A loan is simply financial assistance offered to someone when in need. This can either be for personal or business use. A long-term loan can be offered by the bank or a licensed moneylender. The money is expected to be paid back with interest for a specific time which can be termed the repayment period.

Loans come in handy when one urgently requires money to compensate for something. It might be hospital bills, school fees, debt consolidation, business boost, or even house rent.

In Singapore, there are various moneylender agencies where you can get long-term loans. An example of a reputable moneylender in Singapore is Oasis Credit Services Pte Ltd.

How to apply for a long term loan

There are various steps one should follow to successfully apply for a loan. You can apply online, go to the bank, or moneylenders physically.

1.     Visit the lender’s physical shop or online site

If the moneylender offers two options of applying that are physical or online, it is up to you! When you do it physically, you could also be advised on how to deal with the loan and repayment plan. If their physical location is far, you could do it online too.

2.     Having all the required items

It is quite obvious that borrowing a loan from a moneylender or bank is a very official matter. There are specific requirements that one needs to have to qualify to get a long-term loan. In Singapore, the following are the requirements:

  • An original and printed copy of one’s payslips of the 3 latest months
  • Income tax statements
  • NRIC or identity card
  • SPF statements
  • Original PUB Bill or any other document that will show one’s residential address
  • A record showing your credit score and history
  • Debt-to-income ratio
  • Employer’s information
  • A filled guarantor’s form

If you are doing it online, scanning the documents would be the best way to upload them. Also, consider the document’s clarity before submitting the documents.

3.     Acquiring the money

If you have all the required documents, have trustworthy credit, then your application will be approved. As the applicant, you will now get the money. Additionally, it mostly happens on the same day of applying.

Characteristics of long term loans

  1. Lower fixed interest rates
  2. The repayment period matures after a year
  3. Collateral has to be provided to get the loan
  4. A guarantor is required
  5. The total money to be paid back is higher

Types of long term loans

1.     Education loans

These are loans specifically meant to cater to an individual’s educational needs. They are mostly applied for college tuition fees. In most cases, these loans are paid back once the individual is done with college and gets a job.

2.     Mortgages loans

Home loans are most suitable to be on long-term loans. These home loans give customers the option of either a fixed rate of interest or float rate of interest. The collateral for his loan has to be submitted to the bank and a guarantor is also supposed to sign the loan application.

3.     Motor loans

Car loans tend to be higher amounts compared to home loans. A car loan may have a repayment period of up to 7 years.  This loan is most suitable when buying a new car, servicing, or pimping a car that requires a large sum of money.


4.     Personal loans

When it comes to personal loans, the repayment period is up to 3 years. However, the interest rate is quite high compared to other long-term loans. This is because a personal long-term loan is unsecured.

5.     Debentures

This is a debt instrument used by companies to acquire financial assistance at a fixed interest rate.

When to consider getting a long term loan

There are some factors that you need to consider before acquiring a long-term loan.

1.     Your financial position

As an individual you should analyze your financial position and whether you will manage to pay the loan on time. Apart from just repaying the loan, you should also try to check whether you will sustain yourself and your family comfortably.

There is no need to borrow a large sum of money and end up overstretching while repaying. You should at least be in a good state to repay the loan since it has a lower monthly payment and interest.

2.     When you want to borrow a large sum of money

Long-term loans are mostly known to be loans of large amounts. It is quite favorable since you have a lot of time to repay.

The only challenge is that you will be repaying for the same loan for quite a long period. Note that the repayment period depends on your credit history and the lender’s requirements.

3.     Building creditworthiness

This is where you want to build your trust in the bank or moneylender. As a business person having a good creditworthiness quality is very important for future loaning. Fortunately, a long-term loan gives one ample time to repay the money.

4.     Lower monthly payments

The logic in this kind of loan is that the longer the repaying period the less the monthly payments. This is quite favorable to many individuals.

The deal looks quite promising but beware that the longer the repaying period the more you are likely to pay a greater amount overall. This is due to the interest you will be paying throughout the year.


The advantage of acquiring a loan from a moneylender to a bank is that it has a fast approval time. Therefore, you will get the money on the same day as applying. You should also check out the various moneylenders available and also check out customer reviews. This exercise is very important since there are some loan sharks within.

These loan sharks sell their loans at very high interests and they may end up hurting you and your family once you fail to repay.  A long-term loan is considered to run for three to thirty years. A short-term loan runs for 6 to 18 months.

If you are not sure about some matters regarding long-term loans you should go to the moneylender of your choice and get advice.