Understand the key details, including interest rates, eligibility requirements, and benefits, to decide if a 3-year personal loan aligns with your financial needs.
A personal loan with a 3-year tenure strikes a balance between affordability and repayment flexibility. It provides sufficient time to manage your repayments while keeping EMIs manageable. Whether for planned expenses like higher education or unexpected medical emergencies, a 3-year personal loan is a reliable financial solution.
You can take a 3-year personal loan during any emergency or urgent requirement. This loan provides sufficient repayment time with manageable EMIs and competitive interest rates. Here are some reasons you may need to take a personal loan for 3 years:
Easy Online Application Process
Bajaj Marketsoffers a hassle-free online application with minimal documentation and quick approval, making it convenient to access credit when needed.
Lower Interest Costs
A shorter repayment tenure leads to reduced overall interest payments compared to longer-term borrowing, helping you save on total loan costs.
Quick Access to Funds
Short-term loans are processed swiftly, allowing you to access funds promptly for immediate financial needs such as healthcare, travel, education, or wedding expenses.
Improves Credit Score
Repaying the loan on time enhances your credit profile and supports the development of a solid credit history.
Faster Loan Closure
You can clear the loan within a short period, typically up to two years, easing your debt obligations more efficiently.
Here are some benefits of a 3-year personal loan:
Submit only basic documents for quicker loan approval
Save on overall interest due to the shorter repayment period
Repay the entire loan within two years to avoid long-term financial commitments
Support daily expenses without affecting your regular budget
Assist businesses in handling cash flow changes during seasonal income shifts
Access immediate funds for sudden medical, personal, or business-related needs
Suitable for both self-employed individuals and salaried professionals
The following are some drawbacks of getting a personal loan with a 3-year tenure:
Higher processing fees and additional charges
Higher interest rates, especially for unsecured loans
Stricter eligibility requirements from some lenders (e.g., income, documentation, credit score)
Higher monthly payments compared to longer loan tenures
The table below shows the interest rates offered by various lenders on $$%BrandName%$$:
Available Offerings |
Max. Loan Amount |
Min. Interest Rate |
Max. Tenure |
Processing Fee |
₹5 Lakhs |
9.99% |
60 months |
1% to 3% of the loan amount + GST |
|
₹40 Lakhs |
10.99% |
72 months |
Up to 1.10% - 1.50% of the loan amount + GST |
|
₹10 Lakhs |
12.00% |
60 months |
Up to 5.1% + GST |
|
₹5 Lakhs |
12.00% |
36 months |
1% Onwards |
|
₹50 Lakhs |
12.50% |
72 months |
Up to 2.75% of the loan amount |
|
₹5 Lakhs |
12.75% |
48 months |
2% to 3% of the loan amount + 18% GST |
|
₹5 Lakhs |
14.00% |
36 months |
Up to 2% of the loan amount |
|
₹5 Lakhs |
18.00% |
36 months |
Up to 4% of the loan amount plus GST |
Disclaimer: The details mentioned are subject to change at the lender’s discretion.
Here are the main criteria that represent your creditworthiness for a 3-year loan tenure.
Credit Score
Your credit score plays a key role in determining your personal loan interest rate. A score above 700 generally reflects good creditworthiness and helps you secure loans at lower interest rates. A lower score increases the risk for the lender and usually leads to higher interest rates.
Income
Lenders place significant importance on your income. A stable and increasing income enables you to secure better interest rates. Lower or irregular income adds to the lending risk and often results in higher rates.
Loan Amount
The interest rate also depends on the loan amount you intend to borrow. Lenders may offer lower rates for higher loan amounts when your income supports timely repayment. Interest rates usually rise when the loan exceeds your repayment capacity.
Relation with the Lender
Having an ongoing relationship with your lender can improve your chances of getting better loan terms. Banks and financial institutions are more likely to offer lower interest rates if you hold a salary account or use other services with them.
Such relationships build trust, which can lead to more favourable borrowing conditions.
Employer’s Reputation
The organisation you work for can impact the interest rate you receive on a personal loan.
Employment with a well-established company or a government institution signals financial stability to lenders. This lowers the perceived risk and can help you qualify for loans with reduced interest rates.
Let us see some loan EMIs and interests for different loan amounts at 9.99% for a 3-year loan tenure:
Description |
EMI Amount |
Total Interest Payable |
Total Repayment Cost |
₹5 Lakh Personal Loan EMI for 3 Years |
₹16,131 |
₹80,724 |
₹5,80,724 |
₹6 Lakh Personal Loan EMI for 3 Years |
₹19,357 |
₹96,869 |
₹6,96,869 |
₹7 Lakh Personal Loan EMI for 3 Years |
₹22,583 |
₹1,13,014 |
₹8,13,014 |
₹8 Lakh Personal Loan EMI for 3 Years |
₹25,809 |
₹1,29,159 |
₹9,29,159 |
₹9 Lakh Personal Loan EMI for 3 Years |
₹29,036 |
₹1,45,304 |
₹10,45,304 |
Disclaimer: Note that these are approximate values meant only for illustration. For actual EMI values, reach out to your lender.
As the loan amount increases, both the monthly EMI and the overall interest payable also rise. This indicates that interest continues to accumulate as the tenure extends, even though longer tenures reduce the monthly instalment amount.
Opting for a longer loan tenure reduces monthly repayment pressure. However, it increases the total repayment due to more interest over time.
Here are some tips you can follow to get a personal loan for 3-year at the lowest interest rates:
Maintain a high credit score
Have a good repayment history
Compare the personal loan interest rate with multiple lenders
Consider your income and employment history before applying
Choose a loan with low fees and charges
Apply with a co-applicant
Frequently Asked Questions
Can you get a personal loan for 3 years?
Yes, you can take a personal loan with a tenure ranging from just a few months to several years, including a 3-year option.
What is the maximum loan one can get for a 3-year tenure?
You can get loan amounts up to ₹40 Lakhs and more through lenders on $$%BrandName%$$.
Is 3 years the maximum tenure for a personal loan?
No, you can get a personal loan with easy repayment options ranging up to 8 years.
Can I prepay or foreclose a 3-year loan?
Certainly, you have the option to pre-close your personal loan after a few years or after completing at least 12 EMI payments. When the loan is foreclosed, you need to pay the EMI for the current month, any outstanding amounts, and foreclosure expenses.
What happens if I miss an EMI payment?
If you miss even one EMI, you can severely damage your credit score. You may also face higher penalties in addition to limiting your future borrowing options. In some cases, you may even run into legal trouble and long-term damage to your credit.
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