Are you finding it challenging to determine a suitable Personal Loan tenure? While applying for a loan, choosing an appropriate tenure is crucial. This is because a more extended duration increases the interest you pay. A shorter duration can potentially create a financial burden as the high EMIs are high. Read on to know the maximum and minimum Personal Loan tenure and factors to consider when choosing the Personal Loan tenure.
What is a Personal Loan?
A Personal Loan is an unsecured form of credit that you can use to fulfil your urgent financial needs. It has no limitation on the end use of funds. The eligibility for a Personal Loan includes a CIBIL score over 700 and a stable job with a net salary of Rs. 30,000 or more to get a Personal Loan.
Maximum and Minimum Personal Loan Tenure
The maximum tenure for a Personal Loan is 60 months. It will allow you to have a low EMI amount, but the interest charged is higher. Simply put, as the tenure is longer, you pay more interest. However, a shorter tenure increases your EMI amount. So, planning is essential before opting for a short repayment tenure, as it can significantly increase your financial burden. You must choose a repayment plan that suits your budget and financial goals.
Factors to Consider While Choosing a Personal Loan Tenure
Some factors that you must consider while choosing a Personal Loan Tenure are mentioned below:
- Monthly Income vs Monthly Expenses: Make a note of all the monthly expenses you must cater to calculate the EMI amount to be paid each month.
- Debt-Income Ratio: The debt-to-income ratio should ideally not be more than 30-35%, or else repaying the loan would create a financial burden. Choose a tenure that keeps your EMI and debt-to-income ratio in check.
- Interest Rate: If the interest rates are high, it makes sense to have a higher tenure so that the EMI is lower and there is less pressure on your monthly finances.
- Monthly EMIs: Use a Personal Loan EMI calculator to calculate your EMI and understand your loan repayment.
- CIBIL Score: Your credit score makes a huge difference to the interest rate, tenure and other loan conditions that you get. Always ensure your credit score is above 700 to be eligible for a Personal Loan. However, a score above 750 will help you to get a loan with better terms.
ALSO READ :- Check Your CIBIL Score Online To Get A Personal Loan
Ways to Increase the Personal Loan Tenure
You can follow two ways to increase your Personal Loan
Tenure:
1. Written Application: You can
write an application and request your lender to increase your
repayment tenure. Mention the reason and attach all the supporting
documents and evidence. This would improve the chances of getting
your request approved.
2. Transferring Loan
Amount: Secondly, you can transfer the balance of your loan
to a different lender. This will allow you to choose a longer tenure
for repayment with the second lender.
To Conclude
Knowing the maximum and minimum Personal Loan tenure is essential before you apply for the loan. It lets you manage your monthly budget and achieve your financial goals. It is necessary to carefully evaluate your options based on monthly payments, interest rates, and future financial goals before opting for a Personal Loan. With a Personal Loan at Poonawalla Fincorp, you can get up to Rs. 30 Lakh with favourable terms. The interest rates start at just 9.99% per annum with a repayment tenure of up to 60 months, ensuring affordable EMIs. Before you apply for a Personal Loan, check CIBIL Score for Free.
Frequently Asked Questions Personal Loan Tenure
1. What is the maximum personal loan
tenure?
The maximum tenure for repaying a Personal
Loan is 60 months.
2. What is the minimum tenure to repay a personal
loan?
The minimum tenure of repaying a Personal Loan
is 12 months.
3. How much can I get through a Personal
loan?
You can get up to Rs. 30 Lakh through a personal
loan, and the interest rates start at just 9.99%.
4. What minimum CIBIL score is required to get a
personal Loan?
You must have a minimum CIBIL score
of 700 to be eligible. However, a score of 750 will increase your
chances of getting more favourable terms on your credit.