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Choose the Right Loan Tenure: Pay Less Interest with Smart Planning

The tenure you pick determines both EMI affordability and total interest outgo. Use these rules to align with your income growth, risk tolerance, and goals.

Published: November 4, 2025By: INSINEX Team

Table of Contents

Tenure trade-offs

Longer tenure lowers EMI but increases total interest. Shorter tenure raises EMI but cuts interest significantly.

Practical rules of thumb

  • Keep EMI ≤ 30–40% of take-home income.
  • Choose the shortest tenure you can comfortably afford.
  • Expect income growth? Start shorter or prepay early.

Prepayment and part-payment

Small, regular prepayments early in the tenure have outsized impact on interest saved. Check lender rules.

Plan with tools

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