How to Choose the Right Loan Tenure to Reduce Your EMI
Updated · 6–8 minute read
What is Loan Tenure?
Loan tenure is the total time you take to repay a loan. It’s usually expressed in years or months. Your EMI depends on three inputs: principal (P), annual interest rate (R), and tenure (n).
How Loan Tenure Affects EMI
- Longer tenure → smaller monthly EMI but higher total interest.
- Shorter tenure → larger EMI but much lower total interest paid.
Short vs Long Tenure — Pros & Cons
Short Tenure
- ✔ Finish debt faster
- ✔ Lower total interest
- ✖ Higher monthly EMI
Long Tenure
- ✔ Lower monthly EMI
- ✔ More budget flexibility
- ✖ Higher total interest over time
Tips to Reduce EMI
- Increase tenure slightly to reach a comfortable EMI.
- Make occasional prepayments to cut interest and reduce tenure.
- Compare rates and refinance if your credit improves.
- Keep processing fees in mind when comparing offers.
Try Our EMI Calculator with Examples
Open the calculator with sample values (you can edit them any time):