home loan
home loan

Choosing an appropriate repayment tenure when purchasing a house loan is critical to your home loan journey. It necessitates cautious planning in order to have a stress-free repayment experience. Have you really found yourself unable to easily pay your home loan equated monthly installments (EMIs)? A choice of loan terms or repayment could be one of the reasons.

The payback duration for a house loan is the amount of time you have to pay back a loan plus interest in EMIs. Almost every lender provides a generous loan term of up to 30 years. In fact, while taking out a home loan, you have the option of choosing the term that best suits your financial situation. Considering the simplicity with which you can select a repayment window, you should determine which ones can assist you in repaying the loan with undue stress.

The following are the factors that impact the length of a home loan:

Monthly Salary:

If you apply for a home loan, the EMI will take up half of your monthly income. If you don’t have any larger debts aside from your mortgage and have a greater monthly income, you would like to go for a shorter term. The EMI, on the other hand, would be greater, which will help you pay off the loan faster. A longer term would result in lower EMIs, but the interest rate would be higher.

Monthly Expenses:

The tenure you choose is also determined by how much money you spend on a monthly basis. Assess your expenditure and then settle on an EMI that is within your budget. This will help determine how long you should take out a loan.

Borrower’s Age:

When applying for a home loan, banks consider the borrower’s age. In contrast to middle-aged borrowers, younger lenders usually find it more comfortable to choose a lengthier payback period. Borrowers in their forties are more likely to repay the house loans promptly. As a result, you should consider your age when choosing a tenure.


When picking a house loan term, retirement age should be taken into account. It’s always a good idea to pay off your debts before you reach your golden years. Nobody wants to spend their retirement years striving to pay off a debt. If you wish to retire at age of 60, you should pay off your home loan by the age of 50, or no later than age of 53.

Savings If you have enough money saved up to make a large down payment without difficulty, you should do so. Your home loan amount will be reduced as a result of this. You can select a tenure based on the financial requirements. If you believe you will be able to repay the loan in 15 years or less with the lowered loan amount, don’t hesitate to do so. The interest rate on a home loan will also be lower. According to the present situation, you can get a home loan at a rate of 6.75 percent per year. The home loan eligibility calculator determines your eligibility for the loan. 

Which is the ideal house loan tenure: long or short term?

When it comes to choosing a house loan term, there is no perfect option. It is dependent on the individual’s needs and financial resources. If you don’t care about the interest rate and want to pay off the loan quickly, a greater period of up to 30 years is an option. If you have the financial means of paying larger EMIs, on the other hand, you might choose a shorter term. If you want to figure out your EMI, interest rate, and repayment period, you must use a house loan EMI calculator.


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