Consumer Durable Loan

We all need to regularly maintain and replace the items and appliances in our homes. But it can be quite expensive to do so, especially if you have a very tight monthly budget. However, if your refrigerator has broken down, one can’t wait for several months to save up and purchase a new one. It’s a great idea to take a consumer durable loan to help you finance your requirements, without breaking your monthly budget. Consumer durable loans are usually used for purchasing appliances. This can include items such as refrigerators, televisions, washing machines, cooking appliances, air conditioners, water purifiers, and even mobile phones and audio systems. You can get a wide range of items via a consumer durable loan, be it basic essentials or luxury goods.

Essentially, consumer durable loans are personal loans that are repaid via monthly instalments or EMIs over a period of time. The loan can vary from a few thousand rupees and go up to lakhs. The repayment tenure for consumer durable loans can vary between several months to about 5 years. The interest rate can range anywhere between 18-32% which is determined on your income, credit score, and financial stability.

Consumer Durable Loan Uses

1. Repair or upgrade your electronic gadgets: Household items such as furniture, appliances and electronic gadgets are bound to need maintenance or replacement. Offset the high costs of these items with a consumer durable loan that will allow you to repay in affordable monthly EMIs. 2. Home repairs and renovation: Houses need regular repair and maintenance work in order to withstand time. The rainy season particularly can wreak havoc and cause a number of issues with your home. Take a consumer durable loan to finance the cost of upkeep and prevent and damage to your home. 3. Vacation: Ever dreamt of going on an exotic vacation, or just taking a short trip? Consumer durable loans can help make that dream a reality- without breaking the bank! Take that much-needed vacation and cover the costs with your loan. 4. Upgrade your lifestyle: We all want to maintain a comfortable standard of living and keep improving our lifestyle, and oftentimes our salary can feel restrictive. Big-ticket lifestyle purchases can be easily covered by consumer durable loans.

How to Apply for a Consumer Durable Loan In India

A consumer durable loan can be easily availed, as long as you meet the lender’s basic eligibility criteria and have the necessary KYC documents. Here are the steps: 1. Determine how much you need: Figure out the exact cost required for your requirement. As with any loan, you should only apply for the amount you really need. 2. Check eligibility criteria: Lenders have a set of eligibility criteria that will determine whether a borrower can apply for a loan or not. This includes parameters such as age, income, location, CIBIL score, and financial stability. Ensure you meet the full basic criteria of the lender, and only apply to 2 or 3 lenders in a month’s time. 3. Fill out the form: Once you’ve selected your lenders, fill out the application form very carefully. Even small mistakes or inconsistencies in the form can lead to your loan application getting rejected immediately. Also, ensure that you have all the necessary documents in the right places of the application. 4. Make your payments on time: Always make your EMI payments on time! If you make a late payment, it negatively affects your credit score. Therefore, always ensure that you make your payments on time so that your credit score does not get affected.

Conclusion

Consumer durable loans are usually availed for purchasing products, although they can also be availed for a variety of other reasons.