What is a Consumer Durable Loan? How Does It Work?

Apr 26, 2021 12 min read

What is a Consumer Durable Loan? How Does It Work?

We all love to upgrade our living style from time to time. Be it our television, washing machine, refrigerator, laptop or any other household thing. It is not necessary that we always have liquid cash as much as we require. Here comes Consumer Durable Loan for our rescue.

Consumer Durable Loan

The loan that will help you to buy consumer durables like air conditioners, home theatres, washing machines, televisions, laptops, and other consumer goods is called the Consumer Durable Loan.

With the help of the Consumer Durable Loan, you can buy your favorite gadget or household item without waiting for months and years.

No need to wait and save that big amount to buy anything big. You want to transform your kitchen into a Modular Kitchen, just apply for a Consumer Durable Loan now and repay it in easy installments in the upcoming months.

Interest Rate on Consumer Durable Loan

The interest rate on the Consumer Durable Loan can vary from the lender to lender. Some lenders offer the loan at 0% interest during the festive season or any other promotional period. Otherwise the interest rate on the Consumer Durable Loan can be from 12 to 22% interest.

Other than this, a nominal processing fee is also charged which ranges from 1 to 3% of the loan amount. No other additional fees are involved in this.

Tenure of Consumer Durable Loan

Tenure of repayment of  Consumer Durable Loan differs from lender to lender. Tenure can be flexible. It can be from six months to thirty six months.

Consumer Durable Loan Amount You Can Get

Most of the lenders provide 80% to 90% of the actual price of the product as the Consumer Durable Loan, which means that you have to pay 10% to 20% of the actual price as the down payment.

Some lenders also provide 100% loan, which means you don’t have to pay the down payment then.

There is a minimum actual value of the product on which Consumer Durable Loan is available.

Products Covered under Consumer Durable Loan

There are a wide range of products like household appliances, gadgets, etc. for which you can get  Consumer Durable Loan. you can get the  Consumer Durable Loan on the following products:

❖     Air Conditioner

❖     Refrigerator

❖     Television

❖     Microwave ovens

❖     Washing Machine

❖     Inverter

❖     Generator

❖     Cooking Range

❖     Home Theatre

❖     Laptop

❖     Smartphone

❖     Dishwasher and many more

Eligibility Requirements for Consumer Durable Loan

Consumer Durable Loans are available for salaried as well as self employed individuals or Businessmen.

Consumer Durable Loans for Self- Employed Individuals

❖    Minimum age must be 21 years.

❖    Aadhar Card, PAN Card etc. as KYC Documents

❖    Bank statements of the last 6 months.

Consumer Durable Loans for Salaried Individuals

❖       Minimum age must be 23 years.

❖       Aadhar Card, PAN Card etc. as KYC Documents

❖       Bank statements of the last 12 months.

❖       Income Tax Return of the last 3 years.

Documents Required for Consumer Durable Loan

Minimal Documentation is required for the Consumer Durable Loan in comparison to the other loans. Following is the list of documents required for the approval of the Consumer Durable Loan:

❖    A copy of Aadhar Card/ Passport/ PAN Card/ Driving License/ Voter ID Card

❖    A copy of Ration Card/ Electricity Bill/ Telephone Bill/ Rent Agreement

❖    Income Proof:

➢    For Salaried Individuals: Bank account statement for the last 6 months, Salary Slips, Form 16

➢    For Self-Employed Individuals: Bank account statement for the last 6 months, Profit/ Loss statement of the business, Income Tax Returns for the last 2 years.

Can Consumer Durable Loan be Foreclosed?

The Consumer Durable Loan can be foreclosed. Most of the lenders do not levy the foreclosure charges. Even if they levy the charges, it may vary from lender to lender. It can be between 2% to 4% of the outstanding Principal. It is advisable to be in touch with your lender to know the procedure of the foreclosure.

How to Apply for a Consumer Durable Loan?

The Consumer Durable Loan falls in the category of the unsecured loans, which means you don’t need any collateral or security to avail this loan. So, your annual income and the credit history is evaluated by the lender. So, it is advised that you must have a good credit score before you apply for the Consumer Durable Loan.

This is how you may apply for a Consumer Durable Loan at Zavron:

❖    Visit our website

❖    Click on the ‘Apply Loan’.

❖    Fill the loan application form available there.

❖    Submit the form after filling all the details.

❖    We will verify your form quickly and you will be informed about your eligibility.

❖    If eligible, submit the documents:

❖    Your documents will be verified and you will be informed about the loan amount you are eligible for.

❖    The loan amount will be disbursed to your account soon after the verification.

Quick Links:

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RBI License no.:- N-13.02268

CIN:- U67100MH2017PTC292183