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Long-term loans refer to loans with a loan term of more than 5 years (excluding 5 years).

Second, long-term loans are mostly for several years.

In life, people often solve the financial problem through loans. Friends who have handled loans know that loans can be divided into short-term loans, medium-and long-term loans and long-term loans according to the loan term. However, some friends still don't know much about this. Is a loan for more than a few years a long-term loan?

Usually, loans with less than one year are called short-term loans, loans with more than one year and less than five years are medium-and long-term loans, and loans with more than five years are long-term loans. Long-term loans of more than five years are mainly used for some businesses with long return period. Usually, the amount of long-term loans is relatively high, so it takes a long time to repay the loans. Housing loan is the most common long-term loan product, and the longest loan period is 30 years.

Long-term loans usually have higher interest rates because of their longer loan term. This is because the liquidity of long-term loans invested by banks is relatively poor. In order to make up for the loss of poor liquidity of banks, banks will charge borrowers higher interest rate costs.

When an individual user applies for a loan through a bank, he can consult the bank about the loan in advance and know the loan interest rate in advance. The loan interest rates of different banks may be different. It is suggested that the borrower can choose to apply for a loan through a bank with a lower interest rate, so that the loan interest paid later will be less, which is conducive to the borrower's repayment of the loan principal and interest later.

It is suggested that when borrowing money, friends with financial needs should choose the loan amount and repayment period that suits them according to their actual repayment ability, otherwise, the living standard will be reduced easily due to repayment pressure, and the borrower may also be overdue because of his inability to repay.

It should be noted that if repayment is not made on time, once overdue behavior occurs, penalty interest will be generated. Usually, the penalty interest rate is higher than the normal loan interest rate. The longer the overdue period, the more penalty interest will be generated. Moreover, when the borrower is overdue, the bank will upload its overdue records to the central bank's credit information system, resulting in a bad record of personal credit information, which will have an impact on the later credit business. For example, loans for buying a house and a car may be rejected by banks because they are overdue.

According to the relevant regulations, after the borrower repays the overdue debt, the bad records will be counted from the date of paying off the loan principal and interest, and will be kept in the credit information for five years, which means that the credit business will be affected within five years, which shows that the overdue consequences are very serious.

In order to avoid not being able to repay the loan on time after borrowing, the borrower must measure his repayment ability when applying for a loan and choose the loan term that suits him according to his actual situation.

3. What is the term of the long-term loan?

The term of short-term loan is 1 year, that is, more than 1 year (excluding 1 year) and less than 5 years (including 5 years).

4. What is the term of the long-term loan?

Short-term loan: a form of loan granted to enterprises by banks or other financial institutions in China with a term of 1 year (inclusive). At present, China's short-term loans are divided into working capital loans, temporary loans and settlement loans according to their purposes. According to the different ways of borrowing, it can also be divided into guaranteed loans, mortgage loans, pledge loans and credit loans. Medium-term loans refer to loans with a loan term of more than one year (excluding one year) and less than five years (including five years); Long-term loans refer to loans with a loan term of more than 5 years (excluding 5 years). Including: technical transformation loans, capital construction loans, engineering loans, real estate loans, etc. Medium-and long-term loans, also known as project loans, refer to loans issued by commercial banks for borrowers to build, expand, rebuild, develop and purchase fixed assets investment projects. Real estate loans also belong to the category of project loans, but the policies implemented are different from those of project loans.