The loan term refers to the period within which a borrower agrees to repay a loan in full, including interest. Loan terms can vary greatly, from a few months to several decades, depending on the loan type and lender requirements. For example, personal loans may have terms of 1-5 years, while mortgages often range from 15 to 30 years. The loan term affects the monthly payment amount and total interest paid over time. Longer terms lower monthly payments but increase interest costs, while shorter terms reduce interest but raise monthly payments.