Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.
Representative Example: Amount of credit: £550 for 7 months at £122.43 per month. Total repayment of £857.02. Interest: £307.02. Interest rate: 150% pa (fixed). 313.1% APR Representative.

A Long-Term Loan Guide

We provide personal, long-term loans to approved customers who need extra funds. Our loan process was designed with a focus on clarity, and our online application is straightforward and easy to understand. On Stride Financial lending prioritises flexibility, giving approved customers the option of customisable loan amounts and terms. An On Stride Financial loan is unsecured, with amounts available from £150 to £5,000, and loan durations between six months and three years.

Understanding Long-Term Loans

Plenty of people find themselves in need of extra funds, without a clear idea of the best way to get them. There's no shortage of lenders offering fast funding, and it's easy to find yourself taking out a loan without really considering the details. Understanding complex loan concepts like secured versus unsecured, or instalment loans versus single-repayment loans can go a long way towards finding the right loan for you, which is incredibly important for anyone borrowing funds.

As for "long-term loans," let's start by defining the term. First of all, understand that "long-term" doesn't indicate any specific length, but instead refers to loans ranging anywhere from one year to as many as 10, 20 or even 30 years. This is a key aspect of searching for a "long-term loan," because you'll need to be specific about the length of time that works for you. If you know that you want to repay a loan over a year, yet go on the hunt simply for a "long-term loan," you'll probably encounter loan options for far longer than a year.

"Long-term doesn't indicate any specific length, but instead refers to loans ranging anywhere from one year to as many as 10, 20 or even 30 years."

Ultimately, the length of a loan depends entirely on the lender, as do the loan's rates and terms; the loan amounts available; and a variety of other details you'll need to consider.

Long-Term Loans vs. Short-Term Loans

One way to begin narrowing down the loan search is to understand the difference between long-term loans and short-term loans — not just because these are important loan terms to know, but because the length of a loan can affect other key elements, like the interest rate, or even the overall loan amount. While "long-term" and "short-term" don't have concrete definitions — short-term can be anywhere from a few weeks to a few years, while long-term can be anywhere from a few months to 30, 40 or 50 years — it may help to understand them in context. We'll discuss payday loans as an example of a short-term loan, and instalment loans as an example of a long-term loan.

Let's start with payday loans. "Payday" is a term that references the tendency for borrowers to use these loans to get funds and repay the loan on their next payday. Typically, payday loans are in the neighbourhood of 30 days, with a higher interest rate and relatively smaller loan amounts. These are loans with a single repayment at the end of the loan's cycle. It's important to note too that "payday" — like "long-term" — does not necessarily indicate any specifics of the loan. While payday loans tend to share similar characteristics, the details of the loan's length, amount and rates are all determined by the lender. Additionally, while "payday" is a common name for this loan type, it could also be called a "short-term loan." And while all payday loans can be considered short-term, all short-term loans are certainly not payday loans.

"It's important to note too that 'payday' — like 'long-term' — does not necessarily indicate any specifics of the loan."

With instalment loans, the borrower agrees to repay the loan in a series of repayments — or "instalments" — as opposed to one lump sum repayment. Because of the nature of repayments in an instalment loan, it stands to reason that these loans are typically of a longer duration, as a number of repayments will take a longer amount of time than one single repayment.

With that in mind, it's worth noting that when looking for a long-term loan, there's a good chance that a number of your options will be instalment loans, with repayments made over months or years rather than all at once in a big lump sum.

Deciding to Apply

First and foremost, if you're in need of extra funds, it's worth considering a lower-cost alternative to taking a loan. While this may not be an option for everyone, some of us have the good fortune of family members or friends who would be willing to lend us cash.

"As much as possible, take your time in selecting the lender you will apply with, weighing the relevant variables against each other."

However, if this avenue is not open to you, then the most important thing you can do is ensure that you choose the right lender for your circumstances. As much as possible, you should take your time in selecting the lender you will apply with, weighing the relevant variables against each other. Just as importantly, consider exactly what you need from a loan. Do you need a large amount of money over a long period of time, or a smaller amount immediately? This is a huge distinction and will help you to narrow down your search.

And when considering a lender, don't just factor in the loan rates, terms and amounts that they're offering. Consider their reputation, and if possible, try to get a sense of the way they work with their customers. Testimonials are a good place to start, as is their customer support. Taking out a loan is a partnership, and you want to do everything you can to make sure you're signing up with a lender you can trust.

Long-Term Loan FAQs

How long is a long-term loan?

While "long-term loan" obviously refers to a length of time, it's not a specific amount of time. In fact, the category of long-term loans can encompass a huge variety of loan lengths, from a few months to a year, to 10, 20 or even 30 years!

Is a long-term loan an instalment loan?

Due to their longer terms, long-term loans are often instalment loans. The reason for this is that an instalment loan allows the borrower to repay the loan in a series of payments. Since the loan isn't repaid in one lump sum, the loan duration is typically longer than in the case of a short-term loan.

That said, there can be instances of long-term loans that aren't repaid in instalments. While this is rare, some lenders choose to lend larger amounts over a longer term, while allowing the borrower to repay the full loan amount all at once at the term's end.

Do I have to pay more for a long-term loan?

When taking out a loan, the repayment amount depends on a number of variables. Obviously the amount being borrowed is a huge factor for the final repayment, but other factors can contribute as well, such as the fees charged by the lender for services.

Another important clarification to this question is, "more than what?" In comparing a short-term loan to a long-term loan, it's likely that you will pay more altogether for the latter than you will for the former, but that's because longer-term loans are typically for larger amounts than short-term loans.

Does On Stride Financial offer long-term loans?

Yes! We offer loan lengths of 6 months to 3 years to approved customers, which can be called "long-term loans." On Stride Financial loans are available from £150 to £5,000.

Apply Now

On Stride Financial is rated out of 5 by Reviews.co.uk based on reviews