A Consumer Durable Loan is a type of personal loan which is usually obtained for purchasing household appliances and electronic gadgets, such as laptops, smartphones, televisions, home theatres, cameras, PlayStations, washing machines, furniture, modular kitchens, and so on. Under this loan, the borrower can avail of a loan amount anywhere ranging from Rs. 3,000 to Rs. 15 Lakhs at an interest rate starting from 0% or No Cost EMI. These loans can be repaid within a few days to up to 60 months.
Consumer durable loan interest rates may vary from one lender to another. Some of the key factors that may affect the interest rate on consumer durable finance include the cost of the item the applicant is purchasing, the applicant’s credit score, employment type, tenure of repayment, etc.
Consumer Durable Loan Features
Following are some of the key features of consumer durable loans:
You can apply for a Consumer Loan with any of the leading banks/ NBFCs mentioned below with their key features:
Most lenders offer consumer durable loans to salaried as well self-employed individuals. The eligibility criteria for these loans may vary depending on the applicant’s profile, credit history, loan amount, and lender’s policy. Following are the basic eligibility criteria required by top lenders for consumer durable loans in India:
Note: The eligibility criteria mentioned above are generic, and the actual eligibility norms may vary from lender to lender.
Following are the common documents required for availing of a consumer durable loan at top lenders:
A consumer durable loan is a type of credit which can be used to buy consumer durable products, such as electronic gadgets, household appliances, etc. Instalment Loan is the most common type of consumer durable loan. It is different from an EMI conversion using a credit card/ debit card because you don’t have to use any card to complete your purchase and/or set up an instalment-based payment plan.
Instalment Loans are the most common type of consumer durable loans, which are usually are repaid in weekly, fortnightly, monthly or bi-monthly instalments according to a preset timetable. These loans may come with fixed or variable interest rates. They may or may not require security/ collateral for sanction.
Following are some common types of Instalment Loans based on their key features:
Apart from the interest rate, you might have to pay the following additional fees and charges on a consumer durable loan:
Some lenders offer consumer durable loans at a zero interest rate; however, there are some that do charge interest on these loans. These interest rates can get affected by various factors, as mentioned below:
A credit score of 750 or above can get you a consumer durable loan easily at an attractive interest rate as it indicates your reliable creditworthiness.
Yes. Personal loans come with the flexibility of end-usage and can be used to meet various personal financial expenses such as payment of medical bills, home renovation, travel, debt consolidation, etc. However, consumer durable loans can be availed for purchasing consumer durable goods only, such as electronic gadgets, household appliances, common household goods, etc. Consumer durable loans are generally cheaper than personal loans as they often come at a low or 0% interest rate along with a nominal processing fee.
Yes, most lenders offer borrowers the option to foreclose/ prepay their consumer durable loan with a foreclosure charge between 0% to 6% of the outstanding loan principal amount plus applicable taxes.
Many loan providers offer up to 100% finance of the product’s market price on a consumer loan. However, in some cases, the lender may offer only 80% to 90% finance of the product price and the remaining 10% to 20% has to be paid by the customer by the way of a down payment at the time of the product purchase.
HDFC Bank, SBI, Bajaj Finserv, IDFC First, Tata Capital, IndusInd Bank, and Fullerton India are some of the best banks in India to get a consumer durable loan.