Monthly Personal Loans |‌ ACFA

Personal loans with a monthly long repayment term of five years are available. While this is a benefit, rates can be higher, and monthly payments may be lower.

The terms of most unsecured personal loans are between one to five years. Personal loans with a more extended repayment period, typically up to seven years, are long-term. Many banks, credit unions, and online lenders offer long-term personal loans.

The pros and cons of a personal loans for the monthly term

  • Higher loan amounts: Lenders may offer a longer repayment term if you need large sums of money to finance home improvements and medical procedures.
  • Lower monthly payments: Loans with longer terms will pay less than loans with shorter terms. A longer-term can bring you more interest, but it may not be worth the extra cost. When you apply for a loan, consider the monthly payment and the interest rate.

Cons of taking out a personal loans for the monthly term

  • Long-term loans may have higher interest rates. Lenders might charge higher rates because they consider them riskier. You have a greater chance of your financial situation changing in such a way that you are unable to repay the loan.
  • Higher interest: If you don’t pay off the loan early, you’ll pay more interest over the term of the loan than if you borrowed a shorter-term loan.
  • Your finances could change: For six to seven-year, your financial picture will likely change. You might need to make compromises when you have long-term debt.

Consider a personal loan for the long-term

If you need to borrow a large amount of money over a long period of time and have to repay it in installments, a longer-term loan is the best option. For example, you might need $50,000 to remodel your kitchen. A longer-term will lower your monthly payments. You can use the funds in almost any way, as with all personal loans.

You may want to consolidate your debts with a long-term loan.

A seven-year consolidation loan might be a better choice if you know that it will take ten years to pay your credit cards off. To estimate the savings you could make before applying for a loan, use our debt consolidation calculator.

How to obtain a personal loan for the long-term

Banks: Discover, USAA, and Wells Fargo all offer loan terms of up to seven years. Existing customers may be eligible for lower rates or higher loan amounts.

Credit unions: Because they offer low rates and flexible loan options, credit unions can be a great first choice for personal loans. The credit union will require you to sign up and run a credit check on your application. There is no pre-qualification. A hard pull temporarily lowers your credit score.

Both First Tech Federal Credit Union and Navy Federal Credit Union offer loan terms up to seven years. Navy Federal offers home improvement loans with terms up to 15 years. There is no minimum credit score requirement for credit unions.

Online lenders: Online loans can be fast and easy. A few online lenders offer extended loan terms, such as LightStream and Marcus By Goldman Sachs. These lenders are available to borrowers with good credit.

Next steps: Compare rates for loans

Learn first how to pre-qualify for a personal loan. Also, learn how credit affects it. To determine if you are approved for a loan, and if so, at what interest rate, you can pre-qualify with multiple lenders through ACFA.


ACFA’s review process rates and evaluates personal loans from over 30 lenders. We interviewed representatives from the companies and collected more than 45 data points. ACFA editors and writers conduct an annual fact check and update and make any updates throughout the year.

Our star ratings award lenders that provide consumer-friendly features points. These include flexible payment options, quick funding times, customer service, reporting to credit bureaus, financial education, transparent rates, terms, low-interest rates with no fees, and easy pre-qualification.

We also take into account regulatory actions taken by agencies such as the Consumer Financial Protection Bureau. These factors are weighted based on how they affect consumers’ experience and which are most important.


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