Personal loan is considered to be one of the most accessible and easiest to manage type of a loan that an individual can avail of. Personal loans are usually divided into two general categories namely long term and short term loan. Applying for a long term instant cash loan is the better choice basically because the loan is provided by established and conventional lender such as banks, credit unions, and other large lending institutions. Big online lenders are also said to be a good source for long term personal loans.
The Basics of Long Term Loans
As the term connotes, repayment terms for this kind of loan is basically longer than other loans. One might think that the longer you pay for a loan the more interest it would incur. Unless the interest rate is compounded, no matter how long the term is, the borrower will not be paying more than what he has bargained for. On the contrary, longer payment will give him more time to manage his income thereby allowing him to maximize the loan amount he has gotten. Also, since the loan will be provided by banks and other established commercial lender, there is a possibility that you will be able to negotiate a reasonable amortization for the loan amount.
Secured and Unsecured Loans
Long term loans can be secured or unsecured. Applicant for long term personal loan can easily get a sizable amount by providing assets as collateral for the loan. Properties such as house and lot, expensive cars, arts and even stocks can be use as security for the loan. With a secured long term loan, BORROWING a sizable sum of money from the lender will not be a problem. Aside from this, if the asset being secured is a lot more valuable than the amount being borrowed, there is a good chance that the borrower and the lender can come to a very reasonable agreement relative to repayment terms, interest rates and amortization amount. For long term unsecured loans, negotiation regarding interest rates and amortization may be quite limited considering that the borrower will have nothing to bargain with except his credit rating.