More than ever today, the demand for consumer durable products like ACs, refrigerators, TVs, smartphones, laptops, furniture and other home appliances has hit a high point. We want our lives to be comfortable. A Consumer Durable loan is a smart way to acquire household goods faster. If it is a 0% loan, it is certainly a ‘smart’ way of getting a loan.
You must read and study the conditions of taking the loan. Look carefully for hidden costs, for then only will you be fully aware of all aspects. Then you can decide whether, under the current conditions, it is feasible for you to take a loan.

How to make a sensible decision

During festivals, we see banks and other financial institutions offering special festive season loans that allow consumers to purchase consumer durables.
Here are some tips to keep in mind.
Consider all angles and make a wise choice. The ability to pay back which must fit into your financial scheme of things. A tempting offer can be a great option, if you are aware of the obligations and if you are convinced that you can comfortably adjust to the loan conditions. In fact, 0% is a good offer because with minimal (considering the processing fee) or without additional costs at all (if the fee is not applied), it allows people to avail of important goods quicker.
Check out the facts. A consumer durable loan may seem tempting, because you do not have to pay a steep interest rate like that in a credit card (where the annual rate of interest may be anything between 36-40 per cent) or a personal loan (12-14 per cent). However, do check out the real facts, by taking into consideration other costs such as the processing fee (that may be 2-3 per cent of the total cost of the product).
Further, you will be expected to make a down payment of at least one to three EMIs. These terms and conditions differ from one lender to the other. Read the fine print carefully before you accept.
Loans available on allproducts, almost. During festive season, lenders usually enter into agreements with certain top brands. So, the consumer durable that you may have in mind, may not fall under the ambit of such an offer. Besides these offers come with deadlines, which means you may be compelled to make the purchase when you are not really comfortable with it, financially speaking.
It’s important to check out your current financial commitments. Before availing of any loan, consider your financial state of affairs. Ask yourself – Am I in a condition to take on the loan? Consider the fact that this actually means some fixed amount will have to be paid every month as EMIs. You should be comfortable making timely payments, and it should fit in with your income, without creating any financial problems. It sure feels good to buy goods that will make your life happier. So, make a correct assessment and then reach out, to clinch the deal.