calendar, calculator and dollar bills
Timothy R
By: timothy-ronaldson
Read in 12 minutes

5 Top Long-Term Personal Loans for 2023

Long-term personal loans can be beneficial because they allow more payments thanks to the extended term. As a result, the monthly payments are lower.

While you find many personal loan companies online, not all offer good terms for most people.

Whether you’re consolidating debt, making a large purchase, or funding a major life event, long-term personal loans can give you the flexibility and peace of mind you need.

So let’s look at some more details about personal loans, focusing on some of the best long-term personal loans available.

What Is a Long-Term Loan?

A long-term loan is a loan taken out for longer than a short-term loan. Long-term loans typically have lower interest rates because the lender is taking on less risk by lending for longer.

A long-term loan usually lasts two to five years, while a short-term loan usually lasts between one and three months.

It’s important to note that because the repayment period is longer, the total interest paid on a long-term loan will be higher than on a short-term loan.

Apply For A Personal Loan!

Long-Term Personal Loan Rates

The interest rate on a long-term personal loan will generally be lower than the rate on a shorter-term loan.

This is because the lender is taking on more risk by lending money for a longer period and therefore wants to be compensated with a higher interest rate.

In addition, the interest rate on a long-term personal loan may be lower if you have a good credit score. Lenders will see you as less risk if you have a good credit history and offer you a lower interest rate.

Finally, the interest rate on a long-term personal loan may also be lower if you’re willing to put up collateral.

Examples of Long-Term Loans

For example, if you want a car loan, it would be a long-term loan because the car will pay for itself over many years.

Taking a personal loan to consolidate credit card debt is a short-term loan because it will be paid off in less than five years.

Personal loans can be a great way to help fund smaller projects around the house, a new business idea, an opportunity to invest, or simply to help get you through a challenging financial time.

How Long Are Personal Loan Terms?

There are three main types of personal loan terms.

  • Short-term loans: Typically have a repayment period of less than one year.
  • Medium-term loans: Have repayment periods of between one and five years.
  • Long-term personal loans: Usually have repayment periods of more than five years.

Many people prefer to get medium or long-term personal loans because the monthly payments are typically lower with these types of loans.

For example, if you borrow $5,000 and have to repay it in 12 months, your monthly payments would be $416—and that’s not even counting interest rates or origination fees.

But that same loan, for repaid in 24 months, would have payments of $208. Now, that’s a better offer.

This is one of the main reasons why medium and long-term personal loans are the preferred options. Those are the two that we will spotlight in this article. Keep reading to find some of the best long-term personal loan direct lenders.

How long is the average term on a personal loan?
For unsecured personal loans, the average term is somewhere between one and five years.

Best Long-Term Personal Loans and Medium-Term Loans

Here are some of the best medium and long-term personal lenders with great offerings today.

Camino Financial

Medium-term personal loans with minimum requirements

A medium-term loan with Camino Financial is a great alternative to long-term personal loans. We offer loan repayment terms of one to three years.

There are many advantages to taking out a medium-term personal loan with Camino Financial. Our solopreneur loan can help people who are seeking financial independence.

We can offer loans between $1,500 and $7,500, with a fixed APR for the life of the loan of 33% to 35%.

The best part about all our loans is they are much easier to qualify for than many other personal loans with long-term payments.

You just have to be current with your outstanding debt, have a bank account that’s been active for at least six months, and have at least $1,500 in monthly income.

We can even offer more cash at better loan terms after you make your first eight timely.

If you’re in the market for a personal loan, why not try Camino Financial?

It doesn’t matter if you need a short, medium or long term loan, online lenders are a great alternative.


Bigger long-term personal loans

SoFi is one of the newer online long-term personal loan lenders, and they’re becoming trendy because of their offerings.

Their loans start at $5,000 and top off at $40,000. They offer low-interest long-term personal loans: their estimated APR  can vary between 4.99% to 19.63%. They also provide repayment periods of between two and seven years.

You do have to have credit score of 680 to qualify for a SoFi loan, though.

Other requirements include being a permanent resident, visa holder, or U.S. citizen. You also must be employed, have enough income, or have an offer to start employment in the next 90 days.

You have to have a Social Security number to apply, too.

Marcus by Goldman Sachs

Long-term personal loans with no fees

Marcus by Goldman Sachs offers long-term personal loans with three to six years of repayment terms.

The minimum credit score requirement is around 660.

With them, you can get a loan of between $3,500 and $40,000. They offer estimated APRs of between 6.74% and 19.74% as well. They ask for proof of your income, including recent pay stubs and bank statements.

One of their benefits is that they don’t charge any loan fees (no origination, prepayment, late payment, or insufficient fund fees).

You also must have a SSN or an Individual Tax ID number to apply.


Low-interest long-term personal loans

Lightstream is another decent option for people who need personal loans with long-term payments.

They offer loan repayment terms between two to seven years to provide flexibility for people who need lower monthly payments (which makes them some of the best personal loans with longer repayment terms).

You can take out a loan of between $5,000 and $30,000 with them. Their estimated APRs are between 4.49% and 20.49%.

With Lightstream, you will need to have solid credit of 660 to qualify.

They require a credit history of several years and may also ask for evidence that you have enough money in the bank and enough income to repay the loan.

You have to have a SSN to apply, as they do not accept ITINs.

Discover Personal Loans

Best personal loans with longer repayment terms

Discover is known for its credit cards but offers long-term personal loans. They offer loan repayment terms between three and seven years.

You can borrow between $2,500 and $35,000 with them. They offer estimated APRs of between 6.99% and 24.99%.

You need a minimum credit score of 660 to be approved, though.

Most Discover Personal Loan borrowers have an average credit score of 750. This is quite high for the average borrower.

To qualify, you need to have a household income of at least $25,000 and be either a U.S. citizen or a permanent resident.

Are there any long-term personal loans for bad credit?
If you need long-term personal loans for bad credit, don’t worry, there might still be some options out there for you. Depending on your situation, Camino Financial can work with you.

Apply For A Personal Loan!

What Are the Benefits of a Long-Term Loan

There are many benefits of taking out a long-term personal loan. Some of these benefits include:

  • The interest rate on long-term loans is usually lower than on short-term loans, which can save you money over the loan.
  • You have a longer time to repay the loan to make smaller monthly payments. This can make long-term loans more affordable for some borrowers.
  • Long-term loans can help improve your credit score by showing you can handle a larger debt. This can make it easier to qualify for other loans in the future.
  • You may be able to get a tax deduction for the interest you pay on a long-term loan. This can save you money at tax time.

What Are the Drawbacks of Getting a Long-Term Loan

Some of the main disadvantages of long-term personal loans include:

  • You may pay more interest over the loan life than a shorter-term loan, as long-term loans typically have lower interest rates.
  • You may have difficulty qualifying for a long-term loan if you have bad credit.
  • Long-term personal loans can be more difficult to repay if you experience financial difficulties during the life of the loan.
  • You may have to pay off the entire loan balance if you decide to sell your home or property.

How to Get a Long-Term Personal Loan

First, research the different types of loans available and find one that best suits your needs. You’ll then need to fill out a loan application and provide financial documentation to the lender.

Once your application is approved, you’ll be able to borrow the money you need and make repayments over an agreed-upon period.

If you’re looking for a long-term loan, shop around and compare offers from multiple lenders. You’ll want to ensure you get the best terms on your loan to save money in the long run.

How to Apply for a Long-Term Loan?

You’ll need to do a few things to apply for a long-term loan.

You’ll need to provide some personal information, like your name and contact information, and some financial information, like your income and debt levels. You’ll also need to provide proof of your income and identity.

Once you’ve gathered all this information, you can start the application process by visiting the website of the lender you’re interested in working with. From there, you’ll be able to fill out an application form and submit it for approval.

Alternatives to Long-Term Personal Loans

Peer-to-peer lending

With this type of loan, you borrow money from individuals or groups of investors instead of a financial institution.

Peer-to-peer loans tend to have lower interest rates than traditional long-term loans, but they may be more challenging to qualify for.

Home equity loan

With this type of loan, you borrow money against the equity in your home.

Home equity loans tend to have lower interest rates than long-term unsecured loans but may require collateral.

Credit Cards

They typically come with much lower interest rates than personal loans, and you can use them anywhere that accepts credit cards.

You can also use them for smaller purchases and pay off the balance over time. Keep in mind, however, that you’ll need to be disciplined with your spending to avoid accruing too much debt.

Where Can I Get a Long-Term Loan

There are many options when looking for personal loans with long-term payments, but Camino Financial is by far the best option for you, even if we offer medium-term personal loans.

While many long-term personal loan lenders offer good terms for personal loans, many have stringent requirements that eliminate most borrowers.

At Camino Financial, we know that it’s not easy finding the cash you need. That’s why we created our solopreneur loan to help you with favorable repayment terms and more accessible qualifications.

Filling out an application is simple, too.

You can complete the entire process online in less than 10 minutes and quickly receive a decision. Moreover, once you are approved, you can get your money quickly.

If you need money to achieve financial independence, apply for a loan today with Camino Financial.

Apply For A Personal Loan!


Is a longer-term loan better?

There is no definitive answer to this question since it depends on several factors specific to each situation.

However, in general, a longer-term loan may be better because it can offer lower monthly payments and a longer repayment term. This can make it easier for borrowers to manage their debt over time.

Additionally, borrowers who cannot make timely payments on their loans may face additional penalties and fees.

How long are personal loans financed for?

Depending on the lender, personal loans can be between 3 and 7 years. Some lenders will also offer a longer repayment period with a higher interest rate.

Keep in mind that the loan term length will also affect your monthly payment amount. So if you want to keep your monthly payments as low as possible, you may want to opt for a shorter loan term.

What is the longest term on a personal loan?

Depending on the financial institution, the typical maximum term for a personal loan can range from 3 to 7 years.

While some institutions may offer loans with terms extending up to 10 years, these are generally only available to borrowers with excellent credit scores.

If you’re looking to take out a personal loan with a longer term, your best bet will likely be working with credit unions or online lenders.

Check if you
qualify for a loan