A Comprehensive Guide to Consumer Durable Loans: What You Need to Know

With the rise in demand for consumer durable goods, banks and other financial institutions have come up with new and innovative loans to help buyers make a purchase. Loan options are available for personal homes and commercial or business properties that can be used as showrooms or factories. If you are considering buying a car, computer, refrigerator, air conditioner, mobile phone, or other such product and need financing, this blog post will prove helpful. Here we’ll cover everything related to consumer durable loans: eligibility criteria, loan types, usual documentation process, rates, etc.

What is a Consumer Durable Loan?

A consumer durable loan is a type of credit against which you can borrow money to buy a product that lasts for at least three years. It is a form of unsecured credit, which means that your loan application will not be backed by any collateral, like a mortgage loan. The duration of a consumer durable loan can vary. You can take one to repay any amount of money, repayable over any period. The loan amount may or may not be the same as the cost of the product.

Eligibility for a Consumer Durable Loan

Consumer durable loans are available to borrowers regardless of their credit history. Some lenders are even willing to lend to those with bad credit history. You can avail yourself the consumer durable loan on instant loan apps such as PaySense if you meet the following eligibility criteria:

Age: Although there are no age restrictions on who can apply for a consumer durable loan, lenders usually prefer borrowers who fall in the age group of 21 to 60 years.

Credit: If you have a bad credit history, you can still apply for a consumer durables loan. To decide on your loan application, lenders will look at your income, not your past credit history.

Income: Your income will be the primary basis on which your loan application is approved. Lenders usually look at your past six months’ income and other financial records to determine whether you can repay the loan. To qualify for the loan, the individual’s monthly income must range from 18,000 - 20,000 INR or above. This varies depending on the city of residence.

Nationality: The borrower must be an Indian citizen.

Characteristics of a Consumer Durable Loan

Consumer durable loans are unsecured loans wherein you repay the money without collateral. There is no requirement for a fixed interest rate for such loans.

• High-cost credit: Consumer durable loans are high-cost credit, as they come with very high-interest rates. The interest rate is calculated based on your total income and other financial records.
• Quick approval: Most consumer durable loans get approved within 24 hours of approval. The approval time for instant loans can be as little as 10 minutes.
• Limited amount: The maximum amount you can borrow through a consumer durable loan usually ranges from Rs.5000 to Rs.5 lakhs.
• Short-term: Consumer durable loans are short-term loans, as they come with a repayment period of 36 months or less. 

Benefits of a Consumer Durable Loan

• Easy to apply: You need to log in to an online consumer durables loan portal such as PaySense with your personal details. You need not go to the bank or any other financial institution to apply for a consumer durable loan.
• Quick approval: You will get an approval decision in less than 60 seconds if you use an online loan portal.
• Multiple payments: You can make fixed monthly payments to repay the loan within a stipulated period.
• No collateral: You don’t have to pledge any collateral against the loan. 

How Can You Get A Consumer Durable Loan Through An Instant Loan App

If you want to get a consumer durable loan, you should first login to an online instant loan app such as PaySense and fill in your online loan application form. The lender will review your loan application, and money will be credited to your account within a few hours. Then, you can use the money to buy something consumer durable or buy something else entirely. For instance, if you want a new laptop, you can buy it on an installment plan and repay it in small amounts every month.

Conclusion

Consumer durable loans are unsecured loans wherein you repay the money without any collateral. Lenders usually prefer borrowers with a good credit history and high income. However, you can still apply for a consumer durable loan if you have a bad credit history. You can use an instant loan app such as PaySense to get a consumer durable loan and buy a product of your choice. You can repay the loan amount in monthly installments.