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Tenure is the time period within which you would have to pay your loans back within the given time. When you’re in need of a personal loan and you want to make sure you get the ideal tenure deal, its better to take into consideration a few factors. Factors like your income, the interest you are paying for your loan or the amount of money that you are borrowing really matters. Taking a long tenure period for less money borrowed might not be a good idea. This is because, as long as you are paying your EMIs you’ll be paying interest on that money too. Paying unnecessary interest rates for months on is just a waste of money. It’s better if you can be rid of your EMIs as soon as possible if you avail less money.
Your income comes into picture when your deciding on your repayment period because you would have to take into consideration your monthly budget. You would have to take out a portion of your income every month to pay your EMIs. So, people with lower incomes will always opt for a longer tenure period so that they will be able to pay over a long time in small installments. While people who have better income can afford to pay within a small time to get it done quickly.
Having a good credit score will also help you get low interest rates and you’ll be able to pay your EMIs within a short period of time as the amount you’ll be paying will get lesser. When getting a loan for a small amount of money, it’s better to pay it off in a short period of time. But huge amounts will need a long tenure period as you might not be able to pay a large amount every month. Keeping tabs on your other finances while paying your EMIs is also important. It’s important to decide a good tenure plan that works for you financially.
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