Starting a new life after marriage and need to furnish your home? Looking to upgrade your home with a new home theater system or own a latest gadget? A consumer durable loan makes it all possible for you. Get up to 100% funding of your favourite product and also pay back in low EMIs.
What is a Consumer Durable loan?
A consumer durable loan is a credit/finance option for the purchase of household appliances, electronic goods etc.
What do lenders look for before offering you a consumer durable loan?
Lenders check your annual income and credit history. Since consumer durable loans are unsecured loans, lenders specifically look at your repayment history and CIBIL Score. It is advisable to monitor your CIBIL Score on a regular basis and make sure there are no errors and the overall report looks favorable to the lender.
Check your CIBIL Score and Report for free by clicking here.
What are the typical interest rates and processing fees across categories?
Interest rates for a consumer durable loan varies from lender to lender and ranges from 12 to 22%. Some lenders also offer 0% interest based on their promotional offers. A nominal processing fee ranging from 1-3% of the loan amount is charged by most lenders.
Which are the documents required?
Documents that are required to seek a consumer durable loan vary from lender to lender. Generally the list of documents includes: Identity proof (PAN Card, Voter’s ID, Aadhar Card etc.), Address proof (Passport, Driver’s License, Electricity Bill etc.) and Income proof (latest salary slip).
Can I foreclose the loan, are there any foreclosure charges? What is the procedure?
Yes, you can always foreclose the loan at any point of time. However, the foreclosure time period varies for all lenders, starting after the first EMI to after 6 months from the date of loan disbursement. Most lenders do not levy foreclosure charges for consumer durable loans, but a few lenders charge between 2-4% of the outstanding principal amount. You can always get in touch with the lender to know the procedure they follow to foreclose.
What are the tenures for which I can avail the loan?
Consumer durable loans generally have flexible tenure ranging from 8 to 36 months.
What should you look out for?
It is always advisable to check out interest rates, processing fees and other applicable charges from various lenders, compare and then select the lender that offers you the best deal.
Click here to check your loan eligibility, based on which you can take an informed decision.