Always consider the term of the loan because the longer the term, the more interest you have to pay. Compute for the optimum term. For example, if you can afford the installments for a 5-year term then don’t take the offer of 10-year term with a comfortable installment amount. That’s always the trick of credit officers when it comes to their loans, they always try to maximize the client’s capability to pay.
Apart from how much interest you are paying for your loan, the loan duration is also important. Longer the duration, more money you will be paying. Your EMI (easy monthly installments) will be small if you have longer term for the loan clearance, but you will end up paying more money as interest. When your loan term is short, you will be paying high EMI, but also the amount you pay as interest will be small.
