PROPGUIDE − A Complete Property Guide
#happyhome

An Explainer: Tenure

Loading video...

Description

If you are taking a loan to finance the purchase of your dream home, an understanding of the term ‘tenure’ is important for you. Primarily a banking jargon, tenure is often used interchangeably for ‘due date’. However, tenure and due date are not the same. For example, if your bank grants you a loan for 20 years, the 20-year period is the tenure within which you have to repay your loan. The total amount to be repaid during this tenure – that is, the principal amount plus interest for the said period – is broken down into equated monthly instalments (EMIs). You have the option of either paying the full amount in EMIs over the entire tenure, or pre-paying the amount before the end of the tenure. Most banks charge you a fee for repaying the loan before the end of the tenure.

While in case of an unsecured loan, such as a personal loan, the tenure can stretch from one year to 10 years, the tenure for a secured loan like home loan can go up to 30 years.

If you want to stretch the tenure of your loan beyond the pre-set duration to reduce your EMI, you will have to go through a process for it. Any default on the repayment tenure will subject you to a penalty from the lender.

Tags: home loan, Real Estate, EMI, Video, bank


#Budget2017: Affordable Housing To Get Infrastructure Status

After Finance Minister Arun Jaitley presented the Union Budget 2017-18, Prime Minister Narendra Modi said the housing sector stood to gain immensely from the new announcements.

February 01 2017

+ Click Here To Read This Article

How Does Paying An Extra EMI In A Year Help You?

Often, our limited income does not allow us to save enough to pre-pay our home loan and get done with it as soon as possible. However, even a humble start will be a giant step towards battling the burden.

February 23 2017

+ Click Here To Read This Article

After SBI, Other Banks Slash Home Loan Interest Rates

Private majors ICICI Bank and HDFC Bank have reduced the interest rate for loans up to Rs 30 lakh to 8.35 per cent.

May 16 2017

+ Click Here To Read This Article

Looking For A Budget House? You Can Bank On EPFO To Withdraw Upto 90% Of Deposits

Retirement fund body EPFO will to finance low-cost housing for its 50 million subscribers.

April 25 2017

+ Click Here To Read This Article

#RealtyNewsRoundup: Home Loan EMIs To Attract GST

Here are today’s top news stories from the real estate sector.

March 29 2017

+ Click Here To Read This Article

#RealtyNewsRoundup: Naidu Releases Home Loan Subsidy Guidelines Under PMAY [Video]

Here are today’s top news stories from the real estate sector.

March 24 2017

+ Click Here To Read This Article

When Will My Rental Income Actually Start Looking Like Profit?

Most of us invest in the property markets in hopes of earning a solid rental income as soon as we are finished doing the deal. However, depending on several factors, it might take a bit before you start earning healthy returns on your investment.

February 24 2017

+ Click Here To Read This Article

5 Things Prospective Home Buyers Must Do

Right when you decide on a timeline within which you would want to become a property owner, you have to start  on many small and big aspects of your life. There are many dos and donts that prospective home buyers have to follow to ensure a smooth property transaction.  

February 17 2017

+ Click Here To Read This Article

Here are the week’s top stories from the real estate sector.

Here are today's top stories from the real estate sector.

PropGuide lists localities in Ahmedabad that offer unlimited choices if you are looking to buy a...

The benefits of property ownership are not just monetary. There are so many other ways in which...

The Goods And Services Taxes has clearned a proposal to charge a cess of 15 per cent on luxury cars...

The Union Cabinet has approved the Noida-Greater Noida Metro Rail project, covering a length of...

Here are some of the features that modern-day homebuyers look for in a luxury home.

PropGuide lists top four pockets of Pune that are a hit among high-net-worth individuals, planning...

A building code is a set of norms that govern construction of buildings by stipulating minimum...

PropGuide simplifies complex real estate jargons for you.

Prime lending rate is the interest rate at which banks lend to its most credit worthy...

Proptiger has released it's quarterly review report on India's real estate sector. Ankur Dhawan,...

Subscribe Now

To stay tuned with real estate updates

Pick:

x +

Drop Your Query Here


Top