While taking a personal loan, an individual must consider many factors. The interest on the loan, repayment tenure and documents to be submitted are a few of those factors. Personal loan lenders let the borrowers choose the repayment tenure of the loan. Few lenders provide a limited repayment time whereas some provide borrowers with a flexible loan tenure. One of the lenders that provide personal loans with flexible repayment option is Fullerton India. It is up to the borrower to opt for the most suitable repayment period as per his/her income, repayment capacity, and other financial obligations. Most people choose a short repayment time to save the interest amount and pay off debt quickly. But, a longer repayment period is more beneficial for numerous reasons. Why should you choose longer repayment tenure? Read further to understand in detail.
The advantages of longer repayment tenure on a personal loan are as follows:
As the repayment tenure increases, the monthly EMI amount decreases. For example, an individual has taken a loan of ₹30,000 at an interest rate of 10%. If the repayment tenure is 3 years, the monthly repayment amount is ₹968. However, with a longer repayment period of 5 years, the monthly EMI reduces to ₹637. Easy personal loans with lower EMI mean that borrowers with lower monthly incomes can save money for other expenses without any budget or financial constraints.
As the longer personal loan tenure reduces the monthly repayment amount, you can borrow a higher amount of loan. The amount of loan applied depends on the affordability and requirement of a borrower. The debt-to-income ratio must also be considered while choosing the loan amount.
You can improve your credit score by repaying the loan as per schedule. It allows you to avail of higher loan amounts in the future. By borrowing a loan for a long period and making payments on time, your credit score will increase.
A shorter repayment tenure means higher EMIs. It may financially strain the borrower which will result in missing out on monthly payments and increasing debt. By not repaying the EMI amount on time, the credit score will decrease and affect the financial record of the borrower. However, a longer tenure will have a low amount EMIs, reducing the chances of default.
Meeting monthly expenses while repaying a personal loan is not easy. There may be unplanned expenses that an individual has to pay. If the monthly EMI is low, an individual can free up cash to meet any other expenses. It also means that you can make savings after setting aside a fixed amount for EMI.
Fullerton India is a reputed lending institution that provides personal loans online with 100% application and hassle-free loan procedure. They are one of the popular personal loan lenders because of the attractive features offered to the borrowers. The features and benefits of Fullerton India are:
Loan up to ₹25 Lakhs*
Unlike most lenders, Fullerton India has a higher limit of a personal loan of up to ₹25 lakhs* for borrowers who meet their eligibility criteria.
Flexible Tenure
As mentioned above, flexible and longer repayment tenure gives borrowers the freedom to save and make repayments on time. The repayment tenure of Fullerton India ranges between 12 to 60 months. The flexibility of repayment tenure offered reduces the monthly repayment amount substantially.
Attractive Interest Rate
Fullerton India offers an attractive interest rate starting at 11.99%* per annum that varies depending on the loan amount, tenure of the loan, your financial profile, repayment capacity, credit history and relationship with the lender.
Paperless Documentation
The required documents for a personal loan by Fullerton India are minimal. All the necessary documents for a personal loan can be uploaded online on the Fullerton India website or their mobile application. Paperless documentation makes the whole process of loan application convenient and time-saving.
Quick Disbursement
When there is an emergency need for funds, going through a tedious loan application process is difficult. Online personal loans have made the verification and disbursal of loans quick. By applying for a personal loan with Fullerton India, you can get the loan amount credited to your account shortly after approval.
Conclusion The tenure of a loan is one of many factors that affect the repayment process. If you are eligible for a personal loan, check the interest rate and the total amount of loan offered to arrive at the ideal repayment tenure. You can use the Fullerton India’s online EMI calculator to find the monthly repayment amount that will be applicable. Make sure that the period you choose makes the repayment easier and is within your monthly budget. Apply today.
