Apart from rate of interest and monthly installments (EMI), tenure of a loan is the most important factor considered by a borrower before opting for a loan against property from a bank or financial institution. Most of the banks consider following three important factors before deciding your loan tenure. Let us look at these factors in detail-
- Your Age – Your age plays an crucial role in deciding EMI for loan against property. If you are in your 20s or 30s then you can go for a higher tenure loans but if you are nearing your retirement then, you have to shorten your loan duration as most of the banks and financial institutions are hesitant in providing loan past retirement age. You can take help of online EMI calculator to assess the impact of shorter loan tenure on your loan As a ground rule, you should always remember that shorter the loan tenure, higher will be EMI you have to pay against loan against property.
- Your income – Your net income and expenses are one of the most important factors that can and should impact your loan tenure. It is often seen that in eagerness to get a loan against property from a bank, most of the borrowers opt for a loan of shorter durations. A shorter duration loan will result in larger EMI. With time, borrowers are unable to repay back their loan on time and this result in bad impact on their cibil score. There are plenty of online EMI calculator available online that asses your income and expenditure to provide the best loan opportunity with optimal tenures for your profile.
- Loan amount – A higher loan tenure is usually offered to the loan of ticker size greater than a certain range as it will reduce the burden of payment in short duration of time and it will also uniformly distributes your loan in optimal EMI. Banks usually offers tenure of 5-15 years on loan against property and higher the laon amount, higher will be the tenure of the loan. Online EMI calculator is the best tool to calculate best tenure for your required amount of loan.
Borrowers should always be careful in going ahead with any loan proposal from a bank or financial institutions. They should carefully analyze and try o reach a optimal balance in terms of loan tenure, rate of interest and emi. You can take help of any online emi calculator to reach the optimal balance in your loan proposal.