Want To Live Life In Luxury? A Consumer Durable Loan May Be Explored
Are you waiting to upgrade your television to watch upcoming IPL action in HD? Or looking to buy a new side-by-side refrigerator for your kitchen. Or maybe planning to give a complete overhaul to your kitchen cabinet and transform it into a modular one? All of these are normal things that we plan in our everyday life. No matter what device you are planning to buy, a consumer durable loan is an ideal fit for your dreams.
What is a consumer durable loan?
Consumer durable loans are the ones offered by financial institutions to customers for purchasing a household or personal goods. The consumer loans are unsecured and paid back in flexible instalments without financially burdening a borrower. The consumer loans come under the category of personal loan segment and are used to buy goods such as:
Television, Home theatre system
Washing machine, etc.
What are the benefits of consumer durable loans?
All financial institutions offer consumer durable loans to eligible applicants. Some of the features of the loan are:
The loans are provided with minimal documentation and without collateral.
The loan process is speedy and straightforward.
Line of credit facility available that enables a customer to pay interest only on the amount utilized and not the entire loan amount sanctioned. It reduces the interest component.
The loan amount varies and depends upon the customer ranging from Rs.5000 to Rs.5 lakh.
The loan amount can be repaid in easy EMIs in tenure ranging between 2 months to 36 months.
The salaried class as well the self-employed people can avail the loan.
What is the eligibility criteria to get a consumer durable loan?
The applicant must be an Indian resident.
The minimum age should be 21 years and the maximum of 65 years.
The income of salaried people – Rs.12000/month and Rs.15000/month for self-employed.
What are the documents required to get a consumer loan?
Identity proof – Passport, Voter ID, Aadhar card, PAN card
Address proof – Ration card, Voter ID, Utility bills(water, telephone, electricity, Gas bills), Aadhar card
Photos – two passport size recent photos of the applicant
Bank statements of the last three months(income proof)
How much loan amount does consumer loan applicant get?
The loan amount sanctioned by financial institutions varies. It can be between Rs.3000 to Rs.5 lakh depending upon the eligibility, age, income stability, etc. of the applicant. The interest rates charged by different lenders also differs and largely depends upon the customer’s financial profile.
Interest rate chargedVary between 13% to 24% per annumAge limitBetween 21 years to 65 yearsMinimum incomeMin. Rs 12000 for salaried class Rs. 15000 for othersLoan amountBetween Rs.5000 to Rs.5 lakh
How to calculate EMIs for consumer durable loans?
An applicant can calculate the EMI amount to be paid every month. To calculate EMI, things required are:
Loan amount sanctioned
Tenure of the loan repayment
The interest rate applicable on the loan
How to apply for a consumer durable loan?
There are three simple steps to get a personal loan; these are:
Step 1 – Select the loan plan and the tenure of payment. Fill the application form along with all the required personal details.
Step 2 – Submit all the documents for verification(KYC).
Step 3 – Once the verification of the documents is complete, the applicant’s bank account is credited with the loan amount.
Personal loans are an easy way to purchase goods for your home. You don’t have to wait for years to buy your new tv or refrigerator; all you need to do is apply for a consumer durable loan. The affordable instalments ensure you pay the loan from your monthly salary and without digging into your savings.