banner image can we change tenure of personal loan

Can We Change the Tenure of a Personal Loan? What You Need to Know?

December 22, 2023 • 868 views

The emergence of several new age lenders has boosted the demand for Personal Loan in India. Alongside this, there is an improvement in lending services such as online submission of documents, quick approval and disbursal, flexible loan tenure, etc. As a borrower, you must always keep an eye on all the provided services.

While applying for a loan, you must assess the tenure and interest rates to analyse the ideal EMI amounts in order to make repayment more comfortable. The longer the tenure, the higher the interest payment and vice versa.

However, can you change the tenure of a Personal Loan after loan approval? Let's find out!

What Do You Mean by Personal Loan Tenure?

Personal Loan tenure is the time you take to repay a loan amount. The repayment tenure is decided as per the loan amount and interest rate. Understanding the maximum and minimum loan tenure is crucial before you apply for a Personal Loan.

A shorter tenure means shortened financial liabilities, whereas a longer repayment tenure means lower EMIs and a comfortable repayment schedule.

Can You Change the Tenure of a Personal Loan After Approval?

Unlike secured loans, lenders are usually not very flexible with the terms and conditions of Personal Loan. However, some lenders allow alterations in the terms and conditions. New age NBFCs such as Poonawalla Fincorp allow prepayment of Personal Loans at a prepayment fee*.

Note* Please check all the terms and conditions before applying for a Personal Loan.

Factors Influencing Personal Loan Tenure Changes

The following factors can influence your loan tenure changes:

Monthly Income

Your monthly income determines a lot about your repayment capacity. Hence, the better the ratio between income and EMI amount, the higher the chances of your tenure rescheduling request getting approved.

Repayment History

A poor repayment history shows low creditworthiness and results in the rejection of your request. On the other hand, a good repayment history will increase your chances of getting the loan tenure change request approved. The same will be reflected in your credit score.

How to Request a Change in Personal Loan Tenure?

There are a few ways to request a change in Personal Loan tenure. Check them out below:

Contact Your Lender

The first option is to contact your current lender to extend or shorten the tenure by applying. Remember that you need to state valid reasons and provide supporting evidence.

Explore Refinancing Options

If your current lender doesn't offer or approve loan tenure alternation, the second option would be to consider loan refinancing options. You need to transfer your balance to another lender offering this service. Sometimes, this also results in a lower interest rate, a plus point.

Implications of Modifying Personal Loan Tenure

If you are considering modifying Personal Loan tenure, you need to know the implications first:

Impact on Monthly Instalments

Depending upon the reduction or extension of loan repayment tenure, your EMIs will increase or decrease. Hence, consider your financial obligations and long-term goals before you apply for any modification in your Personal Loan tenure.

Effect on Interest Payments

The longer the repayment tenure, the higher the interest outgo and vice versa. This is a crucial point to consider while applying for loan tenure rescheduling. It is advised to repay your loan as soon as possible for lower interest payments and to avoid financial liabilities.

Also Read - Online Tips on Choosing the Right Tenure for a Personal Loan

To Conclude

Can we change the tenure of a Personal Loan? Yes, we can. But there should be careful considerations before applying for the same. While some lenders might allow it, some might not have any provision regarding this at all. Hence, contact your lender first and check if they have the facility.


We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

Trending Topics

Contact Us logo Quick Apply CIBIL Score logo Free CIBIL Whatsapp logo Connect on WhatsApp