Tenor

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DEFINITION of 'Tenor'

The amount of time left for the repayment of a loan or contract or the initial term length of a loan. Tenor can be expressed in years, months or days.

BREAKING DOWN 'Tenor'

For example, if a bank loan is initially extended with a five-year tenor, after three years, the loan will be said to have a tenor of two years.

Tenor is sometimes used interchangeably with "maturity", although tenor is not often used to describe the terms of fixed-income instruments such as government bonds and corporate bonds. Instead, non-standardized contracts like insurance policies and bank loans tend to be described in terms of tenor.

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