Yes, it is possible to get a loan to buy an air conditioner. With the mercury rising every day, summer is the time most people long for an air conditioning unit at home to make life a little more bearable. After a hard day’s work at the office, followed by a stressful commute home, having an air conditioner at home can seem like a necessity rather than a luxury!
However, not everyone has ready cash to spare to buy an air conditioner – however urgent the requirement. To enable you to make such household purchases, banks and NBFCs ( Non-Banking Financial Companies) offer consumer durable loans. These loans are a quick - sometimes taking only minutes with certain lenders to be approved in-store - and convenient option for financing your air conditioning unit.
While you are relaxing in the comfort of your newly air conditioned room, you might think that life would be even better if you could also install a big LED screen to watch cricket or movies. You could take similar loans to purchase other such household products as well.
What is the typical amount, tenure and interest rate to buy an air conditioner on 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 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 on 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.