When you apply for a loan, one of the main factors to consider is how long it will take you to repay it. You should make sure that the type of loan you choose has a favourable loan tenure, so you are confident in your abilities and financial prospects to pay it back on time. In this article, we will dive deeper into loan tenure, how it can affect the overall cost of your loan, and how you can find the best loan tenure for your needs.

What is a loan tenure?

The simple meaning of a loan tenure is the duration it takes for one to repay a loan in monthly instalments, including interest rate and any other necessary fees. It is also known as the loan repayment period, which lasts up until the due date of the final payment.

Different banks and financial institutions have varying loan tenures, and these usually depend on a variety of factors, such as your personal profile, creditworthiness, the type of loan being applied for, and the amount being borrowed. In general, personal loan tenure ranges from a few months to several years.

How does loan tenure affect my monthly payments?

It is important to remember that the tenure of a loan will affect your monthly payment amount. Longer personal loans tend to result in lower monthly payments but with higher interest rates, which means that you pay more interest over the duration of the loan. Shorter personal loans will generally have higher monthly payment amounts yet lower total interest rates.

This means you should consider the implications of your loan tenure in terms of personal income, any debt you have, and other monthly expenses in addition to your loan.

With a comparison website like Lendela, you can compare and select the best personal loans in Singapore with your optimal tenure from multiple banks and financial institutions. By filling out a short application with your details, you can find the best option that suits your specific needs. Learn more about how Lendela’s one-stop platform works.

Factors that determine loan tenure

When you apply for a personal loan, there are several factors that the bank or financial institution will take into consideration to determine your loan tenure:


Your age plays a vital part in deciding your loan tenure. Those who are younger, such as workers in their 20s or 30s who have many years of work ahead of them, are likely to have longer loan tenures compared to those who are reaching retirement age.


As you will be paying off your loan in monthly instalments, it is expected that higher income earners would have a shorter loan tenure as they have the ability to pay back larger amounts per month. Vice versa is true for lower income earners, where they might have a longer loan tenure in order to pay back smaller repayment sums over time.

Loan type and purpose

Depending on the type of personal loan you want to take out in Singapore, the maximum loan tenure will vary. For instance, short-term loans or payday loans will generally have a shorter loan tenure of a few months, whilst larger loans for private property mortgages or home loans could have a maximum loan duration of up to 30 years.

Loan amount

Similar to the above, if you are taking out a larger loan, then your loan tenure will typically be longer. This provides a more realistic and affordable way for you to pay off the loan amount within the given time frame. Large loans with short loan tenures may surpass your monthly budget and result in financial consequences.

How to calculate loan tenure with Lendela

You can go about calculating your ideal loan tenure in many ways, but Lendela makes the process hassle-free for you. With 1 single application, you can receive personalised loan offers from a variety of banks and financial institutions that fit your loan tenure preferences according to your loan amount, annual income, and other details. You can also use our Personal Loan Calculator to easily calculate your loan interests and monthly repayments and find the best personal loan option in Singapore, along with a loan tenure you feel comfortable repaying.

Key Takeaways

  • Loan tenure, also known as loan repayment period, is the duration it takes to repay a personal loan in monthly instalments.
  • Different loan tenures suit a range of ages, incomes, loan types, and loan amounts.
  • Longer personal loans generally have lower monthly payments but higher interest rates.
  • Shorter personal loans typically involve higher monthly payments but lower interest rates.
  • The best personal loan tenure option depends on an individual's financial circumstances and their ability to pay off the loan amount within the given time frame.
  • Lendela’s personalised loan application process allows you to calculate your ideal loan tenure, by taking your loan amount, annual income, and other preferences into consideration.