[Explained] Repayment period for personal loans in India

When considering a personal loan in India, it’s essential to understand the repayment period offered by lenders. The repayment period is the length of time borrowers have to pay back the loan, including interest. In India, the typical repayment period for personal loans ranges from 2 to 5 years, with some lenders offering terms as long as 7 years. However, the exact repayment period can vary depending on the lender and the borrower’s specific circumstances.

Examples of Repayment Periods Offered by Indian Banks

Union Bank of India

Union Bank of India offers personal loans with a maximum repayment period of 5 years (60 months). However, the repayment should be co-terminus with retirement, meaning that the loan must be fully repaid by the time the borrower retires.

Bank of Baroda

Bank of Baroda’s personal loans have a maximum age limit for borrowers at the end of the repayment period. For salaried individuals, the age limit is 60 years, while for non-salaried individuals, it is 65 years.

J&K Bank

J&K Bank’s personal consumption loan scheme for employees has a maximum repayment period of 120 months (10 years). The repayment commences the month after the loan disbursement. It’s important to note that the repayment must be fixed in such a way that the loan is fully adjusted by or before the employee retires from active service.

Factors to Consider When Choosing a Repayment Period

When selecting a repayment period for a personal loan in India, borrowers should carefully consider their repayment capacity and choose a loan term that fits their financial situation. Some factors to take into account include:

  1. Loan amount: The size of the loan can influence the repayment period. Larger loans may require longer repayment terms to keep monthly installments manageable.
  2. Interest rate: The interest rate on the loan will affect the total cost of borrowing. A longer repayment period may result in lower monthly installments but a higher overall interest cost.
  3. Income and expenses: Borrowers should assess their income stability and monthly expenses to determine a comfortable repayment period that allows them to meet their obligations without financial strain.


By carefully considering these factors and comparing repayment periods offered by different lenders, borrowers in India can choose a personal loan with a repayment term that best suits their financial needs and goals.