One of the easiest credit instruments you can get from any bank or NBFC is a personal loan. This collateral-free loan offers advantages like an easy online application and no end-use restrictions. However, it needs to be repaid on time and the ease you enjoy while doing so depends on the online personal loan tenure you choose.
The personal loan maximum duration offered to you differs from lender to lender.
Here is a snapshot of the pros and cons of choosing the maximum vs minimum tenure:
|Results in smaller EMIs
|Results in larger EMIs
|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
However, simply choosing the personal loan max tenure isn’t a wise move. There are certain advantages that you can get when you choose a shorter repayment timeline.
Read on to know all about the maximum and minimum tenures of personal loans and why it is important to keep them in mind when planning your loan.
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 personal loan 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 the longer your repayment duration is. However, a shorter tenure can lead to higher monthly instalments, so choose it based on your income and expenses.
From a majority of financial institutions, you can get 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 lengthy tenure for your loan can be an intelligent move when 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 keeping savings and ease of repayment in mind.
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.
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.
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.
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.
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 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.
At Fibe, the personal loan maximum tenure you can choose goes up to 36 months.
You can get a personal loan of up to ₹5 lacs within 2 minutes at Fibe.
Yes, certain lenders offer personal loans that you can repay over 7 years. However, personal loans are usually short-term loans that you can generally repay in up to 5 years.
Fibe’s personal loan minimum tenure is 3 months and this is usually considered among the shortest repayment durations. However, you can also repay certain salary loans in a month.
Yes, when applying with Fibe, you foreclose your personal loan at zero charges.
This differs from one lender to another but usually, you can repay a personal loan in up to 96 months or 8 years.