When you take a loan, one of the most important factors to consider is the loan tenure—the length of time you have to repay the loan. Loan tenure directly affects your Equated Monthly Installment (EMI), overall interest paid, and your financial planning.
Vizzve Finance explains how loan tenure works and helps you choose the right repayment period.
What is Loan Tenure?
Loan tenure is the duration over which you agree to repay the loan amount along with interest. It can range from a few months to several years depending on the loan type.
How Loan Tenure Affects Your EMI
Longer Tenure = Lower EMI: Spreading repayments over a longer period reduces monthly payments, making them more affordable.
Shorter Tenure = Higher EMI: Repaying faster means higher monthly installments but less interest paid overall.
Impact of Loan Tenure on Total Interest Paid
A longer loan tenure increases the total interest paid over the loan’s life.
Shorter tenures reduce interest but require higher EMIs.
Choosing the Right Loan Tenure
Consider your:
Monthly income and expenses
Other financial obligations
Long-term financial goals
Comfort with monthly EMI amounts
Example: Impact on EMI and Interest
| Loan Amount | Tenure | EMI (Approx.) | Total Interest Paid |
|---|---|---|---|
| ₹5,00,000 | 2 years | ₹23,000 | ₹52,000 |
| ₹5,00,000 | 5 years | ₹10,600 | ₹1,36,000 |
Tips to Manage Your Loan Tenure
Opt for a tenure that balances affordability and cost.
Consider prepayment options to reduce tenure and interest.
Review your financial situation periodically and adjust if possible.
How Vizzve Finance Supports Flexible Loan Tenures
Vizzve Finance offers customizable loan tenures with transparent EMI calculations to fit your budget and financial goals.
FAQs
Q1. Can I change my loan tenure after approval?
Some lenders allow tenure adjustments; check terms with your provider.
Q2. Does a longer tenure always mean more total cost?
Generally yes, due to more interest over time.
Q3. How does loan tenure affect credit score?
Timely payments over any tenure build positive credit history.
Q4. Does Vizzve Finance offer tools to calculate EMI for different tenures?
Yes, we provide online EMI calculators for easy planning.
Published on : 10th August
Published by : SMITA
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