A consumer durable loan is a form of loan which a person takes for getting different household items like a refrigerator, air conditioner, washing machine, furniture or television. The best part about this type of loan is that the interest rates charged on consumer durable loans are quite lower compared to credit cards and even personal loans.
A consumer durable loan is also a type of unsecured loan. What is implied by this is that you can easily avail the loan without needing to put any of your assets as collateral. Your monthly income or salary along with a decent credit score will be more than enough to get the loan processed.
Follow the link below if you want to apply for a consumer durable loan
Reasons To Get Consumer Durable Loan
There are various reasons for which you can apply for a consumer durable loan.
Getting A New Appliance
Everyone wants to add new items to their convenience. Durables like air conditioners and refrigerators have become quite common these days and most people at one point of time or another want to get a hand on them.
Moving Into A New House
A new house needs all the furnishing right from everyday electronic appliances to furniture. You can use this loan to get all the requisite items for your new home.
You can get the best home appliances for your new house with the help of a consumer durable loan.
As A Gift
If you are looking forward to giving someone a quality washing machine or a microwave oven as a marriage or birthday gift then a consumer durable loan is the right option for you.
The way technology is getting advanced each day, old consumer durables are getting obsolete quickly. If you want to upgrade any of your appliances with the latest technology then this loan is ideal for you.
Benefits Of Consumer Durable Loan
The benefits of consumer durable loans are many to attract many borrowers. They are as follows:
Low Interest Rate
The interest rate in a consumer durable loan is much lower than that of other loans. Whether you apply for a personal loan or for credit cards, the interest rate you will be paying will be quite high especially in credit cards. But with this loan option, you can get the consumer durables of your choice with a low interest rate.
The documentation required for getting a consumer durable loan is quite minimal. You will just have to provide the basic documents pertaining to your identity, address and income proof. Get more insights about income verification in this post at Fortifid.
The online medium to get the loan gives you the benefit of great accessibility. Once you submit your documents, there will be a quick verification process and your loan will be approved instantly.
The tenure for getting a consumer durable loan is quite flexible. You can choose the repayment time period to be anywhere between 12 months and 60 months. Although it will also depend on the lender. Different lenders have different policies, so it is best to check it out.
The eligibility criteria, too, is quite flexible when it comes to getting a consumer durable loan.
The minimum age requirement for getting this loan is 18 years while the maximum is 65 years. But it differs from lenders to lenders. Some lenders demand the age to be above 21 years while the maximum age limit can also extend to 70 years.
Credit score, also known as CIBIL score, refers to your creditworthiness to repay the loan amount with all the due interest amount. The better the credit score the more offers you can get from the lender with regards to the loan benefits. However, it is recommended to keep the credit score above 650 at least to get the consumer durable loan.
Employment is an important criteria to get a loan. Since a consumer durable loan is an unsecured loan you will not have to use your asset as collateral. Here, you are the asset yourself. If you are a salaried person or even self-employed, you will be eligible for the loan. However, the loan amount to be given will be based on multiple factors like your income amount as well as your credit score.
Getting a consumer durable loan is, therefore, quite easy. Since the eligibility criteria is quite simple, most people will easily be eligible to get this loan. However, prior to getting the loan, you should make it a point to properly assess different factors such as income, the loan amount you need, the cost of the appliance you want to purchase, and the best offers available from the lender. There is no point in getting a loan that will put additional strain on your monthly budget. Once you clear out all of these points, you are good to go for a consumer durable loan.