Answer:
The shorter the payment period, the better for the borrower. Every time you make a payment, the principal decreases, so the next payment will include lower interests.
We can analyze this using an example:
You borrow $10,000, with a 12% interest rate and must pay it back in 3 years.
option A, 36 monthly payments
monthly payment = $10,000 / 30.10751 (PV annuity factor, 1%, 36 periods) = $332.14
total payments = $332.14 x 36 = $11,957.04
total interests paid = $1,957.04
option B, 3 annual payments
monthly payment = $10,000 / 2.40183 (PV annuity factor, 12%, 3 periods) = $4,163.49
total payments = $4,163.49 x 3 = $12,490.47
total interests paid = $2,490.47