Short-Term vs. Long-Term Loans: Which One Should You Choose?

When you plan to apply for a personal loan, you need to decide on the best time to pay it back. Will you need your loan for the short term or the long term? Whether it is a loan or credit depends on what you need financially, how much you can repay, and what you plan to achieve.

Those who earn a salary and are between 25 and 55 should learn about loan tenures to borrow wisely. Because Rupee112 offers fully digital loans, you can choose a term that fits your needs for either a small urgent need or a big life plan.

This is how you determine if a short-term or long-term loan is suited to your situation.

What Is a Short-Term Loan?

Most short-term personal loans require you to pay within 12 months. It is made for people who require little money and want to settle their dues fast.

Salaried professionals often use short-term loans for:

• Medical expenses

• Urgent home repairs

• Small-scale travel

• Consolidating minor debts

With a short-term loan, you have to pay less interest because you pay the debt off quickly. Since you pay smaller down payments and are charged higher EMIs, you should make sure your finances will not be affected.

What Is a Long-Term Loan?

Usually, a long-term personal loan is for 12 to 36 months or a longer period. It is more useful when you need to finance big expenses that you wish to pay off gradually.

Typical uses for long-term loans include:

• Home renovations

• Major travel plans

• Skill-building courses

• Weddings or large family events

The most important point is that you have to pay lower and more manageable EMIs each month. But if you have the loan for a longer time, the amount of interest will add up over the years.

Key Factors to Consider When Choosing

Your Financial Need

If you require money for a little while and it’s not much, a short-term loan works best for you. With big expenses, a long-term loan is usually more comfortable to pay off.

Your Income and Cash Flow

When you can meet the bigger EMIs, choosing a short-term loan helps you avoid paying a lot of interest. In case you do not have much flexibility in your income, a longer tenure will help.

Your Financial Goals

Please wait until the loan is done rather than overworking yourself to pay it back ahead of schedule. Go for a repayment schedule that helps you meet your goals easily and does not add unnecessary stress.

The Way Rupee112 Supports Your Decision

Offered through its digital platform, Rupee112 makes digital loans available.

• You can get personal loans worth up to ₹1,00,000

• Digital process

• Tenure choices specially made for you

• Easy-to-understand terms for repayment that have no hidden expenses

You are free to consider different possibilities for tenure and go for the one that suits your financial situation.

Everyone’s needs for money are different, so short-term or long-term loans may vary. Choose the loan that matches your targets and what you can afford to pay each month.

You can use Rupee112 to quickly adjust your loan terms through an online process and be confident when paying it back.

Do You Know Which Loan Will Suit You Best?

Check out Rupee112.com immediately. Find personal loans that can include repayment terms over the period you prefer, such as fast or slow.