10-Year Personal Loans: What to Know About Long-Term Loans

Yes, 10-year or 120-month personal loans exist, but they're less common than shorter-term loans of two to seven years.

Most lenders cap unsecured personal loan terms at 60 to 84 months. However, a small number of specialty lenders offer 120-month terms to qualified borrowers, often for larger loan amounts or specific purposes.

When considering a 10-year personal loan, remember that longer terms mean lower monthly payments, but at the cost of more total interest paid. Lenders will also require that you have a strong credit score (at BHG Financial, this means 640 or higher), stable income, and a manageable debt-to-income ratio.

Since fewer lenders offer personal loans with 10-year terms, expect to do thorough research to find the right choice. Considering how you plan to use the funds and whether you prefer secured or unsecured loans will help you decide.

Unsecured personal loans for general use

Unsecured personal loans are a popular choice since they don’t require using any of your assets, such as your bank account, vehicle, or home as collateral. They’re also very flexible since you can use the lump sum for almost any purpose.

However, since most banks and online lenders cap unsecured personal loans at 60 to 84 months, you'll likely need to seek out specialty lenders. You might also face limitations, such as needing stronger financials or being required to borrow a higher amount. Additionally, the Conference of State Bank Supervisors notes that state laws may limit or influence the loan terms lenders are able to offer.

BHG Financial offers unsecured personal loans with terms up to 10 years^1,2 for qualified professionals, with loan amounts up to $250,000.¹ This positions BHG among the few lenders offering both large loan sizes and extended terms¹ without requiring collateral.

Purpose-specific personal loans

If you’re borrowing funds for a specific purpose, such as a home improvement project or pool installation, some lenders will allow loan terms beyond 84 months. These products are often marketed as unsecured personal loans but may carry purpose restrictions, meaning you're required to use the funds for the designated project.

Before applying for one of these purpose-specific loans, verify whether the extended term offer requires documentation of use or restricts how you can spend the funds. If you need more flexibility for the funds (such as using a portion for debt consolidation), you might prefer to stick with a regular personal loan.

Secured home equity financing

If you can’t find the right unsecured personal loan with a 10-year term, consider borrowing against your home equity. According to the Nebraska Department of Banking and Finance, this is often a realistic option if you have at least 15% equity in your home.

HELOCs and home equity loans commonly offer repayment periods of 10 to 30 years, which is why they're often compared to long-term personal loans. A home equity loan provides a lump sum like a personal loan, while a HELOC offers a revolving line of credit during a set draw period (often 5 to 10 years), when borrowers may make interest-only payments, followed by a repayment period with principal and interest.

Because your home secures these products, they typically carry lower interest rates than unsecured options. However, that lower rate comes with a major tradeoff, as your home is collateral that your lender can take if you default.

Plus, there are a few other drawbacks. While home equity loans usually have fixed rates, HELOCs often have variable rates, leading to unpredictable payments and interest costs. You’ll also need to go through a much more extensive application process (including an appraisal) and pay closing costs of 2% to 6% of the loan amount.

Comparing HELOCs to personal loans can help ensure you pick the right option for you and your finances.

If you decide to take out a 10-year personal loan, expect to complete these three steps.

1. Prequalify to check term availability and pricing

Many lenders offer personal loan prequalification that doesn't affect your credit score. This step confirms whether a 120-month term is available for your financial profile and provides estimated rates and payments for comparison.

Keep in mind that prequalification results are preliminary estimates, and the final terms will depend on the results of the full underwriting process.

Tip: Understanding hard and soft credit inquiries and the typical rate-shopping window can help you shop confidently without worrying about hurting your credit score.

2. Select loan terms and review total costs

The annual percentage rate (APR) reflects both the interest rate and any origination fees (often 1% to 10% of the loan amount), making it the most accurate measure of a loan's true cost.

To find the best offer, compare APRs across lenders rather than the interest rates alone. If a lender charges an origination fee, it reduces your net proceeds—factor that into the amount you request. Also, carefully compare the costs for different loan terms, which we’ll demonstrate in the next section.

3. Complete underwriting and receive funds

Final approval requires undergoing the underwriting process and providing the lender with proof of your income, identity, and residence. You’ll need to prepare supporting documentation, such as:

• Proof of income: Pay stubs, 1099s, W-2 forms, tax returns.
• Proof of identity: Driver’s license, state-issued photo ID, passport
• Proof of residence: Utility bill, bank statement, mortgage or lease document

Once approved, you may receive your personal loan funds faster than with home equity financing (often one to two weeks), which requires a home appraisal and can take several weeks.

The tables below show monthly payments and total interest for a $100,000 loan given two different APRs and three term lengths. These are illustrative examples based on standard amortization math, so you’ll need to complete prequalification for specifics.

$100,000 loan at 12% APR:

Image is a representative example for illustrative purposes only and does not reflect actual customer information.

$100,000 loan at 18% APR:

Image is a representative example for illustrative purposes only and does not reflect actual customer information.

As the examples show, moving from 60 to 120 months cuts your monthly payment by 30% to 35% but roughly doubles the total interest paid at these APR levels. At 18% APR, the total interest cost for a 10-year term exceeds the original loan principal.

Tip: If your loan has no prepayment penalty, it might make sense to choose the 10-year term but pay off the loan early when your cash flow improves. This lets you benefit from the lower payment amount without necessarily paying the full amount of interest.

A 10-year loan term is best for those seeking a lower monthly payment, predictability, and flexibility.

Preserve monthly cash flow on large balances

Spreading a large loan over 120 months produces meaningfully lower monthly payments than a 60- or 84-month term. For six-figure earners seeking a personal loan to pay taxes, invest, or cover family expenses, that extra breathing room has real value. 

This is especially true for those with variable income, including:

• Physicians with seasonal patient volumes (such as during flu season)
• Attorneys with revenue tied to case outcomes
• Business owners with cash flow that fluctuates by quarter

Predictable payment and payoff date

A fixed-rate personal loan locks in your payment for the entire term. Unlike revolving credit lines or variable-rate loans, you know exactly what you'll pay each month from day one through the final payment. That predictability makes budgeting straightforward, regardless of changes in interest rates or the broader economy.

Flexibility to accelerate repayment

If your loan carries no prepayment penalty, you can opt for the lower 10-year payment and pay extra when cash flow allows. This preserves optionality, as you’re not locked into the higher payment of a shorter term and can still make extra principal payments to reduce your total interest costs and get out of debt sooner.

To avoid surprise costs, always verify the prepayment terms in your loan agreement before signing. BHG Financial personal loans carry no prepayment penalties.