Consumer Durable Loans

With the needs of any family expanding on a rapid basis, the need to take a loan to meet the impending needs of the family does cross a person’s mind. However, increased interest rates and multiple paperwork does keep them away from the hassles of applying for a loan. However, the trend is set to change as flex consumer durable loans are now easily available. So, what exactly are these consumer durable loans?

What are consumer durable loans?

Consumer durable loans are a category of loan which can be used to purchase giant Television or a large home theatre system that you would have aspired to buy but could not do so. Financing under consumer durable loans is also available for a range of other products including refrigerators, washing machines, air conditioners, laptops and furniture. Moreover, these loans can be repaid in easy monthly instalments which makes the process all the more easy to comprehend.

Many financial service providers offer consumer durable loans and these are offered on 0% interest and low down payments. Moreover, the customer also gets easy repayment options. Minimal documentation is required in case of these loans. Instant approval and no security deposits are the other additives of these consumer durable loans. A person should be minimum 18 years of age for being eligible for such loans and they should be Indian citizens. Standard KYC documents like PAN Card, Aadhar Card, Driving License, Voter card or any other document which establishes the identity of the loan taker are the only documents which are required for processing of such consumer durable loans.

Top Consumer Durable Loans in India

There are numerous consumer durable loan providers in India which can be ranked among the best in the country. To name a few zestmoney, home credit and bajajfinserv among others can be considered.

Zestmoney

Zestmoney is also one of the recommended consumer durable loan providers in the country. Quick digital processing where no physical documentation is required is one of the key additives of Zestmoney. The company has quick turnaround time and most of the loans from Zestmoney stand approved in a few hours only. People who do not have credit score can also think of getting a consumer durable loan from Zestmoney as they have the best approval rates in the business. Seamless EMI payment is another advantage of getting a consumer durable loan from Zestmoney as they work out a mutually agreeable payment schedule which is auto-debited from the account.

Moreover, Zestmoney does not charge any pre-closure charges and the customers can avail of exciting offers when they opt for pre-closure of their loans by paying the pending amount lump sum.

Home Credit

Home credit is another leading consumer durable loan provider in India. The company makes it extremely easy for a person to get consumer durable products like mobile phones, laptops, electronics and two-wheelers. The company also allows immediate disbursement of the loan amount. Low-interest rates and minimal documentation are some of the advantages of seeking consumer durable loan from Home credit.

Bajaj Finserv Durable Finance

This is considered to be one of the best consumer durable loan providers in the country. Bajaj Finserv offers up to five lakh in loan for purchasing consumer durable products. The user also has the privilege of paying back only the principal amount.      No interest is chargeable in such cases. The loan borrower only has to pay the basic processing fee in such cases and the total cost of the product purchased either in a down payment or in small instalments. In this consumer durable loan, there are no hidden charges which make it unique in the true sense. There is also no fee on foreclosure of the loan. This loan also comes with minimum documentation and pre-approved authorization.

Interest rates in Consumer Durable Loans

The interest rates that are chargeable on consumer durable loans varies from company to company. Generally, these could range from 12 % to 22 % depending upon the amount of loan that has been taken and the duration in which it is to be paid back. At times, some of the loan lenders also charge 0% interest in cases when some kind of promotional offer is on the avail. Most of the consumer durable loan providers however, charge a processing fee which varies from 1-3% of the loan amount.

Difference between consumer durable loan and personal loan

There is a thin line of demarcation between consumer durable loan and personal loan. Consumer durable loans are generally on avail for people who are looking for purchasing consumer durable items like big television, automatic washing machines, refrigerators and two-wheelers in some cases. The personal loans, on the other hand, can be used and availed for multiple reasons like funding the education of children, repayment of old loans or for investment purposes in property etc. Consumer durable loans are specifically available for purchasing of consumer items which people find it difficult to own in one go and which are required for making the daily life function in a smoother manner.

Pros and Cons of Consumer Durable Loans

Like other loans, there are pros and cons of availing the consumer durable loans too.

Pros

1. Apply for as many

The customer can apply for as many consumer durable loans as they require. In cases when a customer wants to purchase a refrigerator and washing machine in one go, they can also apply for two consumer durable loans which will not be the case in the context of personal loans.

2. Easy to avail

With minimum documentation required, these loans can be availed even at the click of a button, something which is not possible in case of traditional loans.

Cons

1. Expensive to avail

The interest rates are on the higher side in consumer durable loans. At times, the borrower ends up paying interest up to 12-22% too.

2. Easy to get tricked

As this consumer durable loans are available at the click of a button, at times people end up availing unnecessary loans which they find cumbersome to pay at a later date.

All said and done, consumer durable loans have made the life of customers easy and they can think of owning consumer goods which otherwise were out of their budget.

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