Emergencies come unannounced and there is no way you can be prepared for all of them. Anyone might require a personal loan to help to take care of financial requirements in such situations.
The amount you need and the maximum tenure offered by lenders will vary. Continue reading to know more about this.
Personal loans are generally unsecured loans given by banks, NBFCs, or other organizations. They have to be returned in small monthly installments over a fixed duration of time. This duration is referred to as the “tenure” of the loan.
The maximum tenure offered under personal loan is decided by the creditor based on the applicant’s creditworthiness, the amount borrowed, and other factors. In some cases, the lender will offer multiple tenure options to the borrower.
The first thing to understand is the loan tenure and the EMIs are inversely correlated; the longer the tenure, the lower the monthly installments will be. But this will have a negative impact on the amount of interest paid.
At the same interest rate, you will end up paying more money as interest if you choose a longer tenure. That is why, it is better to choose the shortest possible tenure depending on your income and other liabilities. You can check your tenure, EMI, and interest amount using this EMI calculator.
A personal loan can have a term as long as 60 months, with a minimum of 3 months. Some banks even offer a maximum tenure of 72 months. However, personal loan tenure depends on the borrower's income, credit history, and needs. These main elements affect the loan's term, amount, interest rate, and monthly payment.
The borrower's retirement age and job status are also taken into consideration by the bank or financial institution in addition to these factors.
We, at moneyview, offer personal loan tenure maximum of 60 months or 5 years.
In most cases, you will have 12 months as the minimum tenure for personal loans. The maximum tenure can vary depending on the loan amount and your monthly income and other liabilities.
There are several types of personal loans available today. Instant personal loans have varying tenures. Some online lenders are offering loans for a minimum tenure of one month.
Depending on the lender and the type of personal loan availed, the minimum tenure varies.
Your loan provider has the choice to increase the length of time you have to repay an existing debt. While some lenders are more accommodating than others, it is ultimately up to them.
There may be extension programs available that are designed explicitly to help if you are facing financial difficulties.
The only method to extend your loan is by getting in touch with your lender. You can carry out this action on the phone, in person, or online.
When speaking with a representative, describe your circumstance and inquire about extending your loan. You can find out the choices for you.
Since the personal loan maximum tenure will have a direct impact on the monthly installments, you should be very careful before deciding it. If you have the option of choosing between multiple tenures, here are a few factors to consider -
Having a clear idea about your monthly income and expenditures is crucial before opting for a loan. You must keep in mind all your existing liabilities, including any current EMIs that you need to pay.
After carefully considering all of these, you should decide how much money you can comfortably pay every month. Then decide the loan tenure based on that.
If you are about to switch jobs or have an appraisal or promotion that is about to come up, consider that as well. This would mean that you can increase your EMI amount a bit, and opt for a shorter tenure.
You also need to consider the potential interest amount before deciding the tenure. Depending on the interest rate and the tenure, you can see how much interest you will have to pay eventually.
The loan amount is the biggest precursor of deciding your tenure. If you have a bigger loan amount, it makes sense to have a longer tenure so that you can pay your monthly EMIs with ease. However, you should also know that the overall interest amount paid will be higher in this case.
Ensure that your repayment strategy takes into account any outstanding debts. The best course of action in this circumstance would be to choose a duration that enables you to pay off your current debt as well as the EMIs on your personal loan without putting undue strain on your income.
If the tenure is comfortable, so will the monthly EMI. This will lead you to repay the full loan amount without any trouble.
Make sure to consider all facets before deciding your loan tenure. A well thought out decision will lead to the loan being paid in full, leading to a good credit score. At moneyview, we wish to offer as much flexibility as possible which is why we offer multiple tenure options based on your eligibility.
Yes. Some lenders offer a personal loan maximum tenure of 6 years. You can also request a longer tenure.
Some lenders provide six, seven, or even twelve-year payback schedules. Personal loans can be useful if you suddenly need money to cover a large bill. Of course, it's crucial to keep in mind that you would have to pay interest on any money you borrowed.
By submitting an application to your present lender or obtaining a balance transfer, you can lengthen the term of your personal loan.
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