Personal Loan
What is the maximum and minimum tenure for Personal Loans?
What is a Personal Loan tenure?
A Personal Loan tenure is the agreed period between the borrower and lender for repaying the borrowed sum, including the interest. This term directly impacts the monthly repayment amount and the total interest paid over the life of the loan. Lenders provide a variety of tenure options to accommodate different financial situations, offering significant flexibility to borrowers. Choosing the right amount of time to fully pay back your loan is important. The chosen tenure lets you balance your payments with what you can afford and what you want to achieve financially. This way, you can pay back the loan without hurting your financial well-being.
Maximum loan duration for Personal Loans
When you explore Personal Loans, you will find the maximum loan tenure for repayment. Here's what you should know:
- The repayment tenure ranges from 12 months to 60 months. However, Axis Bank offers a tenure of up to 84 months.
- You can choose a tenure that aligns with your budget.
- The repayment tenure directly impacts the EMI. Longer tenures mean lower EMIs and vice versa.
- If you want affordable EMIs, you can choose longer tenures, but that would also mean higher interest outgoes.
Advantages of maximum Personal Loan tenure
- Lower EMIs: The EMIs would be lower if the tenure is longer. This can make them affordable.
- Easy on your budget: Since the EMIs would be low, you can easily pay them without disturbing your budget considerably.
Disadvantages of maximum Personal Loan tenure
- Higher interest outgo: Each EMI contains a part of the interest payable for the loan. The longer the EMI is payable, the more interest is paid.
- Longer debt burden: A longer repayment tenure can result in being in debt to your lender for longer.
Minimum loan duration for Personal Loans
Just like a maximum tenure, there is a minimum tenure as well. Here's what you need to know:
- The minimum tenure depicts the minimum number of months for which you have to continue the loan.
- The minimum tenure ranges from 3 to 12 months. Axis Bank offers a minimum tenure of 12 months.
- Choosing a short repayment tenure would mean higher EMIs but quicker payments too.
Advantages of a minimum Personal Loan tenure
- Lower interest outgo: When you repay the loan quickly, the interest paid on the debt is also lower.
- Quicker debt repayment: You can get debt-free quicker when you choose a shorter repayment tenure.
Disadvantages of minimum Personal Loan tenure
- Higher EMIs: The EMIs for a shorter tenure would be high. This might affect you if you have a limited income.
- Financial strain: Higher EMIs can also disrupt your budget and cause a monetary strain.
Factors to consider while choosing a Personal Loan tenure
Monthly budget
Analyse how much money you earn and spend each month. This helps you figure out if you can afford to repay the loan quickly with higher EMIs. By opting for a shorter time to pay back the personal loan, you need to make sure higher EMIs don't stretch your budget too thin.
Financial goals
The objective of your loan can dictate how long the tenure should be. If you want to finish your debt fast, choose a shorter loan. However, if you have other bills to pay and need to keep your monthly payments low, a longer loan might be better. Look for loans that allow prepayments without a penalty in case you are able to close your loan sooner.
Loan purpose
If you need money for something that's only short-term, a quicker payback period might work best. But if you are planning something big that benefits from spreading out payments, like a major home improvement, then a longer payback time could make things easier.
Navigating interest rates and tenure
When you're looking at Personal Loans, it is important to know the interest rate and figure out how long you have to pay back the loan. A loan with a really long time to pay it back might look good at first as your EMIs will be lower. However, with a longer tenure you will end up paying more in interest.
On the other hand, if you pick the shortest time to pay back the loan, your EMIs will be bigger, but you'll end up paying less interest. You will have to figure out your priority: having lower monthly payments or paying less in interest over time. This decision is a big part of planning your money wisely.
Personal Loan maximum tenure vs. Personal Loan minimum tenure
Here's a comparative analysis between the minimum and maximum tenure of a Personal Loan:
| Parameters | Minimum tenure | Maximum tenure |
|---|---|---|
Duration | Usually up to 6 or 12 months | Usually up to 84 months |
EMIs | Higher | Lower |
Interest outgo | Lower | Higher |
Eligibility requirements | Usually allowed to borrowers having a good credit score, a stable and high income, and limited existing debts | Usually allowed to individuals with lower incomes and higher existing debts |
Conclusion
With the right approach, a Personal Loan can be a powerful tool in achieving your financial objectives. With a maximum Personal Loan amount of up to ₹40 lakhs and tenure options ranging from 12 to 84 months, Axis Bank caters to a diverse range of financial needs and repayment capabilities. Interest rate less than 1% per month, coupled with a swift, paperless online process and quick approval within 30 seconds, make Axis Bank the right choice for your personal financing solutions.
FAQs
Can I take a personal loan for 7 years?
The tenure of a Personal Loan depends on the lender that you choose. Most lenders offer a Personal Loan for up to 5 years. However, Axis Bank offers loans for tenures going up to 7 years.
Is it possible to get a personal loan for more than 10 years?
Usually, the maximum Personal Loan tenure is limited to 7 or 8 years. Getting a loan for more than 10 years might be difficult.
Can I get a personal loan for 20 years?
If you choose a Home Loan or a Loan Against Property, you can get a repayment tenure of 20 years. However, Personal Loans are available for a maximum tenure of 7 or 8 years.
Is a 15-year personal loan available?
Personal Loans are usually not offered for 15 years. You can, however, get a Home Loan or Loan Against Property for such a long repayment tenure.
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