders may offer loans to Centrelink customers, others may not.
Long term loans and Monzi
If you are looking for information about what Monzi can do for you, check out our home page. There you will find information on the costs you might expect to encounter from your lender. This includes the loan amount, terms, fees and an example of how these concepts work together.
If you are ready to apply, our process was made to be as simple as possible. Once you’ve completed your application, we will do our best to find you a lender within 60 minutes. If we’re successful, your lender should be in contact with you shortly after. Fast cash loans from $300 to $10,000 might be right there at your fingertips.
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If it’s questions you have, contact our team at email@example.com. We’ll do our best to answer any queries you may have.
Finally, to learn more, check out Moneysmart’s guide to personal loans. It may provide further information to help you determine whether a loan is right for you.