Getting an instant online personal loan can be a smart financial move when preparing for a big purchase. You don't need to give up collateral to secure the loan amount. And once the loan is approved, you can access the funds immediately, no questions asked. The best part? You can repay the loan amount in manageable monthly payments.
Today, many lenders offer low-interest rates, making EMI repayments affordable. And some even allow flexible loan repayments, allowing you to choose your loan tenure based on your financial abilities. This blog covers all you need to know about flexible repayment tenures instant online personal loans.
What is a Flexible Repayment Tenure?
When lenders offer a flexible repayment facility, they mean that you can choose the tenure of your personal loan. Lenders believe this reduces the chances of defaults in loan repayments, given that borrowers can choose a term based on their financial obligations.But choosing a suitable loan tenure is no easy feat. So, how do you do it?
How to Choose the Best Repayment Tenure?
1. Monthly Income
The best way to determine the ideal personal loan tenure is by evaluating your monthly income and savings. You also need to consider your existing liabilities and their repayment period.
For instance, if you need help to repay your education loan, you want to avoid taking a personal loan with a short repayment tenure and further increase your immediate financial burden.
2. Loan Amount
When determining the suitable tenure for a personal loan, the ratio of your loan amount to your income plays a key role. For example, a shorter term might be more appropriate if you're looking to borrow an amount of 2-3 times your income. On the other hand, if you're taking out a loan 9-8 times your income, a more extended repayment period may be more feasible.
3. Interest
The loan tenure you choose also impacts the total interest you pay on your loan. For instance, you pay a higher EMI amount if you select a short loan tenure. But since the number of months reduces, you also spend a lower total amount towards your monthly interest.
Conversely, if you choose a longer repayment tenure, the EMIs become smaller and more affordable. But since the number of months increases, the total amount you spend on monthly interest also increases.Simply put, you need to consider the amount you want to spend on interest and the EMI amount before choosing the loan tenure.
Use a Personal Loan EMI Calculator to Find a Suitable Loan Tenure
Using an EMI calculator is the best way to decide on your tenure for a personal loan. It's a free and readily accessible online tool that allows you to calculate your EMI and choose a suitable tenure. You can toggle between the months, set the principal amount and the interest and determine the ideal term for your loan.
To Conclude
The flexible repayment facility offered by many lenders makes instant personal loans more accessible. However, choosing a suitable tenure is vital. Consider your financial obligations, loan tenure and total interest before deciding your loan repayment tenure. And if you need additional help, don't hesitate to use a personal loan EMI calculator to help you out.
Looking for an instant personal loan. IndusInd Bank, one of the most trusted banks, provides instant personal loans with a flexible tenure ranging from 12 months to 48 months at low interest rates. They have a fully digital application process, with instant approvals and quick disbursement. Apply for a Personal Loan now.