Loans may be the best way of coming out of a financial pickle. Home loans and education loans can help with the purchase of your dream home and pursuing higher education, respectively. However, a new form of loan has become popular in the last few years, which is known as consumer durable loan. These loans are taken in order to buy household products and consumer items which can help improve the quality of life.
Here is a look at all you need to know about a consumer durable loan and what you can use it for.
1. What can you take the loan for?
The loan is mainly taken to finance electronics used in most households. For instance, the loan money can be used to purchase a refrigerator, washing machine, air conditioner, microwave oven, laptop, desktop, smartphone, TV and a cooking range. In case of desktops and laptops, the lender may set a limit for the amount of money sanctioned.
2. What is the maximum sum that you can borrow?
There is no set limit for the amount of money that you can borrow. Usually, a consumer durable loan may be anywhere between a few thousands and Lakhs, depending on the product that you are looking to purchase. Before taking the loan, you would need to disclose the reason for the loan to the money lender.
3. Tenure for repayment of the loan
For a consumer loan service, there can be a varied tenure for repayment of the borrowed money along with the interest on the sum. Usually, the tenure may range from anywhere between 8 months and 3 years. The time allowed for the repayment varies from one lender to the next. It may also depend on the amount of money borrowed.
4. Interest charged for the loan
The interest rate charged on a consumer loan service also varies from one lender to the next. However, in India, it is generally around 15 to 22 percent. The rate depends on whether you are a salaried individual or a self-employed person. The rate is always higher for self-employed people, when compared to salaried individuals.
5. Eligibility criteria for the loan
Consumer durable loan is only available to people aged between 21 and 60. Apart from a valid identity proof, loan applicants will also need to provide a proof of income, so that the lender can ensure that he/she is capable of paying back the borrowed money along with the interest.
Here is a look at all you need to know about a consumer durable loan and what you can use it for.
1. What can you take the loan for?
The loan is mainly taken to finance electronics used in most households. For instance, the loan money can be used to purchase a refrigerator, washing machine, air conditioner, microwave oven, laptop, desktop, smartphone, TV and a cooking range. In case of desktops and laptops, the lender may set a limit for the amount of money sanctioned.
2. What is the maximum sum that you can borrow?
There is no set limit for the amount of money that you can borrow. Usually, a consumer durable loan may be anywhere between a few thousands and Lakhs, depending on the product that you are looking to purchase. Before taking the loan, you would need to disclose the reason for the loan to the money lender.
3. Tenure for repayment of the loan
For a consumer loan service, there can be a varied tenure for repayment of the borrowed money along with the interest on the sum. Usually, the tenure may range from anywhere between 8 months and 3 years. The time allowed for the repayment varies from one lender to the next. It may also depend on the amount of money borrowed.
4. Interest charged for the loan
The interest rate charged on a consumer loan service also varies from one lender to the next. However, in India, it is generally around 15 to 22 percent. The rate depends on whether you are a salaried individual or a self-employed person. The rate is always higher for self-employed people, when compared to salaried individuals.
5. Eligibility criteria for the loan
Consumer durable loan is only available to people aged between 21 and 60. Apart from a valid identity proof, loan applicants will also need to provide a proof of income, so that the lender can ensure that he/she is capable of paying back the borrowed money along with the interest.
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