Buying a dream home can cost a substantial sum, this purchase isn’t possible out of pocket for many. In such cases, the go-to offering is a home loan as it provides borrowers with ample funding and the benefit of a low interest rate. Besides this, another distinguishing factor is the home loan tenure. When compared to most unsecured and some secured offerings, there is no doubt that it is among the lengthier options available.
To better understand this loan feature and how you can identify the ideal home loan tenure, read on.
A housing loan tenure refers to the time period that a borrower will take to repay the loan amount along with the interest. Usually, the minimum tenure for home loan is two years and it ranges up to 30 years, depending on the lender.
Many first-time borrowers wonder whether the home loan tenure should be long or short and which of the two is the better option. Firstly, the home loan duration should be decided based on your age, repayment capability, and the interest rate offered to you. Secondly, both options have their benefits, which are:
Naturally, when deciding which is better, you need to consider your financial priorities. If you value a comfortable repayment experience, choose a longer tenure as this means you can pay smaller EMIs, albeit at a higher interest outgo. If you’re looking to save on interest, choose a short tenure but be prepared to pay high monthly instalments.
There are several factors to keep in mind before you finalise on a tenure. They are:
As the length of the tenure impacts the interest payable on a loan, it may not always be the best option to opt for the maximum home loan tenure. India has several lenders that will offer a loan with a tenure of up to 30 years, and it is imperative that you first calculate the interest payable. An easy and quick way to do this is to use the home loan EMI calculator.
This digital tool allows you to calculate the interest payable and EMI amount for a given tenure. With this information, you can identify the best loan terms for your financial profile and ensure that your interest outgo stays optimal.
Now that you have a better understanding of this loan feature, be sure to find the most comfortable tenure when you opt for a Bajaj Housing Finance Limited Home Loan. With this loan, you can choose a tenure that ranges up to 30 years, thus ensuring maximum repayment comfort. To get started easily, apply online by sharing basic details.
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Last update on 11-Mar-2021
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