Your loan term is the length of time you’ll have to pay back your loan. You may want an extended loan term (i.e. 60 months or more), or you may find you’re in a short-term financial crunch and you can repay the loan in a shorter amount of time.
Your loan term affects loan payment amount, cost of borrowing, and which loan product you will choose. Knowing how long you want to take to pay back the loan is an important decision when it comes to borrowing money.
Longer loan terms spread out your loan payments, reducing how much you pay each time but increasing the length of time you’ll pay overall, and increasing the amount of time you’ll pay interest
Shorter loan terms will increase your loan payments, but reduce the number of months you’ll be charged interest fees
If you want flexibility in your loan term – the opportunity to pay off your loan any time – you may want to consider an unsecured personal loan rather than a secured personal loan