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Long Term Personal Loans

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

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We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder .

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.

NAB Personal Loan Unsecured Fixed

NAB Personal Loan Unsecured Fixed

From

9.99 % p.a.

fixed rate

From

10.88 % p.a.

comparison rate

  • Additional repayments without penalty
  • No early exit fees
  • Borrow up to $55,000
Security Logo

100% confidential application

NAB Personal Loan Unsecured Fixed

NAB offers a fixed interest rate loan. Use your loan for a holiday, home improvement, a special project or even a wedding. It’s even a smart way to take control of your credit card debt.

  • Interest rate from: 9.99% p.a.
  • Comparison rate: 10.88% p.a.
  • Interest rate type: Fixed
  • Application fee: $150
  • Minimum loan amount: $5,000
  • Maximum loan amount: $55,000
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Long term personal loan comparison

Data indicated here is updated regularly
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
NAB Personal Loan Unsecured Fixed

From 9.99% (fixed)
10.88%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) 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. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
OurMoneyMarket Personal Loan

From 6.75% (fixed)
6.96%
$2,001
1 to 7 years
1.5–6% of your total loan amount
$0
You'll receive a fixed rate from 6.75% p.a. to 20.99% p.a. based on your risk profile
A personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.
Symple Loans Personal Loan

From 5.75% (variable)
6.47%
$5,000
1 to 7 years
from 0% to 5% of the loan amount
$10
You'll receive a personalised interest rate from 5.75% p.a. to 21.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
CUA Unsecured Fixed Rate Personal Loan
9.89% (fixed)
10.14%
$5,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 9.89% p.a.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
Heritage Bank Standard Variable Personal Loan
11.99% (variable)
12.61%
$5,000
1 to 10 years
$200
$5
Choose a variable rate loan and receive a 12.61% p.a. comparison rate
Variable rate loans are available from $5,000 - $100,000 on terms of 1 to 10 years.
MoneyMe Personal Loans

From 8.99% (fixed)
10.68%
$3,001
2 to 5 years
5 - 8% of the principal borrowed, capped at $1,200
$0
You'll receive an interest rate between 8.99% p.a. and 29.99% p.a. based on your risk profile
A flexible personal loan from MoneyMe with access to cash when you need it.
NAB Personal Loan Unsecured Variable Rate

From 9.99% (variable)
10.88%
$5,000
1 to 7 years
$150
$10
You'll receive a variable rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
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. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
CUA Unsecured Variable Personal Loan
11.89% (variable)
12.15%
$5,000
1 to 7 years
$175
$0
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.
Latitude Personal Loan (Unsecured)

From 7.99% (fixed)
9.24%
$3,000
1 to 7 years
$250 (Loans under $5000 - $140)
$13
You'll receive a fixed rate between 7.99% p.a. and 19.99% p.a. based on your risk profile
Apply for what you need from $3,000 and use it for a range of purposes. Repay weekly, fortnightly or monthly.
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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 to a higher 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 #1Personal loan #2
Interest rate12.99%12.99%
Loan amount$40,000$40,000
Loan term4 years7 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

More guides on Finder

Personal Loan Offers

Important Information*
Logo for Harmoney Unsecured Personal Loan
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) 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. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.

Logo for Pepper Money Unsecured Fixed Rate Personal Loan
Pepper Money Unsecured Fixed Rate Personal Loan

You'll receive a fixed rate between 6.95% p.a. and 17.95% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Make additional repayments or pay off the loan early, penalty-free.

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