When you move into a new house along with your family members, you may need to purchase appliances, electronics and other consumer durables.  When ready cash is insufficient to meet such purchases, a loan is ultimately the best solution. Targeting such customers, public and private lenders have come up with consumer durable loan that lets you buy the desired products and repay the amount in easy monthly instalments at a stipulated tenure that is convenient for you.


Applying for A Consumer Durable Loan

Consumer durable loan is generally an unsecured loan that is available with minimal documentation. You can get a consumer loan as low as Rs. 5000 to maximum of Rs. 5 Lakhs depending on the necessity and eligibility. Following are the ways to apply for a consumer durable loan.

Applying Online: It’s quite easy to apply online and get quickly approved for a consumer durable loan. You need to visit the official website of the lender from whom you wish to get the loan. You may have to fill out an application form which may include your mobile number, personal details, income details, etc. After completing the application form, you can submit it to see if you are approved for the loan. If you are approved for the loan amount, you can just walk into any nearby dealers or retailers from whom you wish to purchase the product. By doing the simple documentation work with the loan approval ID, you can purchase the desired household durable.

The lender approves your loan application based on your eligibility. You must have fulfilled the eligibility criteria prescribed by them. If you do not meet the criteria, you are unlikely to get approved for consumer durable loan. For repayment, you can choose the convenient tenure. Generally, the maximum repayment period for a consumer durable loan is up to 36 months.

Apart from applying at lender’s website, you can also visit the e-commerce website where you can purchase a wide range of home appliances like air conditioner, washing machine, refrigerator, television, water heater, etc. On checking out the product, you will be shown an option of lenders who have tie-up with the e-commerce company. Some of the lenders offer ‘No Cost EMI’ option which is an attractive feature for many prospective buyers.

At Partnered Outlets: When you visit a dealership showroom for the purchase of a household product, you can apply for the loan at the outlet with the help of the executive then and there. Most of the lenders have partnered with these popular dealership showrooms who sell all such consumer durables and accessories. If you wish to get a loan, you will be asked to fill out an application form with all your KYC and income details. The representative of the lender will help you with the process and check whether you are eligible for the loan. Once the loan is approved, the loan is paid to the dealer and you can repay it in a tenure that is favourable to you.

EMI Cards: Popular Non-Banking Financial Companies (NBFCs) such as Tata Capital, Bajaj Finserv, etc., have introduced EMI cards that come with a pre-approved loan amount. You can acquire the EMI card by filling out an application form with your KYC and income details. With the card, it comes much easier to buy your desired product and payback in EMI. You can avert the documentation procedure by having the EMI Card. Bajaj Finserv provides pre-approved loan amount up to Rs. 4 Lakhs on their EMI Network Card. The maximum amount is fixed based on your eligibility.

Additional ReadingWhat is a way to increase my Bajaj Finserv EMI card’s limit?

Consumer Durable Loan – Eligibility Criteria

Just like a personal loan, a consumer durable loan too has similar eligibility criteria. Following are some of the common criteria that are required to get approved for this type of loan.

Age: You must be minimum of 21 to maximum of 65 years of age. However, the age limit may differ from lender to lender.

Income: The applicant must have a good income as stipulated by the lender. This is the primary criterion to become eligible for the loan. Non-earning individuals may not get approved for a consumer durable loan.

Relationship with the lender: As this may not have a major bearing on the eligibility, existing customers can avail offers and discounts on certain purchases. Moreover, age limit may be relaxed for such customers.

Documents Required for Consumer Durable Loans

Most lenders prefer Aadhaar Card for verification, and if your Aadhaar number is linked to your mobile number, it becomes all the more easy as no documentation is required. However, this is applicable only with certain lenders. If you have not linked the Aadhaar number, you may have to submit the following documents.

  • Passport size photographs

  • KYC Documents

  • Cancelled Cheque

  • ECS mandate duly signed

No Cost EMI

This is an attractive option that has enticed so many individuals to buy their favourite home appliances and accessories. Leading Non-Banking Financial Companies have come up with this option to enable the customers to purchase any product required for their household chores.

When you buy a high definition LED television for Rs. 80,000, you can repay the amount in 10 instalments with Rs. 8000 per month. You don’t have to pay any interest for the loan.

Things to Watch Out While Buying a Consumer Durable with No Cost EMI

One may wonder how the loan provider may benefit from the No Cost EMI option. There are some of the terms involved while you opt for this. Following are some of the general terms and conditions that are applicable on No Cost EMI option.

  • Though you may not pay the interest rate on the loan amount, there may be 18% GST applicable on the item you purchased. This can incur additional expenses to you. No Cost EMI may not be applicable to the tax levied on the purchase. However, the charges are waived off if you make the payments through certain channels such as e-wallets, payment apps, etc.

  • To avail the No Cost EMI option, you can choose the tenure only up to a certain limit. For more than a specific repayment period, the option may not be available.

  • You must make the purchase for a certain minimum amount. If you buy a product that is below the minimum required amount, the No Cost EMI option may not be applicable.

  • Some lenders allow No Cost EMI option only on purchase of products of certain brands.

End Note

A consumer durable loan is a huge help when you are unable to make the entire payment upfront. It can fulfil the immediate need for the household which otherwise would not have been possible. Moreover, with the No Cost EMI option, a consumer durable loan seems a better option than a personal loan.