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HOW TO CHOOSE IDEAL TENURE TO REPAY YOUR LOAN?


Nowadays, there is a wide range of secured and unsecured types of loans offered by various financial as well as lending institutions which can be avail against your credit worthiness and personal or professional asset. The loan money can be used to fulfill your different business and personal requirements which include capital needs, fulfilling medical emergencies, purchasing a home or vehicle as well as planning wedding etc.

The secured loans such as Home Loan, Loan against Property and Gold Loan are very popular as they are offered on lower rate of interest because they demand collateral while you "Apply For Loan" as well as they can be obtained easily without any rejection. One of the significant factors to look after other than rate of interest is loan tenure that really impacts your borrowing capacity.

Well, the question that keep hitting your mind before availing a loan should be the ideal tenure for your loan repayment or which loan term you should avail whether long term or short term loan and how it can reduce your borrowing costs? In this blog post, we have listed some of the factors that can help you to choose ideal tenure to repay your specific loan.

Loan Quantum: The principal amount you want to secure against your loan directly impacts the repayment period. More will be the loan money; higher will be the tenure of loan. The benefit of long term loan is that it eases the EMI payment as installments are equally distributed throughout the repayment duration.

However, long tenure eases the installments but the interest charges outgo increases with the longer repayment period. One can avail a loan for maximum period of 15-20 years.

Age: Your age is also an important factor that will help you to decide an ideal tenure of your particular loan. If you are in your early years such as in your 20’s or 30’s with a stable income source, you can easily pick up a longer loan tenure whereas if you are near to your retirement age, you should opt for a short term loan whether you have steady income or limited sources of earnings.

Interest rate and EMI: These two factors have a significant role in making up your borrowing costs lower or higher whether you "Apply For Loan Online" or offline. Therefore, if you want to enjoy lower EMI payments, you should select a loan with longer tenure and if you want to have a lower interest outgo, you can choose high EMI payments to pay off your loan faster with shorter tenure to get rid of debt burden.

In addition to that, there are several online platforms which help you to calculate your monthly installment via EMI calculator where you can plan your EMIs for different tenures and find a best deal that could be pocket-friendly. At ShubhBank, you can compare the best offers on EMI payments as well as loan tenures in one place and pick the great deal depending upon your eligibility and repayment capability.


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