Tenure
The duration of the loan — the agreed period within which the borrower must repay.
Apply for a LoanWhat is Tenure?
Loan tenure (also called loan term) is the agreed time period within which a borrower must fully repay the loan — including principal and interest — through regular EMIs. Tenure is measured in months or years. Longer tenures result in lower monthly EMIs but higher total interest paid; shorter tenures have higher EMIs but lower total interest cost. The right tenure depends on your monthly cash flow and how much total interest you are willing to pay.
Example
₹15 Lakh loan at 9% p.a.: 5-year tenure = EMI ₹31,126, total interest ₹3.7L. 10-year tenure = EMI ₹18,999, total interest ₹7.8L. 20-year tenure = EMI ₹13,497, total interest ₹17.4L. Choosing 20 years saves ₹17,629/month but costs ₹13.7L more in total interest.
Frequently Asked Questions
What is the maximum loan tenure for home loans in India?
Maximum home loan tenure in India: salaried employees — up to 30 years (or until age 60–65 at maturity, whichever is earlier); self-employed — up to 20–25 years. Most construction loans have a maximum tenure of 20 years. Personal loans: maximum 5 years. Business loans: 5–7 years. Equipment finance: 5–7 years. Working capital: 12–36 months.
Should I choose a longer or shorter loan tenure?
Choose a shorter tenure if: you can afford higher EMIs, you want to minimize total interest paid, your income is stable and high relative to EMI. Choose a longer tenure if: you need lower EMIs for cash flow flexibility, you plan to make prepayments when income increases, or the interest rate differential is small. A practical approach: take a 20-year loan for lower EMI, then make annual prepayments of ₹1–2 Lakh to effectively reduce the tenure and save interest.
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