As the full heat of summer bears down, thoughts automatically move towards buying an air conditioner for the home! When temperatures rise steadily, having an AC unit at home can make life much more comfortable and make your leisure time at home more enjoyable.

The problem is that not everyone has extra cash ready to purchase an air conditioner. If this is the case, it is possible to apply for a consumer durable loan that will help you buy a new AC unit.

Is it possible to buy an air conditioner on loan without a credit card?

Yes, you can buy an air conditioner on EMI without a credit card. If you fulfill the eligibility criteria for a consumer durable loan, you can pay off your EMIs by cheque. You will need to offer a security check to your bank or NBFC when submitting your loan application.  Customers who have a credit card may be eligible for a higher loan limit.

What is the typical amount, tenure and interest rate on a consumer durable loan?

Naturally, the amount, tenure and interest rate differs according to each lender. The loan amount could cover the cost of your air conditioning unit and is dependent on your income. The loan tenure could range from 8 months to 24 months.

In general, you need to be between 21-60 years to apply for this type of loan and need to demonstrate proof of income. You can apply online at the lender’s website or, in some cases, even apply at specific stores that have tie-ups with specific lenders.

The interest rates on a consumer durable loan could range between 15-22% depending on whether you are a salaried employee or self–employed. Some lenders offer interest-free loans where the interest component is subvented and passed on to the finance company directly by the manufacturer or retailer.