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How To Choose A Home Loan Tenure That Suits You?

Sep 21, 2023
How To Choose A Home Loan Tenure That Suits You?

Buying a house for their family is every person's dream. Everyone has specifications concerning their home and wants to spend their hard money efficiently to purchase or build their dream house. While going house hunting, many factors need to be considered, such as the location of the house, proximity to good schools, distance from the market, and water supply conditions, to name a few.

Many people take out loans to finance the home of their dreams, and they should very minutely consider all the requirements and go for the most suitable one. In this article, you will learn in detail about home loan tenure, a critical aspect of home loans.

What Do You Mean By Home Loan Tenure?

While applying for a home loan, you pre-determine specific parameters concerning the loan. Home loan tenure is a pre-determined time frame in which you will return the funds taken on the loan to the bank. This period decides the EMI you pay and the interest rate levied on the loan. Hence, it becomes a deciding factor when applying for a home loan.

What is The Ideal Home Loan Tenure?

The home loan tenure depends on various factors such as interest rate, EMI, finances, retirement age, expenses, etc. The factor holds different weights for different people. Hence, there is no correct or universal answer to this question. A longer home tenure can result in low monthly payments but high-interest rates. Therefore, the ideal home loan tenure should balance the two according to your requirements.

What Factors Should You Consider While Deciding Upon The Home Loan Time Period?

There are many factors that affect home Loan tenure in India, but some of the most deciding ones are discussed below:-

  • Loan Amount-
    The loan amount is a significant factor affecting the home loan duration. According to your income, the period should be enough to pay your EMIs comfortably.
  • Age of The Borrower-
    The borrower's age plays a massive role in deciding the loan tenure. Lenders want to ensure the repayment of the money lent. Hence, many financial institutions provide a tenure till the borrower's retirement age, usually 60 years for the salaried class. For others, they can offer a maximum tenure of 30 years.
  • Existing Loans-
    You should consider any existing debt before deciding on the home loan length. If you have any other loan, you can get a long tenure so you are not burdened immediately.

Short-Term Vs. Long-Term Tenure: Which One Is Better?

Both long-term and short-term loans have their advantages and disadvantages. The differences are based on certain aspects, which are discussed below:-

  • Tenure- A long-term tenure is one that is longer than 5 years. The housing loan maximum tenure is 30 years.If you wish to make your financial repayments more comfortable, you can choose the former.
  • Mortgage Period- The longer the tenure, the longer the mortgage period. You will get ownership of your property sooner with the short-term loans and later with the long-term loans.
  • EMI- EMI is usually lower in the long term and higher in the short run.This is because a certain amount to be paid gets distributed over a longer duration, reducing the EMI.The opposite is true for short-run loans.
  • Interest rates- You will have to pay higher interest rates in long-term tenures, while the rates are lower in short-term ones.


Purchasing a house is a significant milestone in a person's life. People save money to buy a house where they can live peacefully with their families. But it is also essential to plan the finances efficiently. Hence, you should consider all the home options before finalizing one.

You can also check out the Home Loan from SFMG Grihashakti options. You can get a home loan of up to INR 1 crore and up to 90%* of the property value. The maximum tenure is 30 years. There are no hidden charges and a minimal processing fee. The interest rate is 9.5%* per annum for salaried individuals and 10.5%* for self-employed individuals.


What is the maximum & minimum tenure for a home loan?

The maximum tenure for a home loan is 30 years. The house loan minimum tenure is short-term housing loan repayment whose duration is less than or equal to 5 years.

Is it better to take a home loan for 15 or 20 years?

The tenure of the home loan depends on personal preferences.

What is the tenure of a home loan?

The tenure of the home loan is a time frame in which you will return the loan taken to the bank.

Can we get a home loan for 10 years?

Yes, you can avail the loan for a period of 10 years.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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