Can I change my personal loan tenure after it's approved?

You may be able to change your personal loan tenure after approval depending on your financial institution's policies.

To modify your loan tenure, follow these steps:

Step 1: Reach out to your loan provider's customer service to inquire about their procedures for altering loan tenure.

Step 2: Revisit your loan agreement and understand potential impacts on monthly payments, interest and other conditions.

Step 3: Submit any required paperwork, such as proof of income or a new loan agreement.

Step 4: Once your request is processed and approved, you will receive confirmation from your financial institution.

You might consider changing your loan tenure in these situations:

• If your income changes, adjusting the loan tenure can help maintain manageable monthly payments.
• In case of unforeseen costs, extending the loan tenure could provide temporary financial relief.

Keep in mind the potential effects of changing your loan tenure:

A shorter tenure increases monthly payments but reduces overall interest paid, while a longer tenure decreases monthly payments but increases total interest paid.

Extending the tenure results in higher total interest paid over the loan life, while shortening it decreases total interest paid.

Other loan conditions, such as fees or prepayment penalties, might be affected by altering the loan tenure.

Remember that each financial institution has unique policies, so consult with yours before making decisions. Carefully weigh the benefits and drawbacks of altering your loan tenure, as it can impact your overall loan cost.