How long it takes to repay a loan will largely depend on the type of loan, and the lender. Payday loans are usually repaid within two weeks. Title loans may allow borrowers a matter of weeks, up to a couple of months to repay. Personal installment loans on the other hand can be repaid in up to a couple of years in some cases.
Repayment periods vary widely depending on what type of loan you have. A lot of small personal loans tend to be repaid quickly. Usually, these loans are designed for borrowers with lower credit scores who need quick cash. If you’re curious about a specific type of loan, you’ve come to the right place. Below is a shortlist of some of the most common loans, and how long their repayment periods tend to be.
Auto Loans: This is a loan used to purchase a vehicle. They can come directly from the dealership, or you can get one from a traditional lender like a bank or credit union. Typical auto loans are repaid within five to seven years depending on your specific terms and conditions.
Mortgages: A mortgage is a loan that allows you to buy a house, condo, or other types of property. They’re very large loans since property is quite expensive. Mortgage repayment periods are generally between 15 to 30 years.
Personal Installment Loans: A personal installment loan is a good alternative to other types of low-credit options. This is an unsecured personal loan that allows borrowers to get a few hundred dollars, up to several thousand. They’re normally repaid within a couple of months, all the way up to a couple of years.
Payday Loans: A payday loan is a short-term, high-cost cash loan for borrowers with low credit scores. They’re known for being repaid very quickly, and for carrying rather high interest rates. Usually, a payday loan is repaid within two weeks, or by the borrower’s next payday.
Title Loans: A title loan is a secured loan where the borrower offers their vehicle title as collateral. They are usually repaid within a couple of months, but that depends on the lender and the terms of the loan.