{"id":6363,"date":"2017-03-14T11:33:54","date_gmt":"2017-03-14T11:33:54","guid":{"rendered":"\/blog\/?p=6363"},"modified":"2023-05-16T10:55:55","modified_gmt":"2023-05-16T10:55:55","slug":"short-or-long-tenure-which-is-better-for-home-loans","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/","title":{"rendered":"Short or Long Tenure? Which is Better for Home Loans?"},"content":{"rendered":"\n

Home loans are generally considered to be long-term loans, whose\nrepayment can span over a decade or two. Infact, the industry-wide average home\nloan tenure is 15 to 20 years.<\/p>\n\n\n\n

Now it\u2019s common knowledge that compared to other forms of loans, home loans are much cheaper (about 8-9%). Also the fact that tax incentives are given for principal repayment as well as interest payments, ensures that the effective rate of loan is even lower. This is the reason most people prefer to let their home loans continue according to normal schedule even if they have additional funds that can be used for extra repayments.<\/p>\n\n\n\n

But even then, the question remains same. As a borrower, what is in your\nbest interest? A home loan with short or long tenure?<\/p>\n\n\n\n

Let\u2019s try to answer this question.<\/p>\n\n\n\n

Additional Read:<\/strong> Top Factors Affecting Your Home Loan Tenure Decision <\/a><\/p>\n\n\n\n

Mathematically speaking, home loan<\/a> tenure has a direct impact on your EMIs as well as on the total interest you pay.<\/p>\n\n\n\n

Most people prefer to opt for lower EMIs as it is less of a burden on\nmonthly finances. To opt for lower EMI, one has to go for longer tenure loans.\nBut this also means that the total interest being paid over the loan tenure\nwill be higher.<\/p>\n\n\n\n

For a Rs 40 lac\u00a0home loan interest rate<\/a>\u00a0taken at 6.9%\u00a0 :<\/p>\n\n\n\n

EMI for 25 years – Rs 33,568 – (Total Interest Paid for 25 years – Rs 61\nlacs)<\/p>\n\n\n\n

EMI for 20 years – Rs 35,989 – (Total Interest Paid for 20 years – Rs 46\nlacs)<\/p>\n\n\n\n

EMI for 15 years – Rs 40,571 – (Total Interest Paid for 15 years – Rs 33\nlacs)<\/p>\n\n\n\n

As is evident from above, no doubt longer tenure means lower EMI. But it\nalso means that the total interest paid will be much higher. Infact, the\ndifference can run into several lacs.<\/p>\n\n\n\n

Additional Read:<\/strong> Want to Own a Home? Check Out How to Apply for Home Loan <\/a><\/p>\n\n\n\n

So what should you do now?<\/p>\n\n\n\n

You definitely cannot pay a very high EMI in comparison with your monthly income. Lenders themselves don\u2019t allow EMIs to be more than 40% of your total income. <\/p>\n\n\n\n

So chose an EMI that you can comfortably repay month after month. But if possible and if your finances permit, try to pay higher EMIs and opt for shorter tenure.<\/p>\n\n\n\n

Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Home loans are generally considered to be long-term loans, whose repayment can span over a decade or two.<\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":6364,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-6363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-home"],"yoast_head":"\nShort or Long Home Loan Tenure? Which is Better for Home Loans? - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"Here's all about home loan tenure that will help you choose the best Home Loan option. Whether to choose short term or long-term loan. Read this blog to know more about home loan tenure!\" \/>\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=\"Short or Long Home Loan Tenure? Which is Better for Home Loans? - Tata Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Here's all about home loan tenure that will help you choose the best Home Loan option. Whether to choose short term or long-term loan. Read this blog to know more about home loan tenure!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2017-03-14T11:33:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-16T10:55:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/short-or-long-tenure.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"348\" \/>\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=\"2 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-or-long-tenure-which-is-better-for-home-loans\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/\",\"name\":\"Short or Long Home Loan Tenure? Which is Better for Home Loans? - Tata Capital Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2017-03-14T11:33:54+00:00\",\"dateModified\":\"2023-05-16T10:55:55+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\"},\"description\":\"Here's all about home loan tenure that will help you choose the best Home Loan option. Whether to choose short term or long-term loan. Read this blog to know more about home loan tenure!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tatacapital.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Short or Long Tenure? Which is Better for Home Loans?\"}]},{\"@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":"Short or Long Home Loan Tenure? Which is Better for Home Loans? - Tata Capital Blog","description":"Here's all about home loan tenure that will help you choose the best Home Loan option. Whether to choose short term or long-term loan. Read this blog to know more about home loan tenure!","robots":{"index":"noindex","follow":"nofollow"},"og_locale":"en_US","og_type":"article","og_title":"Short or Long Home Loan Tenure? Which is Better for Home Loans? - Tata Capital Blog","og_description":"Here's all about home loan tenure that will help you choose the best Home Loan option. Whether to choose short term or long-term loan. Read this blog to know more about home loan tenure!","og_url":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/","og_site_name":"TATA Capital Blog","article_published_time":"2017-03-14T11:33:54+00:00","article_modified_time":"2023-05-16T10:55:55+00:00","og_image":[{"width":770,"height":348,"url":"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/short-or-long-tenure.jpg","type":"image\/jpeg"}],"author":"Tata Capital","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Tata Capital","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/","url":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/","name":"Short or Long Home Loan Tenure? Which is Better for Home Loans? - Tata Capital Blog","isPartOf":{"@id":"https:\/\/www.tatacapital.com\/blog\/#website"},"datePublished":"2017-03-14T11:33:54+00:00","dateModified":"2023-05-16T10:55:55+00:00","author":{"@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a"},"description":"Here's all about home loan tenure that will help you choose the best Home Loan option. Whether to choose short term or long-term loan. Read this blog to know more about home loan tenure!","breadcrumb":{"@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/short-or-long-tenure-which-is-better-for-home-loans\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tatacapital.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Short or Long Tenure? Which is Better for Home Loans?"}]},{"@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\/2020\/01\/short-or-long-tenure.jpg","_links":{"self":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/6363","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=6363"}],"version-history":[{"count":6,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/6363\/revisions"}],"predecessor-version":[{"id":32602,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/6363\/revisions\/32602"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/media\/6364"}],"wp:attachment":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/media?parent=6363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/categories?post=6363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/tags?post=6363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}