Popular searches

Product Home Loan

Products & Services (12)

Apply NowProduct Home Loan
Apply Now Product Loan Agaisnt Property - Home Loan
Apply Now Product Balance Transfer - Home Loan
Apply Now Product Home Loan EMI Calculator

Recent searches

DownloadForm Home Loan Application Form
Download Product Loan Agaisnt Property - Home Loan
Download Article Benefits of Balance Transfer


  • Home Loans, now at 6.50% p.a.

    Unlimited benefits with a start-to-finish digital process with IDFC First Bank Home Loans

    Home Loan
  • Activate your Credit Card within minutes and enjoy unlimited benefits

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

Personal Loan

A quick guide at long-term Personal Loans

04 Jan 2022 by Team FinFIRST
Long term personal loans

Long-term personal loans can meet your requirement without disrupting your finances. But is that enough reason to lock yourself into a long-term financial commitment?

Personal loans give borrowers plenty of options. Whether it is for a planned home renovation or for covering medical bills, personal loans can help meet all kinds of requirements. Personal loans also offer freedom, as borrowers can choose their repayment terms. They can repay the loan in a few months or choose a longer repayment cycle.

While a longer repayment schedule may seem like the right option, it has certain drawbacks. Borrowers must analyse the pros and cons before they convert their personal loans into a long-term commitment.

Pros of long-term personal loans

Long-term personal loans carry many benefits, including:

Freedom to choose your amount

If you apply for a personal loan for five or more years, you can borrow the maximum amount possible based on your existing debt-to-income ratio. Most major banks, such as IDFC FIRST Bank, offer five-year loans up to ₹40 lakh, although you must meet the eligibility criteria. Short-term personal loans usually come with a ceiling on the maximum amount you can borrow.


Peer-to-peer lending: Genius or folly

The importance of your debt-to-income ratio

Easy EMIs

The EMI amount is less on a long-term personal loan. It gives you the flexibility to live your life and meet your goals without the financial burden of a loan.

Helps build your credit score

It takes time and consistency to build a strong credit score. A long-term personal loan can help you build your credit score, as the number of EMIs are more. If you pay all of them on time, it enhances your creditworthiness.

Long-term personal loans may or may not work in every situation. Like every product, it has certain drawbacks, but it does not decrease its popularity.

Cons of long-term personal loans

Here are a few cons of long-term personal loans:

Decreases your credit limit

A lender will evaluate your debt-to-income ratio before authorising your loan application. A long-term personal loan may affect your credit limit and make you ineligible for further loans. Also, paying EMIs monthly for a sustained duration is a task. Hence, before taking out a long-term personal loan, evaluate your current income, available funds, and repayment appetite.

Increased cost

Long-term personal loans are more expensive than short-term loans. The duration is more in long-term loans, so you end up paying interest every month. It amounts to a significant sum over time, which increases the cost of your personal loan.

More stress

A longer personal loan tenure will put you under financial strain for a longer time. You may need to regularly plan and monitor your monthly spending to ensure timely EMI payments. It can be challenging and might lead to mistakes in money management.

Long-term personal loans can help borrowers in time of need, and its flexibility ensures borrowers do not feel burdened by the loan. Many financial institutions, including IDFC FIRST Bank, offer long-term personal loans online to help borrowers quickly meet their requirements.

IDFC FIRST Bank, however, has a quick approval and disbursal process. If borrowers have a clean credit history, the loan amount can reach their accounts within hours. The interest rate is also affordable and among the best in the industry. Downloading the IDFC FIRST Bank mobile banking app to get a personal loan today.



The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.