When it comes to loans, we’re taught to look at two things:
Interest Rate and EMI Amount.
But there’s one silent killer that most people overlook — Loan Tenure.
Let’s break it down with Vizzve Finance.
Because a wrong decision today can cost you lakhs tomorrow.
⏳ What is Loan Tenure?
Loan tenure is the duration for which you agree to repay your loan — commonly in months or years.
🏦 Personal Loans: 12 to 60 months
🏠 Home Loans: 5 to 30 years
🚘 Auto Loans: 3 to 7 years
Sounds flexible, right? But the longer the tenure, the more you pay overall.
💣 The Misunderstanding Most Borrowers Make
Many people choose longer tenures to keep EMIs low.
But here’s the trap:
✔️ Low EMI ≠ Low Total Repayment
Example:
₹5 lakh loan at 12% interest
3 years = ₹1.00 lakh interest
5 years = ₹1.68 lakh interest
That’s ₹68,000 more for just 2 more years!
📉 Why Longer Tenure Is More Expensive
💸 Compound Interest builds up over time
📈 Each month adds more to your cost
🧾 You pay interest first, principal later (especially in early EMIs)
💥 Shorter Tenure = Higher EMI, But Lower Cost
If you can afford a slightly higher EMI, you save big.
Rule of Thumb:
"Choose the shortest tenure with an EMI you can comfortably manage."
⚠️ But Don’t Go Too Short Either
Too short a tenure can strain your monthly budget and risk:
EMI defaults
Credit score damage
Late payment penalties
💡 Vizzve’s Smart Tenure Tip:
Use the Vizzve EMI Calculator to compare total interest on:
📅 3 years
📅 5 years
📅 7 years
You’ll be surprised how much you save just by tweaking tenure!
✅ Vizzve Finance Helps You Borrow Better
With Vizzve, you get:
📊 Transparent EMI and tenure options
💬 Expert support to choose the right plan
🔍 Zero hidden charges
💼 RBI-approved lender partnerships
💬 FAQs
1. Is longer loan tenure always bad?
Not always — but longer tenures cost more overall. Choose based on EMI affordability, not comfort alone.
2. Can I change my loan tenure later?
Some lenders allow tenure restructuring. But it may involve charges or fresh documentation.
3. What’s the best tenure for personal loans?
Usually, 3–4 years offers a good balance of EMI comfort and lower interest.
Published on : 17th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.