When you're trying to decide on the tenure for your loan, the factors that will affect your decision is your budget - and your ability to service the loan. Clearly if you're nearing retirement, you'll need a shorter tenure but longer tenures will help you to make the monthly payments more manageable because you pay over time instead of upfront.
Just like any other loans, may it be a loan from a licensed money lender, Medium-term loan has its' pros and cons.
Among the benefits you can have are:
1. Set monthly fees
2. Fixed interest rates
3. Improved Credit score
4. Many uses covered since term loans can be used for a variety of purposes.
However its' drawbacks are:
1. Longer application process.
Hope this helps.
1. Need not pay more interest for your load
2. You can complete your loan in short period. Responsibility is over
3. You can take other loan if you need in future
1. Normally banker is charging higher rate of interest for Medium Term loan
2. You will not get get Tax benefit for Medium Term loan
3. There is a risk if we fail to pay within the allotted period.