Personal Loan Tenure: The Overlooked Factor Shaping Your Loan's Cost

• Loan tenure is the length of time agreed upon to repay a personal loan, typically 1-5 years in India.
• Shorter tenures result in higher EMIs but significantly lower total interest paid over the loan's lifetime.
• Longer tenures lead to lower EMIs but increase the total interest cost due to extended repayment periods.
• Borrowers should choose a tenure based on their monthly budget and the loan's purpose, not just the lowest EMI.
• Tenure can often be shortened later through part-prepayment or full prepayment if financial circumstances improve.

Why It Matters: Proper loan tenure selection is key to affordable EMIs and lower overall loan costs.