While applying for a loan be it a personal or home loan you need to carefully choose your tenure. So what is tenure in loan? I will explain in simple words. Loan tenure means the amount of time you will require to repay the loan along with the interest. Generally, a home loan tenure can be between 5-20 years. But there are some banks that extend the tenure up to 25 years. In a personal loan, the tenure can be between 3-7 years. This is the definition of what is loan tenure.
Things to remember when applying for a loan that impacts the tenure:
Loan amount
The less the loan amount is, the less would be the tenure. We should always calculate the amount we need as a loan and then apply for the loan. Although it is not a bad option to choose a loan with longer tenure. The longer the tenure the lesser would be the EMI. So, it will help balance your other monthly expenses smoothly.
Rate of Interest
You should always check the rate of interest. As said earlier the rate of interest can affect your tenure. If the interest rate is on the lower side it will automatically bring down the tenure in the long run.
Credit score
You have to keep a decent CIBIL score to secure a home loan. There is no point in checking the tenure if an individual has a poor CIBIL score. A CIBIL score of 580 is considered moderate. You can increase your CIBIL score by paying the bills on time and then apply for a home loan.
Read the answer on
How To Get Loan With Low CIBIL Score?
In conclusion, we should never ignore looking at tenure while securing a loan. Tenure plays a very important role in all kinds of loans.
I hope you understand what is tenure in loan.
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What is tenure in loan?
sarayu
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2 Year
2022-02-28T20:40:27+00:00 2022-02-28T20:40:28+00:00Comment
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