A long duration for funding can be both an advantage and a disadvantage at the same time. If on the one hand being able to repay loans in 120 months is easier for the sustainability of the installment, on the other hand it will force us to pay a much higher amount of interest than for equal amounts and shorter durations.
We are also called upon to choose above all specific types of loans such as consolidation loans or transfers of the fifth. While for the request of a personal loan that does not fall into these two categories, the number of banks offering a 10-year amortization plan is rather small.
Loans in 10 years: when is it obtained with certainty?
As mentioned above, there are only two types of loans for 120 months, ie with a “certain” repayment term of ten years. These are two loans that have been more or less accurately regulated by the same legislator, namely the consolidation loan that was created to help those who already have loans in progress and want to reorganize them by combining the various installments into one and the transfer of the fifth for which two possible “durations” of 60 or 120 months have been decided.
Obviously for both types, these are “maximum” durations because the determination of the amortization schedule cannot be separated from the applicant’s age. To better understand this concept let’s take an example:
- the applicant is 45 years old: he can apply for a loan with a duration of 120 installments;
- the applicant is 70 years old: if the bank to which he applies provides for a maximum age equal to or greater than at least 80 years, then he can obtain a ten-year amortization plan; if, on the other hand, the maximum age is 75, then at most, you can expect a repayment in 60 installments.
From this point of view, it is very important when choosing, especially if you are looking for loans for 120 months, to focus on the financial ones or banks that apply longer durations. For example with Spin Lender there are no particular limitations for reaching a ten-year repayment (not being linked to the requested amount), but the maximum personal age is 75 years.
With Lite Lender Company, thanks to the policy of the Best bank which belongs to the same group, up to 90 years of age are obtained, but the duration is also linked to the amount requested: for low amounts the durations are short, while only for high amounts close to the 60 thousand USD can be aspired to for a duration of 120 months (always in the context of personal loans).
Convenience and durability
It goes without saying that to mitigate the impact of interest expense that will inevitably weigh more for longer durations, it is necessary to choose loans with lower rates or preferably that decrease as Tan with increasing duration. To better understand this aspect, it is sufficient to ask for two or three quotes with a duration of for example 120 months, 60 months and 84 months. In this way, the comparison both as interest income and as rates actually applied becomes very easy.
Particular attention must be paid to fixed rate products (always intended as Tan). In fact, with increasing duration, the effect on the Taeg becomes particularly heavy, even if from a psychological point of view one feels reassured by the wording of the “fixed tan”. Finally, it should be stressed that there are very few cases in which variable rates are applied and generally these are loans with a duration of over 120 months.
To make a sort of classification of “typical” credit policies, let’s see some examples of conditions, remembering that rates obviously change over time and that therefore they are only models to be used to be able to choose more consciously:
- Infra bank : the maximum amount that can be obtained is 30 thousand USD and the amortization plan ranges from 24 to 120 months. The investigation costs applied are variable and the estimated delivery times are 20 days. The reimbursement must end within 75 years of age;
- Cream bank has a fixed rate for the duration that is chosen. To be able to get up to 120 months of repayment you have to choose the Large type which starts from over 10 thousand USD in amount to reach up to a maximum of 30 thousand USD. There are no preliminary costs. Furthermore, if you credit the salary to the current account, you get a discount on the finished rate of 0.8%. However, the funding must be paid off within 70 years at the latest;
- Spin Lender allows you to get up to a maximum of 30 thousand USD, with the rate decreasing slightly with the duration. What makes the loan from the Across Lender finance company very popular is the fact that even for small amounts, the possibility of obtaining the ten-year duration is provided. Functional the presence of options that make the management of financing more flexible;
- With Fine bank you can have “similar” effects in terms of flexibility with the version of the Spin Lender Top that allows you to get up to 75 thousand USD repayable up to 10 years. The maximum age on expiry must be 85 years;
- Copy Lender : the Cream Bank also offers this duration within its own line called Easy and precisely in the case of the db Easy Ristruttura version. The maximum amount proposed is 30 thousand USD.
The choice to apply for loans to be repaid in 120 months should only concern fairly large amounts. The criterion to be used, however, is that of the sustainability of the installment: when making a simulation or requesting a quote, it is necessary to opt for the installment / duration ratio which stops slightly before the sustainability threshold without efforts of the amount to be reimbursed.
If a consolidation loan is to be chosen, the amount should be less than the sum of the installments already in progress. In this case, the possibility of going up to 120 installments must be carefully calculated taking into account the loans that we have already repaid for at least half of them.