long-term loans

A long-term loan is a type of financing where a borrower receives money from a lender and agrees to repay it over an extended period, typically beyond one year. These loans are commonly used for significant investments like buying a home, a car, or funding business expansion. The borrower makes regular payments, which include principal (the original amount borrowed) and interest (the cost of borrowing). Because of the longer repayment schedule, long-term loans often have lower monthly payments but may include more interest over time. They provide financial flexibility for large, longer-term expenses or investments.