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.

Why Choose a Personal Loan for 3 Years

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.

EMI Calculator for 3 Years Personal Loan

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Benefits of a 3-Year Personal Loan

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

Drawbacks to Consider

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

Interest Rates for 3-Years Personal Loans

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

Privo Personal Loan

₹5 Lakhs

9.99%

60 months

1% to 3% of the loan amount + GST

Kotak Mahindra Bank Personal Loan

₹40 Lakhs

10.99%

72 months

Up to 1.10% - 1.50% of the loan amount + GST 

KreditBee Personal Loan

₹10 Lakhs

12.00%

60 months

Up to 5.1% + GST

Freo Personal Loan

₹5 Lakhs

12.00%

36 months

1% Onwards

YES BANK Personal Loan

₹50 Lakhs

12.50%

72 months

Up to 2.75% of the loan amount

Federal Bank Personal Loan

₹5 Lakhs

12.75%

48 months

2% to 3% of the loan amount + 18% GST

Fibe Personal Loan

₹5 Lakhs

14.00%

36 months

Up to 2% of the loan amount

Upwards Personal Loan

₹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.

EMI Calculation for a 3-Years Loan

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.

Tips to Get a Personal Loan for 3 Years at a Lower Interest Rate

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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