A borrower may opt for a longest Personal Loan tenure ranging from 1-5 years to meet a significant financial need or an emergency expense. Since the loan repayment tenure is longer, the EMI is lower than of short-term loans. While a Personal Loan does not require any collateral, longest tenure requires a collateral or a guarantor to prove your creditworthiness. However, this requirement may differ from one lender to another.
Taking a Personal Loan for a longer tenure will help you to manage your EMIs smoothly and allow you to make timely payments that will not feel like a burden. Also, long term tenure can impact your credit score positively and the increased score will be reflected in your financial history as you go on making scheduled payments.
For example - If Rahul borrows Rs 50,000 at 15% interest for a 12-month tenure, the EMI will be Rs 4513. On the other hand, the EMI will be Rs 1190 for the same loan amount taken for a 60-month tenure. However, the total interest payable for a longer tenure will be more but it will help you to manage your EMIs without any financial burden.
| Tenure | Monthly EMI | Total Interest | Total Payable Amount |
| 12 Month | ₹4,513 | ₹4,155 | ₹54,155 |
| 24 Month | ₹2,425 | ₹8,184 | ₹58,184 |
| 36 Month | ₹1,734 | ₹12,398 | ₹62,398 |
| 48 Month | ₹1,392 | ₹16,794 | ₹66,794 |
| 60 Month | ₹1,190 | ₹21,370 | ₹71,370 |
*These are estimated amounts, actual EMI may vary*
Features and Advantages of Longest Tenure for Personal Loan
High loan amount with Lower EMI- A higher loan amount borrowed will have lower monthly payments with a longer tenure. Instead of a quarterly or bi-monthly repayment schedule, opt for a monthly EMI payment that you can afford to repay on time.
Facilitates major purchase- Longest tenure loan enables seeking a higher loan amount for the purchase of commercial assets, heavy debt consolidation, home repairs, education, travel, wedding and for many other personal purposes.
Improves credit score- Benefit of a long-term loan ensures improved credit score as the EMI payments are made without any delay with reduced interest rate.
Reduces repayment burden- Taking a long-term tenure may reduce your burden of repayment. A young borrower with a low income will find a long-term loan viable instead of high interest short term loans.
Improves loan eligibility– Choosing a longer tenure is more likely to improve your loan eligibility, as the EMI amount gets lower, which means the repayments are more likely to be on time. To the lender, it will appear as low risk lending and in the process your eligibility will get improved.
Automated repayment method- The online payments are safe through ECS facility or auto-debit feature, which is offered by most of the lenders. The automated way of payment makes self-deduction on the scheduled date and time. This eliminates the chances of missed or delayed payments.
Loan EMI calculator- This is a fast pace tool available on personal loan apps and websites. It gives borrowers a free hand to select their loan amount, tenure, and interest rate. These three variables when entered correctly give an EMI figure in seconds. If the EMI seems out of your budget, you can flexibly reset the variables to get a suitable EMI.
However, the longest tenure selected for a personal loan has its pros and cons. But it’s up to a borrower’s monetary need that will be fulfilled in a short-term loan or a long-term loan. Longest loan tenures are undoubtedly easy to repay and can guarantee more loan amount as compared to unsecured loans.
Read also: Know Maximum Personal Loan Amount Limit in India
Eligibility to Choose Longest Tenure Personal Loan
Hero FinCorp offers attractive options for securing a Personal Loan with a long tenure. To make sure you're eligible for their longest-tenured Personal Loan, here are the essential criteria you need to meet:
1. Age Requirement
You should be between 21 and 58 years to apply for a Hero FinCorp Personal Loan. Choosing an extended tenure will depend on your age.
2. Minimum Monthly Income
Your minimum monthly income should be Rs 15,000 to qualify for your extended tenure Personal Loan. It ensures your ability to repay the loan over an extended period.
3. Good Credit Score
Hero FinCorp looks for a credit score of 750 and above. A good credit score reflects your creditworthiness and enhances your chances of loan approval with extended tenure.
4. Employment at Reputed Organisations
Salaried individuals working at renowned MNCs or in the government sector are eligible for Hero FinCorp's extended tenure Personal Loans.
5. Self-Employed Business Vintage
If you are self-employed, your business should have a vintage of at least three years to be considered for a Personal Loan with a long tenure from Hero FinCorp.
Required Documents for Long Tenure Personal Loan
When applying for a long-tenure Personal Loan, it's essential to have the necessary documents ready to streamline the process. Here are the standard documents you'll need:
- Proof of Identity: Provide a copy of your Aadhaar card, passport, voter ID, or driving licence for KYC.
- Proof of Address: Submit documents such as your Aadhaar card, passport, utility bills, or rental agreement.
- Income Proof: Include your salary slips or bank statements for the last six months for salaried individuals. Self-employed individuals should provide income tax returns (ITR) and business financials.
- Employment Proof: For salaried individuals, submit your employment ID card or a letter from your employer. Self-employed individuals may need to provide business registration documents.
- Passport-size Photographs: Provide recent passport-size photographs per the lender's specifications.
Having these standard documents in order will speed up your long-tenure Personal Loan application process and increase your chances of approval.
How to Apply for Personal Loan with Quick Disbursal?
Here are the steps to apply for a longest-tenure Personal Loan with Hero FinCorp:
- Apply Online: Visit the Hero FinCorp website or download the loan app from the Play Store/App Store.
- Create an Account: If required, create an account or log in to your existing one.
- Check Eligibility: A Personal Loan Eligibility Calculator is available on the website or app. Use it to confirm if you meet the lender's criteria.
- Select Loan Type: Choose the type of Personal Loan that suits your needs, such as a Travel Loan.
- Fill in the Application Form: Complete the online application form with your personal details, contact information, employment information, and the loan amount required.
- Upload Documents: Upload the necessary documents, including ID proof, income proof, and bank statements.
- Verification: Our team will review your application and documents. They may contact you for any clarifications.
- Loan Approval: Upon approval, you will receive a loan offer with terms and conditions. Review it carefully and accept the loan offer.
- Disbursal: Once accepted, the loan amount will get disbursed instantly into your bank account.
By following these steps on the lender's official website or mobile app, you can easily apply for a Personal Loan with quick disbursal and meet your financial requirements without delay.
Conclusion
The longest tenure for which you can secure a Personal Loan can be a game-changer when managing your finances. As financial institutions and NBFCs like Hero FinCorp increasingly offer extended tenures, borrowers have more flexibility to repay loans comfortably over an extended period.
However, balancing tenure and interest rates is crucial to making the most informed decision. Choosing a short, medium, or long tenure ultimately depends on your financial goals and repayment capabilities.
Frequently Asked Questions
1. What is the maximum loan duration for the personal loan?
The maximum loan duration for a Personal Loan varies by lender but can generally range from 1 to 5 years, depending on the borrower's eligibility and the lender's policies.
2. Are long term personal loans better in comparison to short term ones?
Long-term Personal Loans offer lower monthly payments but may accrue more interest over time. The choice depends on your financial goals and ability to manage repayments.
3. Does the income of the applicant play any role in getting a long term loan sanctioned?
Yes, the applicant's income is key to securing a long-term Personal Loan. A higher income often improves eligibility and may allow for a longer tenure.
4. Do lenders only approve long term loans to individuals?
Lenders consider various factors, including creditworthiness and income, when approving loans. They don't exclusively approve long-term loans; the tenure depends on the borrower's profile and preferences.
