long-term-loans

Long Term Personal Loans

Need a little longer to repay? What you need to know about long term personal loans.

A long term personal loan is a loan that has a loan term of between five to seven years. This is a considerably longer amount of time, so they’re often used for big purchases such as a car, boat, complicated surgery or a huge wedding.

Something to be careful of when it comes to long term personal loans are you repayments. Since you’re extending the loan for as long as you can, your ongoing repayments may be lower but you will be paying more interest overall. This can be good for your short term finances as it will be easier on your cash flow, but you'll be in debt for longer.

ANZ Fixed Rate Personal Loan

ANZ Fixed Rate Personal Loan

12.45 % p.a.

fixed rate

13.32 % p.a.

comparison rate

  • Low ongoing fees
  • Flexible repayment options
  • Borrow up to $50,000
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ANZ Fixed Rate Personal Loan

This competitive unsecured fixed rate personal loan from ANZ is suitable for a range of uses. Apply for up to $50,000.

  • Interest rate: 12.45% p.a.
  • Comparison rate: 13.32% p.a.
  • Interest rate type: Fixed
  • Application fee: $150
  • Minimum loan amount: $5,000
  • Maximum loan amount: $50,000
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Long term personal loan comparison

Rates last updated December 19th, 2018
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Product Description Monthly Repayment
ANZ Fixed Rate Personal Loan
12.45% (fixed)
13.32%
$5,000
1 to 7 years
$10
$150
You'll receive a fixed rate of 12.45% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.
ANZ Variable Rate Personal Loan
15.99% (variable)
16.84%
$5,000
1 to 7 years
$10
$150
You'll receive a variable rate of 15.99% p.a.
A flexible loan with amounts starting $5,000 that offers flexible repayments and a redraw facility.
Westpac Unsecured Personal Loan
12.99% (fixed)
14.14%
$4,000
1 to 7 years
$12
$250
You'll receive a fixed rate of 12.99% p.a.
Benefit from the security of a fixed rate with the flexibility of additional repayments. Existing Westpac customers may qualify for discounts.
NAB Personal Loan Unsecured Fixed
Headline rate 13.49% (fixed)
14.36%
$5,000
1 to 7 years
$10
$150
You'll receive a fixed rate between 11.49% p.a. and 18.99% p.a. based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years.
NAB Personal Loan Unsecured Variable Rate
Headline rate 12.69% (variable)
13.56%
$5,000
1 to 7 years
$10
$150
You'll receive a variable rate based on your risk profile. The headline rate is 12.69% p.a.
An unsecured loan up to $55,000 you can use for a range of purposes. Benefit from fee-free additional repayments and a redraw facility.
NOW FINANCE Personal Loans
From 8.95% (fixed)
10.56%
$5,000
1.5 to 7 years
$13
$495 (Based on $10,000)
You'll receive a fixed rate between 8.95% p.a. and 16.95% p.a. based on your risk profile
Apply for loans from $5,000 and get a dedicated loan manager. No security required.
Australian Military Bank Variable Rate Personal Loan
From 7.88% (variable)
8.72%
$1,000
1 to 7 years
$10
from $100 to $500
You'll receive a variable rate between 7.88% p.a. and 18.82% p.a. based on your risk profile
An unsecured loan with flexible repayment options and a low minimum borrowing amount.
CUA Unsecured Fixed Rate Personal Loan
11.99% (fixed)
12.25%
$5,000
1 to 7 years
$0
$175
You'll receive a fixed rate of 11.99% p.a.
An unsecured loan from $5,000 with no monthly or establishment fees and flexible repayments.
CUA Discount Fixed Personal Loan (Loans over $30,000)
10.99% (fixed)
11.25%
$30,000
1 to 7 years
$0
$175
You'll receive a discounted fixed rate of 10.99% p.a.
Receive a discounted rate for borrowing over $30,000 and benefit from features such as no monthly fees and flexible repayments.
CUA Unsecured Variable Personal Loan
11.89% (variable)
12.15%
$5,000
1 to 7 years
$0
$175
You'll receive a variable rate of 11.89% p.a.
Borrow from $5,000 with the option for flexible repayments and no monthly fees.
CUA Discount Variable Personal Loan (Loans over $30,000)
10.89% (variable)
11.15%
$30,000
1 to 7 years
$0
$175
You'll receive a discounted variable rate of 10.89% p.a.
Borrow over $30,000 and receive a discounted interest rate. No monthly fees and a redraw facility also available.
St.George Unsecured Personal Loan - Variable Rate
From 12.99% (variable)
14.06%
$2,000
1 to 7 years
$12
$195
You'll receive a variable rate between 12.99% p.a. and 19.99% p.a. based on your risk profile
A low minimum borrowing amount of $2,000 plus the convenience to make extra repayments and redraw them if you need them.
MyState Bank Unsecured Personal Loan
12.99% (variable)
16.42%
$3,000
1 to 7 years
$10
$200
You'll receive a variable rate of 12.99% p.a.
Apply for up to $50,000 and benefit from features such as fast approval, free online redraws and no penalties for early repayment.

Compare up to 4 providers

Long term personal loans

How does a long term personal loan work?

Most personal loans offer loan terms of between one and seven years, so a long term personal loan has terms within the five- to seven-year mark. While these loans are usually taken out by people who are borrowing more, usually in upwards of $30,000, they can also be taken out by people borrowing a lesser amount but unable to afford higher repayments.

Borrowers will have a choice between fixed and variable rates with their long term personal loan. Fixed rate loans mean steady repayments but variable rate loans give you more flexibility with your repayments, including being able to make additional repayments and pay back the loan early.

Which is better: long term or short term?

Ultimately, a shorter loan term is generally better. Your repayments may be higher with a short term personal loan but you will pay more interest overall. For example, a $20,000 loan repaid over four years at a 12.5% p.a. rate will see you repaying $532 each month and paying $5,517 over the course of the loan term. If that term was extended to seven years you would be repaying $358 per month but the interest you pay would essentially double to $10,108 over the loan term.

How you can compare personal loans that have a longer loan term

  • What is the interest rate of the loan?
    This defines what your repayments will be over the course of the loan. It’s important that you take this into account by using a repayment calculator to determine whether you can make the repayments.
  • Is the loan secured or unsecured?
    Secured loans are ones that require you to provide some kind of collateral, and these tend to attract lower interest rates in comparison to unsecured loans. If you're buying a car, the car can serve as collateral, or you can use an asset you already own, such as your car or equity in your home, as collateral for a loan.
  • What is the loan amount you'll be borrowing?
    How much you can borrow depends on various factors like what you need the loan for, your ability to provide suitable security, your annual earnings and your monthly expenditure.
  • Do you have multiple repayment options?
    Repayment flexibility comes in the form of you being able to choose between weekly, fortnightly, and monthly repayments. If you take a variable rate loan look for one that allows you to make extra repayments without incurring any penalties, as this allows you to pay your loan off sooner. In such a scenario, you may also want to look for a loan that offers a redraw facility.
  • What are the other fees and charges on the loan?
    Other fees and charges apply. These fees are listed per lender for you to check.
  • Do you have a range of loan terms available?
    As the term suggests, long term personal loans usually take 5-7 years to pay off.

Read more: Unsecured personal loan comparisons

The good and not-so-good

The good

  • Lower repayments. A loan with a longer term means lower repayments, giving you more cash flow throughout the loan term.
  • You could hack the loan. By choosing a longer loan term and making additional repayments you could pay your loan back sooner while taking advantage of the lower repayments.
  • You could use the finance for a huge expenses. Long term personal loans allow you to finance more expensive purchases such as cars or boats.

Not-so-good

  • You will pay more in interest. A longer loan term, as demonstrated in the example above, sees you paying more interest over the course of your loan term.
  • Keep you in debt longer. Having longer repayment period makes you pay off the entire loan longer.
  • Tendency to incur another debt. Since consolidating your debt can free you from bulk payments, you might be inclined to apply for another source of credit.

Things to avoid about long term personal loans

  • Excessive debt. While taking out a long term personal loan might seem like a good idea at the onset, but it can lead you debt that might be difficult to repay, depending on your circumstances. Try to make a repayment plan ahead of time and account for unexpected expenses in your budget.
  • Fees and charges. Make sure you go through all the fine print and find out exactly what you have to pay in terms of fees and charges. These can come in the form of application fees, insurance costs, arrangement fees, early repayment fees, settlement charges, and late charges.
  • Tendency to splurge. Long term personal loans normally set a minimum loanable amount so you expect to get a larger chunk. What does this entail? You can be tempted to use it all up and buy more than what you need.

Case study

Personal loan #1 Personal loan #2
Interest rate 12.99% 12.99%
Loan amount $40,000 $40,000
Loan term 4 years 7 years
Total interest $11,499 $21,107
Difference + $9,608

How to apply for long term personal loans

Applying for a long term personal loan is rather straightforward, and you can start by comparing your options. Go through the options on this page and once you find a suitable product, click on it to go to the provider's website. As part of the application process most lenders who provide such loans require that you meet a few basic eligibility criteria, which usually include you being an Australian resident and being over the age of 18.

As part of the application process, prepare to provide details about your employment and your earnings. If you're taking a secured loan you'll have to provide documents to prove ownership of the collateral in question.

Picture: Shutterstock

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Personal Loan Offers

Important Information*
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 28.69% p.a. based on your risk profile.
Apply for a loan up to $70,000 and repay your loan over 3 or 5 years terms.

Citi Personal Loan Plus

You'll receive a variable rate between 8.99% p.a. and 17.99% p.a. (9.96% p.a. to 18.91% p.a. comparison rate) based on your risk profile
A credit limit up to $75,000 that you can continue to draw down over terms up to 5 years.

ANZ Fixed Rate Personal Loan

You'll receive a fixed rate of 12.45% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

RateSetter Unsecured Personal Loan - 3yr Fixed

You'll receive a fixed rate from 8.11% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 6 months. Interest and comparison rates calculated for a loan term of 3 years.

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