Our homes are more than four walls and a roof above our head. It's where we relax, refresh and rejuvenate with our loved and dear ones. Did you know that you can now upgrade your home with the latest appliances without paying for it out of your pocket?

Whether you're looking to purchase an HD-television to watch your favourite movies and sporting matches, a split air-conditioner to beat the summer heat, or a stylish three-door refrigerator for the kitchen – a consumer durable loan can help you purchase the desired appliance, without having to pay for it upfront. 

Here, in this guide, we give you all that you need to know about consumer durable loans – eligibility, documentation, loan amount, interest rates and more. Let’s get started. 

What is a consumer durable loan? 

Consumer durable loans help you buy big and pay small. You can complete purchases today, that you have been putting off for tomorrow. 

As the name implies, it’s a loan that you take to finance the purchase of consumer durables like household appliances, personal devices and other common household goods. Generally, a consumer durable loan is offered for the purchase of air-conditioners, televisions, home theatre systems, washing machines, refrigerators, ovens, modular kitchens, laptops, cameras, mobile phones, and other commonly used appliances and gadgets. 

With a consumer durable loan, the borrower can repay the cost of purchase of the appliance over a period ranging from six months to twenty-four months. Instead of waiting for months (or even years) to save for your favourite gadget/appliance, you can make your purchases today, and repay it in the form of convenient EMIs over the upcoming months. 

Additional Reading: Zero Percent Interest Consumer Durables Loan

What is the interest rate on a consumer durable loan? 

The interest rate charged on a consumer durable loan ranges from 12 to 22% and varies from one lender to another. Some lenders even offer consumer durable loans at 0% interest, during special promotional periods – like during the festival season and so on.

Besides the interest rate, consumer durable loans charge a nominal processing fee ranging from 1 – 3% of the loan amount. Besides the interest rate and processing fee, there are no additional fees involved. 

What is the tenure for a consumer durable loan? 

Consumer durable loans have flexible tenures that range from six to thirty-six months. However, note that the actual tenure varies from one lender to another. 

How much loan amount can I get? 

The loan amount sanctioned varies from one lender to another. Generally, most lenders offer consumer durable loans starting from Rs. 25,000 to Rs. 15 lakhs. Some lenders require you to make a down-payment of 10 – 20% of the product price, while the loan covers the rest of the cost. On the other hand, other lenders offer loans up to 100% of the product price.

Note that most lenders have a minimum product value. Consumer durable loans are available only for purchases that exceed this minimum product value. 

What are the products covered under a consumer durable loan? 

Consumer durable loans cover a wide range of household appliances and personal gadgets, including:

  • Television

  • Washing machine

  • Air-conditioner

  • Food processor/microwave oven/mixie, grinder

  • Cooking range

  • Refrigerator 

  • Inverter/UPS/Generator 

  • Home theatre/music system 

  • Dishwasher

  • Water purifier 

  • Tablet/desktop/laptop

  • Smartphone 

What are the eligibility requirements for consumer durable loans? 

For Salaried Individuals

To be eligible for a consumer durable loan, salaried individuals must meet these requirements:

  • Minimum age: 21 years

  • Maximum age: 60 years

  • Work experience: At least two years

  • Monthly income: Rs. 15,000 or more

For businessmen/self-employed professionals

To be eligible for a consumer durable loan, self-employed professionals and businessmen must meet these requirements:

  • Minimum age: 21 years

  • Maximum age: 65 years

  • Work experience: At least two years

  • Annual income: Rs. 1.5 lakhs or more

*Note that the eligibility requirements are likely to vary from one lender to another. So, make sure to contact your preferred lender for the latest eligibility conditions. 

What are the documents required for consumer durable loans? 

Compared with other loans, consumer loans require minimal documentation. Here is the general list of documents that you have to provide while applying for consumer durable loans:

  • Photo identity proof – A copy of passport/Aadhaar card/PAN card/Driving license/voter ID 

  • Address proof – A copy of the ration card/electricity bill/telephone bill/passport

  • Income proof 

    • For salaried individuals – A copy of the bank account statement for the last six months, salary slips, form 16

    • For self-employed – A copy of the bank account statement for the previous six months, profit/loss statements of the business, IT returns for the previous two years, etc.

*You may have to provide additional documents, as required by your lender. 

Can a borrower foreclose a consumer durable loan? 

Yes. Consumer loans can be pre-closed. However, the foreclosure charges and the period varies from one lender to another. Generally, most lenders do not levy any foreclosure penalties on consumer durable loans. Even if there is a foreclosure charge, it ranges around 2 to 4% of the outstanding principal. Make sure to get in touch with the lender to know the foreclosure charges and procedure. 

How to apply for a consumer durable loan? 

You can apply for a consumer durable loan using any one of the following two ways:

  • At Banks and NBFCs – Compare the various lenders and choose your preferred lender. Most lenders have an online loan application process. All you have to do is fill the loan application form, furnish the required documents, and the loan amount is disbursed directly to your account. Alternatively, you can also visit your nearest bank branch to complete the process.  

Some of the leading lenders include:

    • Bajaj Finserv Durable Finance

    • Capital First Consumer Durable Loan

    • Dena Consumer Durable Loan

    • HDFC Consumer Durable Loan

    • Tata Capital Consumer Durable Loans


  • At Appliance Showrooms – All major household appliance stores have tie-ups with leading banks and NBFCs. When you purchase an appliance, let the dealer know that you're looking for a consumer durable loan to cover the purchase cost. The dealer connects you with the lender, and the loan process can be completed within a few minutes.  

Factors to keep in mind, while applying for a Consumer Durable Loan

A consumer durable loan is an unsecured loan. The borrower doesn't have to submit any collateral/security to avail the loan. Hence, the loan poses a bit of risk to the lender. To compensate for the risk factor, lenders evaluate applicants based on their annual income and credit history. Hence, if you have a poor credit score, then it's highly recommended that you fix it before applying, to improve your chances of loan sanction.

Additionally, don’t forget to compare interest rates, processing charges, foreclosure penalties from different lenders. Evaluate these terms and conditions and select the lender who offers you the best deal. 


Upgrade your Home with an Affordable Consumer Durable Loan

With a consumer durable loan, you can purchase the latest appliances and gadgets today, and pay for it down the line. With tenures ranging from 6 to 36 months, you can repay the loan in pocket-friendly EMIs. 

Consumer durable loans are a smart way to complete purchases that would otherwise have been difficult to pay out of pocket. With minimal documentation, instant approval, and low-interest rates, consumer durable loans are the best way to upgrade your home and your lifestyle.