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Tata Capital > Blog > Personal Use Loan > Long Term Personal Loans Pros and Cons

Personal Use Loan

Long Term Personal Loans Pros and Cons

Long Term Personal Loans Pros and Cons

Let’s face it! Your monthly income may not cover every big-ticket purchase or unforeseen expense that comes your way. In such cases, it is best to apply for long-term personal loan.

Personal finance can be a true savior during a financial crisis. This loan type provides funds to cover a diverse set of expenses like medical emergencies, weddings, home renovations, or educational opportunities. But, before you apply for a long-term personal loan, you must be aware of its pros and cons.

Here are some of the prominent advantages and disadvantages of long-term personal finance.


  • One of the most significant advantages of long-term personal finance is that you don’t have to pledge collateral to avail it. Simply put, as an applicant, you can get the loan for your big-ticket purchase without committing your home or car as a lender guarantee.
  • Another notable benefit of long-term loans for personal reasons is that they are versatile in nature. Capital from long-term personal finance can be used for a vacation, a wedding reception, medical emergencies or any other expense.
  • Personal loan interest rates are relatively affordable, given you don’t have to pledge a collateral. This makes it one of the wisest picks for unsecured financial assistance.
  • Finally, you can also apply for personal finance if your credit score is not too high.

Additional Read: How to Choose the Best Personal Loan for Needs?


  • As compared to secured loans (where you have to pledge a guarantee), unsecured personal finance may have a slightly higher interest rate.
  • Much like various other loans, personal finance also comes with late payment penalties. This clause essentially demands you to be more vigilant with the timeline of every EMI payment.
  • Sure, personal finance is a great option for you if you have a low credit score. But, the lower your credit score, the higher the interest rate you may pay on your loan.

Additional Read: Difference between Short and Long-term Personal Loans

Final thoughts

As you can see, the pros of personal finance clearly outweigh its cons.

Are you looking to avail of personal finance but are unsure if you are eligible to apply? If so, then go through the relaxed personal loan eligibility criteria online on the Tata Capital website and apply with us.

We offer personal loans at attractive interest rates, with flexible repayment norms, online application and minimal paperwork. We also advise you to use our online personal loan EMI calculator as that will help evaluate your potential monthly installments with us.

So, what are you waiting for? Rely on India’s leading lending institution, Tata Capital and avail of personal finance. Allow us to help you fulfill all your big-ticket expenditures.

To know more, log on to our website or give us a call today! 

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