A Personal Loan is an unsecured loan which is issued from a financial institution to an individual for his or her personal needs which may be oriented to travel, education, buying an asset, or anything as such. In the same sense, a Personal Loan account is opened for the person who opts for a personal loan.
What is personal loan tenure?
When you issue a Personal Loan, you also have to pay the interest on it along with the principal amount while you repay the task. There is a designated time wherein you have to pay back the loan along with interest amount. This is Personal Loan tenure.
PersonalLoan tenure can be defined as the time which is chosen by the applicant who applies for the loan under which he or she abides to repay the loan along with the interest amount. the Personal loan tenure may range from 1 year to 5 years. All the banks have various offers regarding flexible PersonalLoan tenures which implythat the Personal Loan applicant can pay the amount as per his convenience in the time span, they opt for. Generally, the tenure for Personal Loan varies from 1 to 5 years only.
Now since you know what Personal Loan tenure is, you might want to consider, how should you decide what is the apt Personal Loan tenure for an informed decision. Read on to find out.
How to choose Personal Loan wisely?
To gear up on deciding your Personal Loan tenure, you must always consider the following pointers as mentioned below:
Take note of your monthly income
Most of the people pay their interest amount each month. Therefore, it is important that you calculate your monthly income and find you how much you can designate for paying off the loan. If that is substantial, then you can choose a shorter period of time, and in case, you do not feel that the tenure will be able to let you pay back, then opt for a flexible tenure wherein you can pay the amount back in a longer period of time than usual.
Study your future financial prospects
If in future, you expect your salary to take a hike, then you might want to opt for a small tenure. This way you can pay off your tenure easily and fast as well. You can pay more amount in less time and clear your dues even before than you had assumed. However, if you are planning on investing on other arenas with your disposable income, then you might want to have a lengthier tenure period because you will be needing more time to pay off your dues this way.
Take in consideration of the existing liabilities
If you have any other liabilities, or financial commitments to take care of where you will have to invest monetary assets, then you must always choose a balance on how you plan to manage both the commitments. By keeping in mind both your liabilities only, you must come up with a Personal Loan tenure so that you can pay both the things timely. Prioritize as to which commitment must be taken care before and process accordingly and then choose a Personal Loan tenure.
Do consider the loan amount and interest rate that comes along with it.
A higher loan involves a higher rate of interest. If you are opting for a higher loan amount, then you probably would have to shell out interest in the same proportion. This makes it difficult or you to pay back the loans quickly. Thus, for being on the safer side, you must take in consideration a longer period of time,
may be so that you are able o pay off your debts along with the interest on time with a margin in your hand.
Use an EMI calculator
An EMI calculator will help you assess the exact Personal Loan tenure you must opt for. This is quite helpful as it will save your time on calculating it all on your own, and it will give an exact and accurate answer to your query.
Some Personal Loan Deals to consider:
With so many options and so many banks to choose from, thedecision usually becomes difficult. However, to make it easy for you, we have listed downsome of the best banks for taking Personal Loans on flexible loan terms.
Bajaj Finserv Bank Personal Loan
- There is the availability of up to 45 % lower EMI
- You can avail an instant approval of Bajaj Finserv Bank Personal loan
- Minimal documentation required
- Money is back in almost 24 hours only
- They offer flexible personal loan tenures
- A lot of pre-approved offers available
- Collateral free loan available
- There are absolutely no hidden charges
- Online loan account can also be managed
Yes Bank Personal Loan
- There is no need for collateral
- There is flexibility available in repayment options
- Instant approval of principal amount available
- The interest rates are quite lucrative
- It is very easy to Apply for Yes Bank Personal Loanonline as well
- There is a very quick disbursal of loan funds
- Speedyapproval of loan
- You can also transfer the existing loans that you hold
- There is a facility of doorstep banking
- Facility of net banking and mobile banking also available
- There is an option of part pre-payment
Various types of Yes bank personal loan
- YES BANK’s Personal Loan for Holiday
- YES BANK’s Personal Loan for Wedding
- YES BANK’s personal loan for Home Renovation
Likewise, you can compare Personal Loans from other banks and find yourself an excellent offer. Keeping above-mentioned tips in mind, you can easily plan your tenure in the best way possible.