Have you ever wanted to buy a smartphone, a new LED TV, or a fancy three-door refrigerator but found the prices were too high for your budget? You're not alone. That's where a consumer durable loan can help. This type of loan allows you to purchase the items you want and pay for them over time, making it easier to manage your finances without paying for everything all at once.
Consumer durable loans have become increasingly popular in India. These loans enable individuals to purchase essential household goods without immediate financial burden. So, in this blog, we highlight the 7 benefits of a consumer durable loan that you need to know.
Lenders offer consumer durable loans to help individuals purchase durable goods such as electronics, home appliances, furniture, etc. These loans aim to ease the financial stress by providing easy EMIs and flexible repayment tenures. You can take an amount to buy anything and repay the loan amount in EMIs throughout your chosen tenure.
A consumer durable loan offers attractive features and benefits, making it simple for consumers to access and manage credit for their desired products. These loans differ from the EMI facilities you get using credit or debit cards.
Now that you understand a consumer durable loan, let’s briefly discuss its benefits.
You need not wait to save the full amount to purchase your favourite gadget; apply for a consumer durable loan online to acquire household items when needed. These loans provide quick and easy financial support for your items.
The documentation process for a consumer durable loan is hassle-free and simple. You need only minimal documentation; these include identity proof, address proof, and income proof. Self-employed individuals and salaried professionals may need to submit different documents. The approval process is quick and usually gets approved on the same day.
Some lenders provide 100% financing for your purchases, meaning customers don’t need to worry about the down payment when buying a product. You can repay the loan in EMIs later on. The minimum loan amount can start from as low as ₹10,000.
In a consumer durable loan, you get to repay the borrowed amount in the tenure of 6 to 48 months. These flexible repayment options make it easier for you to choose an EMI plan that matches your financial capacity.
Consumer durable loan interest rates usually start at 10% p.a. and are influenced by the product cost (loan amount) and the applicant’s credit history, employment type, salary, tenure, etc. Lenders offer loans at attractive interest rates with flexible repayment. It is essential to check the interest rate to ensure a pocket-friendly repayment.
Some lenders offer automatic EMI conversion for purchases above a specific amount. The EMI is detected automatically from the registered bank without any manual submits. This helps customers to repay the loan online at any location and time.
If you have a low CIBIL score, taking a consumer durable loan can help you improve your credit score with timely EMI payments. You can also establish a credit history by taking a smaller loan if you don’t have one.
Also Read: How to Get an Instant Personal Loan with Low CIBIL Score
Salaried employees and self-employed individuals (among others) are eligible to apply for a consumer durable loan, which can help fund the purchase of items like electronics, appliances, and other essentials. However, to qualify, you must meet certain financial criteria, including having a minimum credit score.
Generally, a CIBIL score above 700 is considered ideal as it reflects good creditworthiness and increases your chances of loan approval. Lenders may also assess your income stability and repayment history before granting the loan.
A consumer durable loan is an excellent way to purchase your desired household gadgets and electronics without exhausting your savings. With low interest rates, flexible EMIs, and minimal documentation, it is easy for consumers to access these loans. Before applying, compare the consumer loan interest rate offered by different lenders and choose the one that fits the best for you.
You can apply for a personal loan through Quid, which connects you with RBI-registered NBFCs to buy consumer durables. To apply, download our Personal Loan App or visit our website.
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