A long-term loan is a form of loan that is paid off over an extended period of time greater than 3 years. This time period can be anywhere between 5-7 years.
With a long-term loan, you can borrow a larger amount of money and pay it back over a longer repayment period which makes your repayments more manageable.
This allows you to spread out your loan payments, reducing your monthly repayments. However because the loan is stretched out over a longer period of time, you’ll be making interest payments the entire term, driving up the total cost of the loan.