All You Need to Know About Consumer Durable Loans - Make Money Online

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All You Need to Know About Consumer Durable Loans


Everyone wishes to have a luxurious lifestyle. However, upgrading the lifestyle requires an adequate amount of funds. This is where consumer durable loans can be of great help. Consumer durable loans are small loans that are useful for purchasing home appliances such as AC, TV, computer, smartphones, refrigerator, etc. These loans are offered on the products which come with a warranty period. The loan amount is disbursed directly to the seller’s account and is repaid through easy instalments by the borrower. Below are some of the characteristics of consumer durable loans.


Interest rates

Loans with lower interest rate can help you save a large amount of money in the long run. The interest rate on a consumer durable loan is comparatively lower than that of a personal loan. It also varies from one financial institution to another. With leading NBFCs, it is possible to avail consumer durable loans at the most competitive interest rates.

Down-Payment

Most of the financial institutions finance up to 80%- 95% of the product price. The remaining amount is to be paid by you in the form of down payment while making the purchase.Leading financial institutions provide consumer durable loans with nominal down payment and processing fee.

Tenure

Consumer durable loans are short term loans. Their tenure ranges from 3 months to 24 months.  A shorter loan tenure will lead to higher EMI amount, whereas a longer tenure will attract a small amount of interest rate.

Documentation

Minimal documentation is another major advantage of consumer durable loans.Some of the basic documents required are ID proof, address proof and proof of income.

The popularity of consumer durable loans has increased significantly in recent years. The growing middle-class families play a vital role in raising the demand for consumer durable loans. In order to make their life more comfortable, people purchase more and more durable goods such as kitchen appliances, electronic items, furniture, etc. Instead of liquidating their saving to make these purchases, people can consider resorting to consumer durable loans with a low-interest rate. This will allow them to keep their savings intact for unexpected emergencies.

Due to the easeof availability of consumer durable loans, the lower and middle-income group prefer opting for a consumer durable loan when its cost of borrowing suits their requirement.

To sum it up, consumer durable loans are an easy and smart way to upgrade your lifestyle without exhausting your savings and affecting your monthly budget.  Benefits such as minimal documentation, quick approval, instant disbursal, and low-interest rates give consumer durable loans an edge over a personal loan or credit card for purchasing durable home appliances and furniture.

Now that you are well aware of the benefits of a consumer durable loan, ensure that you make optimum use of it to finance your purchases. Lastly, do not forget to read the terms and conditions of the loan agreement before signing it. This will help you avoid any inconvenience in the later stage.
All You Need to Know About Consumer Durable Loans All You Need to Know About Consumer Durable Loans Reviewed by RAWAT on 9:47 PM Rating: 5