Determine the Right Tenure for Your Loan Against Property - Loan Trivia


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Thursday 19 May 2022

Determine the Right Tenure for Your Loan Against Property

As a long-term financing option, the loan against property repayment tenor can extend up to a few decades, say up to 20 years. As it creates a financial responsibility for such a long term, you must plan your repayments carefully. One of the diligent ways to do so is to determine your property loan’s tenure that keeps repayment both affordable and convenient.

Before you avail loan against property, determine a suitable tenor with the help of a property loan EMI calculator, a financial tool dedicated for this purpose and more. Here’s what you need to know for a suitable property loan tenor selection.

  • When computing EMI on the calculator, you need to enter 3 values, repayment tenor being one of them.

  • Your choice of tenor, along with loan against property interest rate and amount selected, would impact the EMIs payable.

  • A long tenor decreases the EMIs while a short tenor means increase in the EMIs payable.

  • The tenor selected also directly affects the interest payable and impacts the total loan liability.

  • A long tenor means higher interest payable and vice versa.

  • As it impacts two critical affordability factors, i.e., the EMIs and interest payable, in opposite directions, you need to strike the right balance when selecting your loan against property repayment tenor. 

  • Such balance should be based on finding the most optimized tenor option that keeps the EMIs affordable while keeping interest low.

Also, consider the impact of the other two factors on your repayment liability and decide on your property loan tenor accordingly when applying.

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