The possibility of increasing the tenure for Personal Loan for self employed depends upon your lender’s decision. The tenure may be increased if your lender sees that your salary has not increased but the instalments have. But then if your retirement is near then the tenure increase has lesser chances. One thing you need to keep in mind that, with the extension of your tenure, the loan amount increases.
The EMI will be decreased with the increase of your tenure. Both the EMI and tenure for Personal Loan for self employed play a crucial role in your loan repayment process. Consult with your financial advisor before deciding on extending your tenure. With extended tenure, high interest will be levied which might become a hassle for you in the long run as you will be paying more.
If you are likely to get a promotion soon then there should be an increment in your salary which will not affect your budget much if you extend your tenure. Deeply analyze your monthly expenditure and savings before taking this step. Budgeting is very important if you have a high loan amount to repay with interest.
Foreclosing Charges for Personal Loan for Self Employed:
- It vary quite a lot from bank to bank and from NBFCs. Some do not have any foreclosing charges for personal loans for self employed at all while for others it might range from 3% to 6% on the balance principal amount that is yet to be paid.
- Some do not want to pay this additional interest and opt out of foreclosing if the calculations show that they will eventually end up paying more with the interest accrued on the balance.
- Most of the banks will also not allow the borrower to pre-close the loan within the first 6 months or the first year from the first month of the loan.
- By the time the first twelve months are paid off, a significant amount would have gone towards paying off the interest and very little would have gone towards the repayment of the principal sum.
- There are other Fees and Charges for Personal Loan for self employed as well and they differ from bank to bank but the foreclosing charges are more or less between 3% to 6%. NBFCs have some of the best rates and the clients do not have to pay a lot towards foreclosure.