Loan tenure is not just about EMI duration—it’s about interest outgo, cash flow, and future flexibility.
Whether you're opting for a personal loan, home loan, or car loan, choosing the right repayment period can save you lakhs in the long run.
Here’s how to decide the best loan tenure for YOU — based on income, loan amount, and long-term goals.
What Is Loan Tenure?
Loan tenure is the total repayment period for a loan — usually measured in months or years.
Short Tenure = 6 to 24 months
Long Tenure = 36 to 60 months or more
Key Outcome:
Shorter tenure = higher EMI, lower interest
Longer tenure = lower EMI, more interest paid
Factors to Choose the Best Loan Tenure
✅ 1. Your Monthly Income
If your salary is stable and you can afford higher EMIs → Choose a shorter tenure
For freelancers or variable income → Go with longer tenure
✅ 2. Loan Amount
Small loans (₹50K–₹2L): best with shorter tenures
Big loans (₹10L+): safer with longer tenures
✅ 3. Interest Rate
Higher interest rate? Go for shorter tenure to reduce total outgo
Lower interest rate? You can stretch the tenure for cash flow flexibility
✅ 4. Future Financial Goals
Planning for marriage, kids, travel, or business?
Then keep EMIs lower now with longer tenure and pre-close when ready
✅ 5. Prepayment Flexibility
With Vizzve, many lenders allow zero or minimal prepayment charges
So you can pick a longer tenure now and close early if income increases
EMI & Interest Comparison Example
Loan Amount: ₹5,00,000 | Interest Rate: 12%
| Tenure | EMI (₹) | Total Interest Paid (₹) |
|---|---|---|
| 12 months | ₹44,412 | ₹32,946 |
| 36 months | ₹16,607 | ₹97,860 |
| 60 months | ₹11,122 | ₹1,67,328 |
💡 Insight: Choosing 36 months over 60 months saves you ₹69,468 in interest.
Why Use Vizzve to Choose Loan Tenure?
📈 Built-in EMI calculators for real-time comparison
⚖️ Compare tenures across multiple lenders instantly
🔁 Flexible repayment & refinancing options
💡 Get expert help choosing tenure based on your actual income + goals
FAQs –
Q1. Can I change the loan tenure after loan approval?
Usually no, but you can refinance or pre-close with Vizzve support.
Q2. Is shorter tenure always better?
Only if you can handle high EMIs comfortably.
Q3. What’s the ideal tenure for a ₹2 lakh personal loan?
12–24 months if income is stable. Avoid dragging small loans longer.
Q4. How can Vizzve help me choose?
Our advisors + tech tools match the best tenure to your EMI capacity with future savings in mind.
Published on : 22nd July
Published by : SMITA
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