New Delhi, May 20 -- While taking a personal loan, it is important to choose the optimum tenure. If the tenure chosen is longer than required, the borrower will end up paying more interest. If the tenure chosen is shorter than required, the higher EMI can put pressure on the borrower's cash flows and disturb the monthly budget. In this article, we will understand the mistakes a borrower should avoid when choosing a personal loan tenure and how to choose the optimum tenure.

A personal loan tenure is the period over which a borrower will pay monthly EMIs to repay the loan. Usually, a personal loan tenure ranges from six months to five years. However, some financial organisations may offer lower or higher tenure than the above-mentioned ran...