A Consumer Durable Loan is a loan facility that allows people to purchase regular day to day usage items and equipment with the help of a borrowed loan. These goods can be air conditioners, laptops, smartphones, television, and microwave, among others. Thus, consumer durable loans can add luxury in ordinary life by bringing in more comfort and improved standards. Some of the benefits of consumer durable loans are listed below:
Affordable Interest rates: The best part about a consumer durable loan is that it can be availed at affordable interest rates. Consumer durable loans are available at lower rates in comparison to personal loan rates. Further, the loan requires no security. Some lenders even provide consumer durable loans at 0% interest rates. Also, no hidden charges are involved in these loans, and even the processing fee is very low.
Convenient loan tenure: Consumer durable loans are available for convenient loan tenures that may range between 3-36 months. The loan tenure may differ amongst various consumer durable loan lenders. Though it must always be kept in mind, that a longer loan tenure will always attract a higher EMI. In that case, EMIs can be planned well using online EMI calculators. Also, this loan provides the borrower with the facility to choose the repayment schedule as per his or her convenience.
Quick loan approval: Consumer durable loan involves quick loan approval without any hassle and unrequired formalities. This is because consumer durable loans can be applied through both online and offline mediums. Many banks even provide pre-approved loan offers to their customers. Thus, consumer durable loans are quickly approved.
Limited documentation: A consumer durable loan is beneficial because it involves limited documentation. To avail this loan, salaried people need to show limited documents, such as identity and address proofs that include Aadhar card, PAN card, driving license, Voter ID card and Passport. They also require income proofs, such as salary slips and bank statements. Similar to salaried people, self-employed people also require address and identity proofs though they are also required to submit last two years income tax returns.
No prepayment or foreclosure changes: Everybody wishes to get rid of the loan responsibility as soon as possible. Though, this requires one to have adequate funds at hand. Other loans like home and personal loans charge foreclosure fees from the borrower because lenders lose out on the regular source of earning from loan EMIs. But consumer durable loans, on the other hand, involve no foreclosure or prepayment charges.
Loan amount: A consumer durable loan grants a financing up to 80%-90%. This means that a borrower needs to pay a very less amount of funds from his or her pocket. A consumer durable loan thus involves minimum down payments of up to only 10%-20%. The best part is that many lenders even provide 100% funding to the borrower’s choice of product. These loans are available for up to Rs Rs 5 lakhs to even 15 lakhs in some cases. The financing may vary across lenders.
On a concluding note, it must be understood that a consumer durable loan is a great financing option that adds more comfort to a normal life. It allows one to experience luxury even when they run short out of budget. A consumer durable loan is beneficial in many aspects. However, to choose the best loan deal, one must analyze the benefits that suit him or her best. To make the best out of any deal, one must always be aware of both pros and cons regarding any credit facility.
