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10 year loans?

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  • 09-04-2009 9:38pm
    #1
    Ordinary man
    Registered Users Posts: 2,488 ✭✭✭


    Do any banks offer 10 year loans at the minute? A lot of people i talk to lately are having bother juggling loans and credit card payments, would it not be in the banks interests to offer to consolidate all loans over 10 years instead of the 3 or 5 stardard periods? :confused:


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    #2
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Ordinary man wrote: »
    Do any banks offer 10 year loans at the minute? A lot of people i talk to lately are having bother juggling loans and credit card payments, would it not be in the banks interests to offer to consolidate all loans over 10 years instead of the 3 or 5 stardard periods? :confused:

    7 years is the max with 5 being the preferred period. It wouldn't be in the interest of conusmers if banks started offering 10 year personal loans @ between 6-10%. First off the consumer would end up paying an astronomical amount of interest. Second the bank would be extending their risk over a longer period without really justifying proper reasoning for same. All the bank is doing is extending the period in which a write off could occur which makes every other loan more expensive as the loan has to be priced to take this into account.


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    #3
    romah
    Closed Accounts Posts: 150 ✭✭romah


    I would look at the length of time for a loan in two ways

    1. What is the loan for ??

    A holiday loan should be 1 year
    A car loan ..maybe 3 -5 years
    A home improvements loan ...7 -10 years..

    Banks will certainly take into account the purpose of the loan vs length they will give it for

    2. Second consideration is "how much can you reasonably afford to pay back ??....
    Divide your monthly repayments including interest into the total loan amount you are looking for.

    e.g. If you can afford €200 each month ...€12000 over 60 months ..make it a 5 year loan..rather than a 3 year or a 10 year ..


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