A loan term is the length of time you have to repay a loan in full, from the first payment to the last. A longer term usually means smaller individual payments but more total interest paid.
The loan term is the agreed period over which a loan is scheduled to be repaid, often stated in months or years or as a number of payments. The term works together with the principal and the interest rate to determine the size of each payment and the total interest paid over the life of the loan. A longer term generally lowers each payment but increases the total interest, while a shorter term raises each payment but reduces the total interest. On an installment loan, the term is set when the loan is originated, so the full schedule of payments and the final payoff date are known in advance.
