How should I choose the loan tenor?

Your loan tenor will directly affect your monthly repayment amount. When choosing a loan tenor, bear in mind how much you need to repay each month, and how you can make the repayments without affecting your daily expenses and everyday habits.Choose a tenor according to your financial capabilities. A longer loan tenor will give you more time to repay the loan, but will usually have a higher interest rate as well. Generally speaking, don't borrow for longer than how long you plan on keeping the item you're purchasing.

Was this article helpful?