A Simple Guide to Consumer Durable Loans

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What Is a Consumer Durable Loan?

Consumer durable loans are the most general criterion of personal loans available for the purchase of home products or items such as laptop computers and phones. When compared to other loan products on the market, these loans often have a short payback term and are quite inexpensive. Most EMIs on consumer durable loans are free, which makes them a very appealing choice.

Advantages Consumer Durable Loan

Attractive Interest Rate

The majority of financial institutions provide zero-interest consumer durable loans. It signifies that the monthly payment does not contain any interest. There is, however, a catch. The Reserve Bank of India forbids financial institutions from providing interest-free EMIs. So, what does all of this mean? On consumer durable loans, most financial institutions levy a processing fee and other documentation costs, which are either included in the EMI or must be paid at the time of the down payment.

Rapid Disbursement

While other loans may take a day to a week or even months to distribute cash, consumer durable loans are granted in minutes. The requirement for fewer documents is the reason for the speedy approval and disbursement of cash, since the loan amount in consumer durable loans is very modest.

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A tenure that is flexible

Consumer durable loans have maturities ranging from three to sixty months. However, depending on the lender, the duration may change. The term “flexibility” enables you to choose the loan amount whose EMI best matches your budget.

Create A Credit History

If you’ve never taken out a loan before, your credit report will display a “NA,” which stands for “not applicable.” In this circumstance, if you seek a significant quantity of money, the lender may decline your request. The most effective approach, to begin with, is to get a consumer durable loan, repay it on time, and develop a great credit score and history.

When Should You Apply for A Consumer Durable Loan?

A type of multi-purpose loan is a consumer durable loan. You may use them to purchase any home electrical equipment, smartphone, or high-priced item. The following is a summary of the most typical scenarios in which individuals apply for this loan.

Shifting To a New Home

When you purchase and move into a new house, you will need to outfit it with different appliances, such as a modular kitchen, a washing machine, air conditioners, and other important goods. However, since buying a new house is a costly endeavor, paying for furniture right away may put a strain on your budget. Consumer durable loans come in handy in this situation.

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Replacing Old Appliances

Every electrical product has an expiration date. A smartphone, for example, may live up to 4-5 years, but a washing machine can last up to 10 years, and so on. If any of your high-end appliances unexpectedly quit functioning, you may need this loan to cover such unexpected costs.

Gifting For Various Occasions

If you want to give a home appliance to a friend or close family member during their wedding, anniversary, birthday, or festival, consider consumer durable loans rather than paying the whole cost upfront. This loan might be used to purchase a watch, laptop, mobile phone, or any other high-end item.

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