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What Is The Maximum And Minimum Tenure For Personal Loans?


by Mahindra Finance


April 18, 2024


4 mins read


Personal loans are a lifeline during times of financial uncertainty. But before you apply for one, it's crucial to understand the terms and conditions, especially the tenure of the loan. The maximum and minimum tenure for personal loans play a significant role in determining your monthly EMIs and overall financial well-being. In this article, we will delve into the complexities of personal loan tenure, equipping you with the knowledge to make informed decisions.

What is a personal loan?

A personal loan is an unsecured loan obtained from a bank or non-banking financial company (NBFC) for personal use. Unlike other loans that require collateral, personal loans are based on factors such as creditworthiness and income. They offer fixed interest rates throughout the loan period, making them predictable and easy to manage.

Benefits of Personal Loans

  1. Minimal Documentation: Personal loans require basic documents such as ID proof, address proof, and income proof, reducing paperwork hassles.
  2. Fixed Loan Term: With a fixed term, you can plan your finances better as monthly payments remain constant.
  3. Lower Interest Rates: Personal loans often have lower interest rates compared to credit cards, making them a cost-effective option.
  4. Debt Consolidation: They can be used to merge multiple debts into one, simplifying your finances.
  5. Quick Access to Funds: Approval processes for personal loans are usually faster than other types of loans.

Maximum Loan Duration for Personal Loans

The maximum tenure for personal loans varies depending on the lender. Most banks and financial institutions offer personal loans with a maximum tenure of 7 years (84 months). This longer duration is beneficial for borrowers with limited monthly income as it spreads the loan repayment over a longer period, reducing the burden of high EMIs.

Minimum Loan Duration for Personal Loans

On the other hand, some lenders may offer personal loans with a minimum tenure as short as 3 months. Shorter tenures can be advantageous for individuals with higher monthly income as they often come with lower interest rates and enable quicker loan clearance. However, it's essential to carefully evaluate your financial situation before opting for a shorter tenure, as higher EMIs might strain your monthly budget.

Factors to Consider While Choosing Personal Loan Tenure

When deciding on the tenure of your personal loan, several factors should be taken into account:

  1. Monthly Budget: Assess your income and expenses to determine if you can manage higher payments with a shorter tenure.
  2. Interest Rate: Longer tenures might have higher interest rates, so it's crucial to assess the total interest outgo over the loan period. You can find out interest rates using personal loan interest rates.
  3. Financial Goals: Aligning your loan tenure with your financial objectives is essential. Consider whether you want quick debt clearance or need flexibility in managing other financial commitments.
  4. Prepayment Options: Opt for flexible pre-payment terms that allow you to clear the loan earlier if possible.
  5. Loan Purpose: Short-term needs might be better served with a shorter tenure, while long-term projects may benefit from a longer tenure.
  6. Age and Future Plans: Take into account your age and future financial stability when deciding on the loan tenure.


Understanding the maximum and minimum tenure for personal loans is crucial for effective financial planning. By considering factors such as monthly budget, interest rates, financial goals, and future plans, you can determine the ideal loan tenure that aligns with your needs. Personal loan apps like iMobile Pay from Mahindra Finance offer the convenience of online applications and tools like EMI calculators to aid in your decision-making process. Remember, a well-thought-out loan tenure will help you make sound financial choices.


Q: How long does it take to apply for a personal loan online?

A: The process of applying for a personal loan online is quick and hassle-free. With platforms like Mahindra Finance's iMobile Pay, you can complete the application process within minutes.

Q: Is there a calculator to calculate personal loan EMI?

A: Yes, most personal loan apps and financial institution websites offer personal loan interest calculators. These personal loan interest calculators help you determine your monthly EMI based on different tenures and interest rates.

Q: What is the maximum tenure for a personal loan?

A: The maximum tenure for a personal loan typically varies from lender to lender. Most banks and financial institutions offer personal loans with a maximum tenure of 7 years (84 months).

Q: What is the minimum tenure for a personal loan?

A: The minimum tenure for a personal loan can vary depending on the lender. Some lenders may offer personal loans with tenures as short as 3 months.

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