What is the Maximum & Minimum
Tenure for a Personal Loan?

Personal loan tenure means the period during which you must repay the loan, including the principal amount and interest. The loan tenure directly impacts your monthly EMI and the total interest you'll pay over the life of the loan. The right tenure strikes a good balance between affordability and keeping the cost of borrowing at an optimum level. Therefore, understanding the maximum and minimum tenure options is crucial when choosing a personal loan. SMFG India Credit offers flexible loan tenures to suit various financial needs and repayment capabilities.

Personal Loan Maximum Tenure

Personal loan maximum tenure is typically up to 5 years or 60 months. However, some lenders can extend this period to 7 years (84 months) or longer. SMFG India Credit offers personal loans with a maximum tenure of up to 5 years*. This extended repayment period allows borrowers to manage larger loan amounts with lower monthly EMIs. However, it's important to note that a longer tenure means paying more in total interest over the life of the loan.

Personal Loan Minimum Tenure

The minimum tenure for personal loans is usually around 12 months or 1 year. Similar to the personal loan maximum tenure, some lenders can offer minimum tenures as short as 3 months. SMFG India Credit provides personal loans with a minimum tenure of 12 months. Shorter loan tenures result in higher monthly EMIs but less overall interest paid. This option is suitable for borrowers who can afford higher monthly payments and want to clear their debt quickly.

Factors to Consider while Choosing a Personal Loan Tenure

When choosing a personal loan tenure, consider the following factors:

• Monthly Income and Expenses: Determine how much you can comfortably allocate towards loan repayments each month without straining your budget. Consider how the loan repayment will affect your income, existing financial commitments, and future goals.
• Loan Amount: Larger loans may require longer tenures for manageable EMIs. Smaller loans can be repaid faster with shorter tenures to minimise the interest costs.
• Personal Loan Interest Rates: Longer tenures accumulate more interest costs over time. Compare different lenders to find the most suitable interest rate and loan tenure combination.
• Age: Younger borrowers might opt for longer tenures, while those nearing retirement may prefer shorter ones.
• Prepayment Options: Check if early repayment is allowed without prepayment penalties. If you anticipate having extra funds, a shorter tenure with a prepayment option might be beneficial.

Use SMFG India Credit's personal loan EMI calculator to compare different amount, tenure, and interest rate options and their impact on your monthly payments and EMI calculation.

Common Long-time Personal Loan Tenure

Common long-term personal loan tenures typically range from 3 to 5 years. These extended repayment periods are popular among borrowers seeking larger loan amounts or those who prefer lower monthly EMIs.

SMFG India Credit offers personal loans of up to INR 30 lakhs* with tenures of up to 5 years*, allowing borrowers to spread their repayments over a longer period. This can benefit major expenses like home renovations, weddings, or debt consolidation. However, it's crucial to consider the higher total interest paid over the longer tenure when making your decision.

Feel free to get in touch with us or visit your nearest SMFG India Credit branch to determine the best personal loan solution for your needs.

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