A consumer durable loan makes it easier for you to achieve your personal goals. It is like someone paying on behalf of you for the goods you want and you getting the privilege to repay it over a fixed, pre-decided period. Amount lent by the financier is utilized for the purchase of consumer durables like television, refrigerator, washing machine, air conditioner, smartphone, etc.
Of course, it attracts some interest and a nominal processing fee, but allows to purchase things that you need without disturbing your savings The best part being that it makes you self-reliant rather than looking forward to help from external sources like family and friends. The amount disbursed by the lending company or banks towards a consumer durable loan is paid back in the form of Equated Monthly Instalments, also known as the EMI.
A consumer durable loan is comparably fast and easy to avail, thanks to minimal documentation and instant approvals. The loan amount depends on the product, a consumer wishes to procure. It could range from a few thousands to a few lakhs. The repayment tenure is decided as per the cost of the durable purchased and usually ranges anywhere between 3 months to 5 years.
You are eligible to avail a consumer durable loan if you are above 20 years of age and have a steady source of income. All you need to do is submit your proof of identity, residence and income. You can either apply online or at dedicated outlets of the specific lenders.
The interest rates could range between 15-22% depending on whether you are a salaried employee or self–employed. Some lenders offer interest-free loans where the interest component is sub-vent and passed on to the finance company directly by the manufacture or retailer.
Nowadays, many NBFCs like Bajaj FinServ, Home Credit and banks like HDFC, ICICI, Tata Capital etc. are offering consumer durable loans. Consumers can compare their offerings and select the best option for their requirements based on the interest rate, EMI and processing charges. Some of these offer added incentives like 100% finance options, nil foreclosure charges, on the spot approvals etc. on these loans which further reduces the strain off your personal savings and finances, taking you a step closer to your dreams.