Answer: B. Repayment duration Tenure is the scheduled duration over which the loan is repaid.
Which detail determines the number of scheduled instalments?
A Tenure and payment frequency
B Borrower’s phone model
C Lender’s office size
D Property paint color
Answer: A. Tenure and payment frequency The repayment period and payment frequency determine how many instalments are scheduled.
With other terms unchanged, what can a shorter tenure do?
A Erase the principal
B Guarantee a lower rate
C Remove all charges
D Raise EMI, reduce total interest
Answer: D. Raise EMI, reduce total interest A shorter period usually raises each instalment while reducing total interest when other terms remain the same.
With other terms unchanged, what can a longer tenure do?
A Cancel repayment
B Remove the lender’s charges
C Lower EMI, raise total interest
D Guarantee approval
Answer: C. Lower EMI, raise total interest A longer term can reduce each payment but increase the total interest paid.
Why can a low EMI be misleading?
A It always lowers total cost
B It may use longer tenure
C It cancels principal
D It excludes repayment
Answer: B. It may use longer tenure A low EMI may reflect a longer term and higher total interest, so compare the full cost.
Before selecting a tenure, what should a borrower assess?
A Budget and total cost
B Only the first EMI
C Only the loan advertisement
D Only the lender’s logo
Answer: A. Budget and total cost A borrower should compare affordability with total interest and other loan costs.
How does tenure differ from interest rate?
A They mean the same thing
B Tenure is a fee
C Rate is a due date
D Time versus borrowing cost
Answer: D. Time versus borrowing cost Tenure describes repayment time, while the interest rate prices the borrowing.
Which document shows the agreed repayment period?
A A promotional banner
B A vehicle brochure
C Sanction and loan agreement
D A tax receipt
Answer: C. Sanction and loan agreement The sanction and agreement record the lender-approved tenure and repayment conditions.
What does remaining tenure describe?
A Original loan amount
B Time left to repay
C Past interest paid
D Collateral’s sale price
Answer: B. Time left to repay Remaining tenure is the scheduled time left before the loan’s maturity, subject to changes.
How can a rate rise affect remaining tenure?
A It may extend repayment time
B It removes the loan balance
C It changes the borrower’s age
D It cancels the agreement
Answer: A. It may extend repayment time If EMI stays unchanged after a floating-rate increase, the lender may extend the tenure.
When rates reset, what tenure choice may be offered?
A Automatic loan cancellation
B Immediate collateral transfer
C No future repayment
D Extend tenor or raise EMI
Answer: D. Extend tenor or raise EMI RBI reset guidance includes increasing EMI, extending tenor, or combining both.
Can every borrower assume a fixed tenure after a floating-rate reset?
A Yes, all resets freeze tenure
B Yes, rates never move
C No, review lender notice
D No, tenure is never disclosed
Answer: C. No, review lender notice Floating-rate changes can affect EMI, tenure, or both under the contract and applicable directions.
Why check a revised repayment schedule?
A Change the loan purpose
B Track new end date
C Set a credit score
D Remove the lender
Answer: B. Track new end date A revised schedule shows updated instalments and the remaining repayment period.
What is loan maturity?
A Scheduled end of repayment
B The first EMI date
C A processing charge
D A credit score review
Answer: A. Scheduled end of repayment Maturity is the contractual end point for the scheduled repayment, subject to changes.
Which factor can make the same loan amount take longer to repay?
A A larger down payment
B A lower interest rate always
C Fewer scheduled instalments
D Lower regular payments
Answer: D. Lower regular payments Smaller regular payments may extend repayment time when other terms remain similar.
Why might a borrower choose a shorter tenure?
A Reduce every payment
B Avoid all fees
C Pay less total interest
D Guarantee a rate cut
Answer: C. Pay less total interest A shorter term can reduce total interest but requires larger scheduled payments.
What should be checked before requesting a tenure extension?
A Only the branch color
B Lender approval and revised cost
C Only the app logo
D Only a friend’s opinion
Answer: B. Lender approval and revised cost Changing the loan period may need lender approval and can affect EMI and total cost.
Does requesting a longer tenure automatically change the contract?
A No, lender must approve
B Yes, it is automatic
C Yes, without notice
D No, contracts cannot change
Answer: A. No, lender must approve A tenure change should be confirmed through the lender’s approved revised terms.
How can a part-prepayment affect tenure?
A It always raises principal
B It cancels all records
C It changes the original amount
D It may shorten remaining period
Answer: D. It may shorten remaining period A lender may apply a part-prepayment to shorten tenure or reduce EMI, depending on terms and borrower choice.
After part-prepayment, what should be requested?
A A new PAN
B A blank loan form
C Updated repayment schedule
D An unrelated tax receipt
Answer: C. Updated repayment schedule An updated schedule shows how the payment affects principal, instalments, or the end date.
Which payment structure has a large final amount?
A Equal monthly repayment
B Balloon repayment
C A processing fee
D A grace period
Answer: B. Balloon repayment A balloon structure leaves a comparatively large payment due at the end.
What risk should be considered with a balloon structure?
A Large final payment
B No final amount due
C Automatic debt cancellation
D Guaranteed rate reduction
Answer: A. Large final payment A borrower should plan for the large scheduled payment at maturity.
How does a step-up repayment plan change instalments?
A Payments disappear after approval
B Interest becomes zero
C Tenure is always one month
D Payments rise over time
Answer: D. Payments rise over time A step-up schedule increases payments at planned intervals, so future affordability matters.
Before accepting step-up payments, what should be reviewed?
A Only the first payment
B Only lender branding
C Future EMI amounts
D Only past statements
Answer: C. Future EMI amounts The borrower should confirm future instalments fit expected income and other commitments.
What can a moratorium do to a repayment timeline?
A Forgive the principal automatically
B Defer payments temporarily
C Set interest to zero
D Close the loan
Answer: B. Defer payments temporarily A moratorium may defer scheduled payments, but interest and revised timing depend on the loan terms.
Does a payment moratorium automatically shorten the loan?
A No, schedule may extend
B Yes, every loan closes sooner
C Yes, the balance disappears
D No, it cancels the lender
Answer: A. No, schedule may extend Deferred payments can affect the repayment schedule, and the lender’s terms determine the revised end date.
What should be checked during a moratorium?
A The lender’s logo
B The borrower’s phone model
C The property’s paint
D Interest and revised tenor
Answer: D. Interest and revised tenor The agreement should explain whether interest accrues and how repayments resume.
For a construction loan, what can staged disbursal affect?
A Borrower’s course grades
B Property’s street name
C Repayment start and interest
D Lender’s office hours
Answer: C. Repayment start and interest Staged disbursal can affect when interest applies and when full instalments begin, according to the product terms.
How can pre-EMI differ from regular repayment?
A It always repays full principal
B It may cover disbursed interest
C It closes the loan
D It replaces the agreement
Answer: B. It may cover disbursed interest Some lenders charge interest on disbursed amounts before regular EMIs begin; terms vary.
Why compare tenure alongside APR?
A See total borrowing cost
B Change the lender’s name
C Set property ownership
D Avoid checking fees
Answer: A. See total borrowing cost APR and tenure together help show both annual credit cost and how long it is paid.
Which calculator input changes the number of instalments?
A Collateral color
B Branch postcode
C Application title
D Tenure
Answer: D. Tenure Changing the tenure changes the number of periods used in an EMI estimate.
How should a calculator’s tenure result be treated?
A As guaranteed loan approval
B As the signed agreement
C As an estimate
D As a fixed future rate
Answer: C. As an estimate An online calculator uses assumptions and does not replace the lender’s sanction or final schedule.
When comparing two loan tenures, what should be held in view?
A Only the lender’s logo
B EMI and total interest
C Only application speed
D Only a sales slogan
Answer: B. EMI and total interest The monthly payment and full cost should both be considered.
What can happen if instalments are missed repeatedly?
A Arrears may extend repayment
B The loan automatically vanishes
C Interest is always waived
D Tenure becomes zero
Answer: A. Arrears may extend repayment Unpaid instalments can create arrears and affect the repayment schedule under the contract.
Which notice may show a tenure change after rate revision?
A A vehicle invoice
B A school timetable
C A utility receipt
D Lender reset communication
Answer: D. Lender reset communication Banks are required to communicate changes in EMI or tenor caused by a rate reset.
Why keep the original sanction letter?
A Change the benchmark rate
B Remove interest automatically
C Verify agreed tenure
D Avoid every EMI
Answer: C. Verify agreed tenure The sanction letter helps verify the original tenure and other approved terms.
What does an amortization schedule reveal about tenure?
A A future credit score
B Payment dates through maturity
C A guaranteed property value
D The lender’s annual profit
Answer: B. Payment dates through maturity The schedule maps instalments across the agreed repayment period.
How can extra regular payments affect the loan end date?
A They may shorten repayment
B They always lengthen tenure
C They remove the interest rate
D They change the borrower’s PAN
Answer: A. They may shorten repayment Extra principal payments may shorten repayment time if the lender applies them to reduce the balance.
Before paying extra toward principal, what should be checked?
A Only app background
B Only lender name
C Only a promotional offer
D Payment allocation and charges
Answer: D. Payment allocation and charges The borrower should confirm how the lender applies extra payments and whether any charges apply.
Which tenure may fit a tighter monthly budget but cost more?
A Shorter tenure always
B No tenure
C Longer tenure
D One-day tenure
Answer: C. Longer tenure A longer term can lower monthly instalments while increasing total interest.
Which tenure may reduce total interest but require larger EMI?
A Longer tenure always
B Shorter tenure
C No repayment period
D A moratorium
Answer: B. Shorter tenure A shorter period generally requires higher instalments but can lower total interest, all else unchanged.
Can a borrower compare loan offers by tenure alone?
A No, review APR and fees
B Yes, terms never matter
C Yes, all lenders match
D No, comparison is impossible
Answer: A. No, review APR and fees Tenure alone does not show the full cost; compare APR, fees, and repayment conditions.
When should a borrower confirm the final loan tenure?
A After the final EMI
B Only after missing payments
C After selling the asset
D Before accepting agreement
Answer: D. Before accepting agreement The approved tenure should be confirmed in the documents before the borrower accepts the loan.
What should a borrower do if the lender’s end date changes unexpectedly?
A Ignore the new schedule
B Stop all repayments
C Request a written explanation
D Delete the loan account
Answer: C. Request a written explanation A written explanation helps the borrower understand the change and compare it with the contract.
Why can tenure affect total interest even if EMI is affordable?
A The principal is forgiven
B Interest accrues for longer
C Fees become negative
D Rate disappears
Answer: B. Interest accrues for longer A longer repayment period can mean interest is charged for more time.
Which term identifies the period between disbursal and final payment?
A Loan tenure
B Processing charge
C Credit score
D Collateral margin
Answer: A. Loan tenure Tenure refers to the scheduled repayment period from disbursal to the final payment.
What supports a realistic tenure choice?
A Only a low first EMI
B Only a dealer’s advice
C Only the maximum offer
D Budget, risk, and total cost
Answer: D. Budget, risk, and total cost A realistic choice balances payment capacity, interest cost, and other contractual conditions.
After the final scheduled instalment, what should the borrower confirm?
A A new tenure
B Another application
C Loan account closure
D An extra EMI
Answer: C. Loan account closure The borrower should confirm the loan is fully settled and obtain closure records.
At sanction, what should a bank explain about benchmark changes?
A Possible EMI and tenor effects
B Guaranteed interest-rate reduction
C Automatic loan cancellation
D Borrower credit score deletion
Answer: A. Possible EMI and tenor effects RBI directions require banks to explain at sanction how benchmark changes may affect EMI, tenor, or both.
For a proposed tenure extension, what should be compared?
A Only the first payment
B New EMI and total cost
C The lender’s office color
D The old application date
Answer: B. New EMI and total cost An extended term can change both the payment and the total interest, so compare the revised schedule and costs.