Everyone’s lifestyle could do with an upgrade and a consumer durable loan allows you to do that! In a nutshell, it enables you to buy household products that make your life easier and your leisure more enjoyable. You might want a washing machine to save you the chore of washing your clothes. Or you might think that the best way to de-stress from a hard day’s work is to see the IPL matches on a large LED screen at home in the comfort of air conditioned room. The problem is not everyone has ready extra cash to pay for these household items and a consumer durable loan helps finance these purchases.
What are the products covered by a consumer durable loan?
The loan covers a whole range of products ranging from household necessities like a washing machine to luxury gadgets like a high-end smartphone. The products covered by a consumer durable loan could include the following:
1. Washing machine
3. Microwave oven
4. Cooking range
5. Air conditioner
6. Tablet, laptop, desktop (might be subject to a minimum value)
7. Smartphone (might be subject to a minimum value)
9. Invertor and generator
10. Water purifier
12. Music system
What is the typical amount, tenure and interest rate on a consumer durable loan?
Naturally, the amount and tenure differs according to each lender and the product that you wish to purchase. The durable loan amount could range from a few thousands to a few lakhs, while the tenure could range from 8 months to 3 years. 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 or, in some cases, even apply at specific stores that have tie-ups with specific lenders.
The interest rates 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.