A loan provides financial assistance to someone who needs personal or business use. However, banks or licensed money lenders can offer a long-term loan. This type of loan is paid-off over an extended period greater than 3 years. The period can range between 3-30 years.

The money borrowed is expected to be paid back in several installments for a specific time and amount. In the urgency of money for something, loans help to compensate it. This might be school fees, business boosts hospital bills, debt consolidation, school fees, or even house rent.

In Singapore, for you to get a long-term loan various moneylender agencies offer the loans. Oasis Credit Services Pte Ltd is an example of a reputable moneylender in Singapore.

What is a long-term loan?

A long-term loan is a kind that is paid off over an extended period. This included car loans, home loans, and some personal loans. The long term loans can be for different functions.

You just need to be careful when consulting a moneylender so that they can give you the full amount. Also, try not to take out a big long-term loan because it can take you a while before you finally pay it off.

Most money lenders allow the pre-payment option so that as a customer you won’t have to pay off the loans earlier than the stipulated timeframes. In most cases, you get long-term loans based on your income. Therefore, you need to have a good source of income or collateral.

Features of a long term loan

Some examples of long-term loans include education loans, mortgage loans, home loans, car loans, some personal loans. In most cases, you might need to get these loans to finance a big milestone. Well, there are no specific long-term loan features because they are all similar but they differ in some cases.

1)     Higher amount

If you are opting for a long-term loan be assured that you will be given a higher amount. These are as compared to short-term loans like personal loans. Hence, only opt for long-term loans if you want to get finances for something big or a big milestone. Don’t take a high amount of what you want to use in different ways. Use it for something valuable. Also, try to consult the personnel to ensure that you have all the terms in place.

2)     Low-interest rates

Another benefit is that it features low-interest rates. When it comes to long terms loans, you get to pay low-interest rates. However, try and be wise when acquiring these loans to prevent you from being strained when paying off the loans. On the other hand, short-term loans tend to have a higher interest rate because of the timeframe.

3)     Collaterals

In most cases, if you want a long-term loan, you will need to submit collateral. This is because it tends to be much higher than other types of loans. Therefore, you need to provide something that can cater to your loan in case you are unable to pay. However, the collateral is only taken when you surpass the due date and aren’t showing any signs of payment.

In rare cases are the collaterals taken from you. However, in some house or car loans, the property may be taken away from you for a while till the payment is made.

4)     Installments

In long-term loans, you mostly pay in installments. This is because it is a large loan and needs to be paid in flexible terms. The monthly payment installments are mainly based on principal and interest. Hence, so that by the end of the time frame you are done paying.

Also, when acquiring a loan, try to talk with the finance manager to know how best to take up the long-term loan.

When to consider having a long term loan

Before an individual decides to acquire a long term loan, the following factors should be considered:

1)     To cater to some financial needs

Always analyze your financial position as an individual and check if you can manage to pay the loan on time. Furthermore, apart from loan repayment, you need to check if you can sustain yourself plus the family comfortably.

It won’t make sense if you borrow a huge amount of money and fail to repay or overstretch yourself. It’s advisable to be in a good position when repaying the loans since the monthly payment and interest are lower.

2)     If you want a large sum of money.

Long-term loans feature large amounts. It’s a favorable type of loan since you have more time to repay. The only limitation you will face with this type of loan is that the repayment period is longer.

Note that the repayment period of your loan depends on your lender’s requirements and credit history.

3)     Building creditworthiness

For you to build your trust from lenders such as banks or moneylenders your creditworthiness will determine. As a business individual, it’s very important to have good creditworthiness for acquiring future loans. The good thing with a long-term loan is that it gives someone ample time to repay the loan.

4)     Lower monthly payments.

Long-term loan operates in the logic of the longer the repayment period the lower the monthly payments. This is reasonable for many individuals who have acquired the loan.

It looks like a great deal right, but be aware that the longer the repayment period the more likely you will pay a greater total amount. This is because of the interest accumulated throughout the years.


When in need to apply for a long-term loan, try to check out the customer reviews of the available moneylenders.  It’s important to do your due diligence when applying for the loan since there is an existence of some loan sharks. It’s advisable to avoid loan sharks since their loans tend to have high interest and may end up hurting you when you fail to repay.