LoansFinancial Glossary
Tenure
Definition
The duration of a loan from disbursement to the final EMI payment. Home loans in India typically range from 10 to 30 years, car loans from 1 to 7 years, and personal loans from 1 to 5 years. Longer tenure means lower EMIs but significantly higher total interest paid.
Why It Matters
On a Rs 50 lakh home loan at 8.5%, the difference between a 20-year and 30-year tenure is dramatic. The 20-year EMI is Rs 43,391 with total interest of Rs 54.1 lakh. The 30-year EMI is Rs 38,446 (only Rs 4,945 less) but total interest balloons to Rs 88.4 lakh — Rs 34.3 lakh extra. Choose the shortest tenure your cash flow allows.