There are some factors that need to be analysed before choosing a tenure, these factors are the loan amount, rate of interest, financial plans, and monthly liabilities. If the loan amount is small, one should ideally go for a shorter tenure to reduce the interest liability. Likewise, if the interest rate is less, then prefer a short tenure loan to pay a lesser amount in the loan. If your financial planning has some big purchases in the near future, then take a short tenure loan and repay it as soon as possible. You should opt for a longer tenure only when your monthly expenditure is higher.