{"id":14814,"date":"2023-08-28T19:21:01","date_gmt":"2023-08-28T19:21:01","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=14814"},"modified":"2024-07-04T16:42:23","modified_gmt":"2024-07-04T11:12:23","slug":"short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/","title":{"rendered":"Home Loan Tenure: Short Term loan vs Long term loan &#8211; How to choose?"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Finally decided to move out of the rented apartment and invest in a home of your own? Unless you have a lot of money saved, you might be looking for a home loan to fund this significant purchase. Well, there\u2019s no shortage of lenders providing housing finance in the market. However, before applying for a loan, you must research the best and most affordable home loan option.<\/p>\n\n\n\n<p>Apart from looking for lenders who offer competitive interest rates, you also need to decide the loan\u2019s tenure. In terms of the loan term, you have two options: short\u2013term loans and long-term loans.<\/p>\n\n\n\n<p>Let\u2019s understand the major differences between the 2 comparing short term loan vs long term loan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Short term loan vs long term loan<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Points of difference<\/strong><\/td><td><strong>&nbsp;<\/strong> <strong>Long-term loan&nbsp;<\/strong><\/td><td><strong>&nbsp;<\/strong> <strong>Short-term loan<\/strong><\/td><\/tr><tr><td><strong>Tenure&nbsp;<\/strong><\/td><td>Tenures of long-term loans are usually above five years. For a long-term <a href=\"https:\/\/tata-blog.osian.dev\/home-loan.html\">home loan<\/a>, maximum tenure can go as high as 30 years. &nbsp; &nbsp;<\/td><td>For short-term loans, the tenure is usually five years or less.<\/td><\/tr><tr><td><strong>Mortgage period&nbsp;<\/strong><\/td><td>Since housing finance products are secured, your property won\u2019t be entirely in your name until you pay back the loan. So, with long-term loans, your house will be mortgaged for a larger period. &nbsp; &nbsp;<\/td><td>You will get debt-free quickly and have the house in your name in a shorter duration.<\/td><\/tr><tr><td><strong>Rate of Interest<\/strong><\/td><td> Long term loans are usually spaced out over decades. Hence, lenders charge lower interest rates. &nbsp;<\/td><td>Since the home loan tenure is shorter, lenders charge higher interest rates on short-term loans to compensate for the smaller loan period. &nbsp; &nbsp;<\/td><\/tr><tr><td><strong>EMI Amount<\/strong><\/td><td> Given the longer tenure, the monthly EMI payments will be on the lower side. However, the total money spent on interests will be high due to the longer term. &nbsp; &nbsp;<\/td><td>Since short-term loans are spaced out over a smaller duration, the EMI amount is usually higher. However, the total interest amount on the loan is lower.<\/td><\/tr><tr><td><strong>Disbursement speed&nbsp;<\/strong><\/td><td>A Long-term loan usually has a high sanction amount. This is why lenders need more time to evaluate a borrower\u2019s creditworthiness and repayment capability. Hence, long term loans require substantial time to be disbursed.&nbsp; &nbsp; &nbsp;<\/td><td>A Short-term loan is disbursed swiftly due to the small loan amount and minimal documentation.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p style=\"color:#FF0000\"><strong>Additional Read:<\/strong>&nbsp;&nbsp;<a href=\"https:\/\/tata-blog.osian.dev\/blog\/home-loan\/find-out-how-to-reduce-home-loan-tenure\/\">How to reduce a Home Loan Tenure<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Long term loan vs short term loan: Which one to choose?<\/strong><\/h2>\n\n\n\n<p>There\u2019s no best choice when it comes to deciding between a short or long term loan. It all depends on one\u2019s capabilities and needs. If you wish for cheaper instalments and aren\u2019t bothered by the total amount spent in interest, you can go with the long term option. In contrast, if you wish for a speedy loan disbursal and aren\u2019t concerned about high-interest rates, then short term loans are more suitable.<\/p>\n\n\n\n<p>Besides, it\u2019s critical to keep in mind that age also determines your loan eligibility. If you are in your 30s or 40s, lenders might not provide you with a 20 or 30-year loan, as you will reach the retirement age within the loan tenure.<\/p>\n\n\n\n<p style=\"color:#FF0000\"><strong>Additional Read:<\/strong>&nbsp;&nbsp;<a href=\"https:\/\/tata-blog.osian.dev\/blog\/home-loan\/tips-to-reduce-home-loan-emi\/\">Tips &amp; Tricks to Reduce Home Loan EMI<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>In summation<\/strong><\/h3>\n\n\n\n<p>Planning to buy your dream house? Well, Tata Capital can help you achieve your dreams with affordable housing finance solutions. You can also plan your loan tenure using our home loan tenure calculator. So, what are you waiting for? Visit our website today and start planning using our <a href=\"https:\/\/tata-blog.osian.dev\/home-loan\/home-loan-emi-calculator.html\">home loan EMI calculator<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-group alignwide\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/home-loan.html\">Apply For Home Loan<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Finally decided to move out of the rented apartment and get into a home of your own? Unless you have a lot of money saved. <\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/home-loan\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":14815,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-14814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-home"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Home Loan Tenure: Short Term loan vs Long term loan - How to choose?- Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"What is the ideal Home Loan Tenure? Long Term Vs Short Term? Find out difference between short term loan and long term loan and know the benefits. Know more!\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Home Loan Tenure: Short Term loan vs Long term loan - How to choose?- Tata Capital Blog\" \/>\n<meta property=\"og:description\" content=\"What is the ideal Home Loan Tenure? Long Term Vs Short Term? Find out difference between short term loan and long term loan and know the benefits. Know more!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T19:21:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-04T11:12:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2021\/04\/short-term-loan-vs-long-term-loan.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/\",\"name\":\"Home Loan Tenure: Short Term loan vs Long term loan - How to choose?- Tata Capital Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2023-08-28T19:21:01+00:00\",\"dateModified\":\"2024-07-04T11:12:23+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\"},\"description\":\"What is the ideal Home Loan Tenure? Long Term Vs Short Term? Find out difference between short term loan and long term loan and know the benefits. Know more!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tatacapital.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Home Loan Tenure: Short Term loan vs Long term loan &#8211; How to choose?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/\",\"name\":\"TATA Capital Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\",\"name\":\"Tata Capital\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"caption\":\"Tata Capital\"},\"sameAs\":[\"https:\/\/tata-blog.osian.dev\/blog\"],\"url\":\"https:\/\/tata-blog.osian.dev\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Home Loan Tenure: Short Term loan vs Long term loan - How to choose?- Tata Capital Blog","description":"What is the ideal Home Loan Tenure? Long Term Vs Short Term? Find out difference between short term loan and long term loan and know the benefits. Know more!","robots":{"index":"noindex","follow":"nofollow"},"og_locale":"en_US","og_type":"article","og_title":"Home Loan Tenure: Short Term loan vs Long term loan - How to choose?- Tata Capital Blog","og_description":"What is the ideal Home Loan Tenure? Long Term Vs Short Term? Find out difference between short term loan and long term loan and know the benefits. Know more!","og_url":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/","og_site_name":"TATA Capital Blog","article_published_time":"2023-08-28T19:21:01+00:00","article_modified_time":"2024-07-04T11:12:23+00:00","og_image":[{"width":770,"height":400,"url":"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2021\/04\/short-term-loan-vs-long-term-loan.jpg","type":"image\/jpeg"}],"author":"Tata Capital","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Tata Capital","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/","url":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/","name":"Home Loan Tenure: Short Term loan vs Long term loan - How to choose?- Tata Capital Blog","isPartOf":{"@id":"https:\/\/www.tatacapital.com\/blog\/#website"},"datePublished":"2023-08-28T19:21:01+00:00","dateModified":"2024-07-04T11:12:23+00:00","author":{"@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a"},"description":"What is the ideal Home Loan Tenure? Long Term Vs Short Term? Find out difference between short term loan and long term loan and know the benefits. Know more!","breadcrumb":{"@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-term-loan-vs-long-term-loan-how-to-choose-the-home-loan-tenure\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tatacapital.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Home Loan Tenure: Short Term loan vs Long term loan &#8211; How to choose?"}]},{"@type":"WebSite","@id":"https:\/\/www.tatacapital.com\/blog\/#website","url":"https:\/\/www.tatacapital.com\/blog\/","name":"TATA Capital Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a","name":"Tata Capital","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g","caption":"Tata Capital"},"sameAs":["https:\/\/tata-blog.osian.dev\/blog"],"url":"https:\/\/tata-blog.osian.dev\/blog\/author\/admin\/"}]}},"featured_image_url":"https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2021\/04\/short-term-loan-vs-long-term-loan.jpg","_links":{"self":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/14814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/comments?post=14814"}],"version-history":[{"count":4,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/14814\/revisions"}],"predecessor-version":[{"id":43497,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/14814\/revisions\/43497"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/media\/14815"}],"wp:attachment":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/media?parent=14814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/categories?post=14814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/tags?post=14814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}