IN SIMPLE WORDS
Loan tenure is the repayment duration agreed between borrower and lender. It directly affects EMI and total interest paid.
Why it matters
A longer tenure can reduce EMI but may increase total interest, while a shorter tenure may increase EMI but reduce total interest.
WORKED EXAMPLE
A ₹10 lakh loan for 5 years will generally have lower EMI than the same loan for 3 years, but total interest may be higher.
Questions about Loan Tenure
Can loan tenure be changed?
Some lenders allow tenure changes through restructuring, prepayment or balance transfer subject to policy.
What tenure should I choose?
Choose a tenure where EMI is affordable without overstretching monthly cash flow.