What are the Personal Loan maximum and minimum tenures?

Updated on: 18 Sep 2024

The personal loan minimum tenure and the maximum tenure are important factors to consider while getting a loan. It is one of the easiest credit instruments you can get from any bank, NBFC, or financial institution.

This collateral-free loan offers advantages like an easy online application and no end-use restrictions. However, the online personal loan needs to be repaid on time and the ease you enjoy while doing so depends on the tenure you choose.

The personal loan maximum duration offered to you differs from lender to lender. However, simply choosing the minimum or maximum personal loan tenure options isn’t a wise move. There are certain advantages that you can get when you choose a shorter repayment timeline.

Here is a snapshot of the pros and cons of choosing the maximum vs minimum tenure:

Maximum Tenure	Minimum Tenure
Results in a lower EMI amount	Results in a higher EMI amount
Takes longer to repay the loan	Repayment is completed faster
Leads to higher overall interest payment	Leads to lower overall interest payment
Attracts a higher interest rate	Attracts a lower interest rate
Helps you build a credit score with ease	Helps you become debt-free faster

Read on to know all about the maximum and minimum tenures of personal loans and why you must keep them in mind when planning your loan.

Personal Loan Minimum Tenure

In general, the personal loan minimum tenure offered by banks is 1 year or 12 months. However, digital lenders or NBFCs may offer you a shorter repayment window. At Fibe, you can repay your instant personal loan as quickly as 3 months.

Choosing the minimum tenure can help you in many ways. Firstly, it allows you to repay your debt faster and be free of EMIs. Secondly, it enables you to pay less as your total interest since the personal loan interest increases when your repayment duration is longer. However, a shorter tenure can lead to higher monthly instalments, so choose it based on your income and expenses.

Also Read : What are the benefits of a personal loan

Personal Loan Maximum Tenure

A majority of financial institutions offer a personal loan maximum tenure of about 5 years or 60 months. This usually applies when the loan amount is also high. At Fibe, the personal loan maximum duration is 36 months, as you can get a loan of up to ₹5 lacs.

Choosing a long-tenure personal loan can be an intelligent move when you want to spread your EMIs across more time. This makes your instalments more pocket-friendly and eliminates stress from the repayment equation. However, a longer tenure leads to higher total interest dues. So, choose your tenure carefully while keeping savings and ease of repayment in mind.

Factors to Remember When Choosing Your Personal Loan Tenure

Here are some factors to consider regarding the loan duration:

Loan-to-Income Ratio

When you take a loan, your total EMIs cannot be more than 50% of your monthly earnings. Keep this in mind when choosing your personal loan tenure.

Existing Monthly Expenses

If you have multiple existing loans or high monthly expenses, choosing a longer repayment window may be easier on your finances. This prevents you from missing or delaying your EMIs, which can harm your credit score.

Rate of Interest

The rate of interest and tenure of a personal loan usually go hand in hand. This means that a lengthy tenure results in a higher interest rate from lenders and vice versa. Weigh this fact when choosing your tenure.

Loan Amount

Choose your tenure as per the loan amount based on your earnings and obligations. While you can repay a lower amount quickly, you may want to take your time paying back a higher loan amount.

Ways to Increase the Personal Loan Tenure

Choosing a longer repayment tenure for your loan is a great way to reduce the EMI amount and make the repayment easier. Here are 2 ways to get a longer repayment term:

Requesting the Financial Institution

You can request the financial institutions through which you got the loan to extend the repayment tenure
You can support your case with your income proofs and expenses
Proving that repaying the existing EMI amount is difficult for you can help you get the tenure extended

Going for a Personal Loan Balance Transfer

To get suitable loan terms, you can shift your loan to another lender that offers a longer repayment tenure
This will make repayment easier and you will get room for other expenses
With timely repayment, your credit score can also increase

Choosing between a personal loan’s minimum and maximum tenure is simple once you consider the above-mentioned factors. With a flexible personal loan tenure from lenders like Fibe, you can repay your Instant Cash Loan conveniently.

To choose a suitable tenure for your loan, use the free online personal loan EMI calculator available on our app or website. For maximum ease of use, simply download our Instant Loan App and enjoy speedy access to funds.

FAQs on Personal Loan Tenure

What is the maximum tenure to repay a personal loan?

At Fibe, you can choose a repayment period of up to 36 months.

How much time is required to get a personal loan?

This depends on the lender you choose. Fibe offers personal loans of up to ₹5 lacs within 2 minutes.

Can I get a personal loan for 7 years?

Yes. Some lenders offer long-term personal loans. However, these loans are usually short-term and you generally repay in up to 5 years.

What is the shortest tenure of a personal loan?

This depends on the lender you choose. The minimum tenure for Fibe’s loans is 3 months, and this is usually considered among the shortest repayment durations.