How Long Do You Have to Pay off a Personal Loan?

••• Stockbyte/Stockbyte/Getty Images

A personal loan is typically an unsecured loan you can get for various purposes. Loan amounts, rates and repayment terms vary based on the lender and your credit qualifications. Personal loan terms commonly range from one year to five years. If you take out a five-year term loan, your monthly payments are relatively low, but the interest paid over time is relatively high when compared with a shorter-term loan.

Additional Information

Some banks offer different loan terms based on the amount borrowed. For instance, you might have to repay a large loan amount in three years if you have only average credit. Personal loan amounts usually aren't as high as loans for secured assets, such as homes, because of the increased risk to the lender. The interest rate and loan decisions are based on your credit score and income.