Question

What are the benefits of a long term loan?

select all that apply.
a), you have a lower monthly payment
b), you have longer to pay it.
c), you can borrow more money.
d), you can pay it off quickly.
c), you will pay fees.

Answer 1

The possible answers I can think of is that *you have a lower monthly payment* and that *you have longer to pay it*.

Answer 2

The correct options are: A - B

A short-term loan is a type of loan that must be repaid within a maximum period of one year. For its part, a long-term loan is one that has a maturity of more than one year, that is, it can be repaid in installments whose payment period exceeds twelve months. By offering the option of returning it over a long period of time, allows you to choose the number of installments with which we will feel more comfortable paying. Long-term loans are better adapted to the solvency capacity of each user.

In many cases, contracts for long-term loans can be modified or renegotiated.