Personal loan dilemma


Which is a better idea when it comes to a personal loan, a short tenure or a long one considering a long tenure may mean lower EMI.


Personal loans come with various tenure ranges but just because a loan is offering you a long tenure do not blindly opt for it. The higher your loan tenure, the higher will be your final repaid amount for the loan. The sooner you can repay your loan, the better it is not only for the bank but for your credit score as well. So choose the shortest tenure period which is comfortable for you instead of opting for a long tenure.


Hi Reba,

Irrespective of which loan you take, it is best to opt for a shorter tenure because that way your interest outgo gets reduced. The longer the tenure, the more interest you pay on your loan. This is especially true for Personal Loans that come at high costs. The interest rates for Personal Loans range between 10% and 16%. It is best to choose a tenure based on your financial situation. Don’t choose a longer tenure just to pay lower EMIs. Ideally, you should choose a tenure where EMIs don’t wipe out your monthly pay.

BB Expert


Actually it totally depends on us, if a borrower can repay his/her payment in short tenure, then he/she won’t look for long tenure. For an example I have taken personal loan from Monexo of 70k & I have the ability to repay it in 3 months, they why should I go for 6 months or 9 months.