Home Loan Tenure

Choose the Right Home Loan Tenure

Home Loan Tenure

Loans are usually for the highest period of 15 years (that may go up to 20 years in some cases). Long tenure loans have less monthly payments. You can still get a huge loan on a comparatively small recurrent salary by electing to take a longer period loan.

The loan provider needs to be provided with all the home loan documents that are demanded from the applicant, this plays a major role in the tenure calculation of the loan against a property 

However,  the extended period loans may be more costly (higher rate of interest) even though the monthly payment amount is lower.

Long tenure loans are linked with considerable risk and weightlessness. The home loan interest rates can alternate either way and the inflation number could touch unanticipated highs. Borrowers must factor in interest rate variations and set aside funds to meet advances in EMIs.

Borrowers, who cannot bear the tension of rate fluctuations, favour clearing their accounts faster. Such borrowers opt for short tenure loans. Shorter tenure indicates larger EMI outflow month after month.

Though a short tenure signifies borrowers can unload their debts faster, many may find it challenging to set down a large part of their revenue towards the home loan repayment alone.

Normally all heading Home loan Companies in India like HDFC Bank, SBI, ICICI Bank, Indiabulls, Bank of Baroda, Reliance Consumer Finance, etc. offer flexible repayment tenures up to 20 years

Statistical confirmation also shows that most people take a longer home loan tenure of 10-15 years but end up repaying the same in 5-6 years. What happens as salaries invariably improve with time.

In the end, it is the choice of the applicant where to apply for a home loan, a home loan EMI calculator might prove helpful to understand the terms offered by a bank or NBFC.

Leading Home Loan Providers (Click to Apply)
Axis Bank Home Loan HDFC Home Loan SBI Home Loan Citibank Home Loan Other Banks


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