Air conditioners are no longer seen as an expensive luxury. Unlike 15 or 20 years ago, we have become accustomed to working in air conditioned offices, shopping in air conditioned malls, and watching movies in air conditioned multiplexes. It is only natural to want the same comfort at home as well. The problem is not everyone has ready extra cash to fund these kinds of more expensive household products and need to look for an ‘air conditioner loan’! If you want to buy an AC, you could apply to a bank or NBFC (Non-Banking Finance Companies) for a Consumer Durable Loan to cover the purchase. These loans are a quick and convenient finance option for buying household items.

What is the typical amount, tenure and interest rate to buy an AC?

Naturally, the amount, tenure and interest rate differ according to each lender. In general, the amount for a consumer durable loan can range from a few thousands to a few lakhs. The actual loan amount is dependent on the cost of the item, so the amount for an ‘air conditioner loan’ would be a few thousands. The tenure could range from 6 months to 24 months.


Each lender has its own criteria, but in general, you need to be between 21-65 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 documentation required is fairly simple and could include ID proof, residence proof, income proof, PAN card and a photograph. Again, the documentation varies depending on the value of the loan amount.

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 manufacture or retailer.