Loan Tenure

Loans

Quick Definition

Loan tenure is the total time period over which a borrower agrees to repay a loan.

Detailed Explanation

Loan tenure refers to the duration for which a loan is taken, ranging from a few months to several years. Longer tenures reduce EMI but increase total interest paid, while shorter tenures increase EMI but reduce overall interest cost.

Example

"A home loan taken for 20 years has a loan tenure of 20 years."

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