What is Loan Tenure and Factors which affect Loan Amount and Tenure?

Lenders offer varying loan tenures depending on the type of loan offered. While short-term loans have shorter loan tenures, long-term loans like mortgage loan have a tenure spread over more than 10 years.

What is Loan Tenure?

It is the period for which a financial institution sanctions the loan amount and during which the borrower is liable to repay the loan along with interest. Borrowers repay the loan as EMIs throughout the tenure.

Bajaj Finserv brings Loan Against Property as a long-term loan with one of the longest Mortgage Loan tenure in India. You can avail a loan across tenures as per your form of income, viz. -

  • For salaried individuals – Up to 18 years.
  • For self-employed individuals – Between 2 to 20 years.

Several factors affect the amount you are eligible to avail and the tenure you get for loan repayment. Check them out.

Factors That Affect Loan Amount And Repayment Tenure

a) A Person’s Age

A person’s age and remaining career play a critical role in determining the loan amount he/she is eligible to avail and credit repayment tenure. A person at the career’s beginning may avail a high-value loan amount with longer tenure and vice versa.

b) Existing Financial Obligations

Your existing financial commitments also determine the eligible amount and repayment tenure you may avail. A lower liability may fetch you a longer Mortgage Loan tenure with a high-value loan amount of up to Rs.3.5 Crore.

c) Interest Rate

Opt for a lower rate of interest to enjoy the longest possible repayment tenures based on the loan amount you avail. Bajaj Finserv offers one of the lowest loan against property interest rates and charges on its Property Loan.

Additional Read: How can a CIBIL defaulter get Loan Against Property

d) Property’s Age, Location And Current Market Value

A property’s age, location and market value are equally essential in determining the amount of Loan Against Property you can avail.

Know how to apply for loan with an online form to avail it from Bajaj Finserv and get hassle-free approval and fast disbursal.