✓Minimal Documentation ✓Collateral Free Loans ✓Instant Loan Disbursal | Apply for Personal Loan Now! Apply Now

Personal loans are “all-purpose loans”. You can avail them for fulfilling any personal or financial need, such as paying expensive medical bills, funding a business venture, arranging grand wedding functions, investment purpose, etc. Many banking and non-banking financial companies (NBFCs) grant personal loans with minimal documentation and without taking any form of collateral against it. As a result, personal loans enjoy immense demand in the financial market as compared to other types of loans.



While applying for a personal loan, several parameters such as loan tenure, interest rates, EMIs, etc. come into the picture. However, before deciding on these parameters, a borrower first needs to decide what type of personal loan he/she is availing.

A personal loan can be of two types-

  1. Term Loan
  2. Hybrid-Flexi Loan


Term Loan

A term loan is your regular personal loan where the EMI payments are made over a fixed loan tenure. The interest rates charged on term loans can be either fixed or floating. A fixed rate term loan means the interest for the loan will not change, irrespective of the fluctuations in the financial markets. On the other hand, personal loans with floating interest rates are subject to interest rate fluctuations with respect to market changes.


Hybrid-Flexi Loan

Hybrid Flexi Loans offer relief on the repayment options for your personal loans. For instance, the specially customized Hybrid Flexi Personal Loan at Bajaj Markets offer instant cash disbursal along  with offering flexible repayment benefits like part-payments, unlimited withdrawals and principal holiday tenure.

Once you have made a decision between availing the type of personal loan, you can proceed with the application process. A major part of the application process is deciding the personal loan tenure. Choosing the right personal loan tenure is vital as it influences your interest rates, EMI amount, and the duration for which you will be paying these installments. Hence, it is essential that you choose your personal loan tenure carefully.


How To Choose A Personal Loan Tenure?

While deciding on the tenure for your personal loan, you have to consider the following factors-


Loan Amount

The amount that needs to be borrowed as a personal loan significantly influences the loan tenure. For smaller loan amounts, you need not spread out your loan tenure for a longer duration. Similarly, if you are planning to borrow a large sum of money, it is better to extend your loan tenure in order to avoid any strain on your financials.


Calculate the Interest Rates

Factors such as interest rates, EMI amount and the loan tenure considerably influence each other. Generally, higher the interest rate, higher the EMI amount and longer the loan tenure. However, if you are financially secure enough, you can afford high interest rates for a shorter loan tenure as well. Therefore, when you are deciding on your personal loan tenure make sure you try all the permutations and combinations of interest rates and your EMI options offered by different loan providers to choose a personal loan tenure that is convenient for you.


Determine Your Monthly Budget

Your regular income and the monthly budget needs to be assessed and compared against the repayment terms. If you feel that your monthly expenses take up about 70-80% of your monthly income, you can go easy on the EMI amount for your personal loan. However, lower EMIs means a  prolonged loan tenure. On the same line, if you feel that you can budget your monthly income in such a way that you can afford to make higher EMI payments, you can choose a shorter personal loan tenure.


Consider Your Future Financial Investments

While it is important to get clarity on your monthly budget, it is equally important that you reflect on your future financial prospects. If you were sure about a possible salary hike or other financial increments in the future, then paying off higher EMIs would not be an issue in the long run. In that case, you can choose a shorter tenure to repay your personal loan


Clear Any Existing Financial Liabilities

If you do not have a good credit score, chances are, you will have to pay higher interest rates. This, in turn, will influence the duration of your loan tenure. Moreover, having to pay existing debts can cause significant strain on your monthly budget, forcing you to unnecessarily extend the new personal loan tenure for managing the new EMIs. Therefore, it is important that you clear any existing debts or financial liabilities and maintain a good credit record.

Know how to find the right personal loan for you


Some Final Thoughts 

Most banks and non-banking financial institutes offer eligibility calculators as well as EMI calculators which help to calculate personal loan EMI on their websites to help get an idea on your loan repayment options.. You can make use of these online tools to make an informed decision about the tenure of your personal loan as well. Make sure that you are being completely discreet when deciding on your loan tenure to avoid paying EMIs for many years at unnecessarily high interest rates.


For comfortable personal loan tenure options, visit us at Bajaj Markets or download our personal loan appApply for a Personal Loan at Bajaj Markets which offers benefits such as instant approval, minimal documentation, and fast online processing of your loan request. Apply now and get a free financial fitness report along with a customized insurance plan to protect your loan liability.

Bajaj Markets, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!

Download App
Credit Score