Know the Top Benefits of a Consumer Durable Loan

A consumer durable loan is one of the most convenient credit options to buy household goods. Be it LED televisions, refrigerators, washing machines or kitchen appliances, everyday electronics need an upgrade to better serve you and your family. This loan helps you buy such essentials on EMIs. 

Here are a few aspects you should know before you opt for a consumer durable loan online:

• Your credit score affects the loan amount you can get
• This is a collateral-free loan option
• Lenders will check your annual income before proceeding 
• Reading the loan terms of your lender is key

Rather than saving up and waiting to purchase that appliance you’ve been eyeing, you can bring it today with the right loan. 

What is a Consumer Durable Loan?

Similar to personal loans, these loans are usually used to purchase household gadgets or furniture. You can avail of the amount to buy anything you like and repay the loan amount in EMIs across your chosen tenure. It is important to check the interest rate, so your repayment is pocket-friendly. 

Do not confuse these loans with EMI facilities that you can get by using credit or debit cards. This is also different from ‘Buy Now Pay Later’ options or EMI schemes offered directly by retailers, which may come with zero-cost EMIs or have an interest as decided by the financial company. 

Types of Consumer Durable Loans

Here are different types of instalment loans you can use to buy consumer products. 

• Secured CDLs: This type of loan requires you to pledge collateral
• Unsecured CDLs: This option allows you to secure a loan without any collateral but has a higher interest
• Fixed-rate CDL: This option has a fixed rate of interest through the tenure  
• Variable-rate CDL: Your interest rate varies with the outstanding balance 

Also Read: Secured vs Unsecured Loans

Features and Benefits of Consumer Durable Loans

Some of the pros of relying on such loans are as follows: 

• Enjoy up to 100% financing for your purchases without any need for down payment
• No need to check if the models you want to buy are supported by the EMI schemes of the retailer or your credit/debit card 
• Ample loan amount of up to ₹5 to ₹15 lakhs
• Flexible repayment tenures up to 36 months or more
• Low or zero foreclosure charges so you can become debt-free early 
• Offers fast disbursals so you can shop for everything on your wish list
• Requires minimal documentation and has an easy online application
• Helps you build your credit score with timely payments

Consumer Durable Loan Eligibility Criteria

The eligibility terms are different for a salaried employee and a self-employed professional. Check them out here:

Particulars	Salaried Employees	Self-employed Professionals
Minimum Age	21 years	21 years
Maximum Age	68 years	68 years
Minimum Income	₹15,000 per month or as per the lender criteria	₹1.5 lakh per annum or as per the lender’s criteria
Employment Duration	Employed for more than a year	Must have a business for at least two years or more

Essential Documentation

The process begins with filling out the application form for a CDL. You also need to submit your passport-sized photographs. The rest of the documents required are as follows:

• Identity proof
• Address proof
• Income proof

Also Read: How to Apply for Home Renovation Loans

You can submit the following documents.

• Aadhaar Card
• Voter’s ID
• PAN Card
• Passport
• Bank Account Statements
• Utility Bill (not more than 3 months old)
• Lease Papers
• Property Purchase Agreement
• Driver License
• Salary Slips (for salaried employees)
• Income Tax Returns (for self-employers)

The Fibe Instant Personal Loan is a great way to purchase consumer durables without relying only on your savings. You can get up to ₹5 lakhs and repay comfortably in up to 36 months. You also have the option to close the loan before tenure without any additional charges. To apply, download our Personal Loan App or apply directly on our website. 

FAQs on Consumer Durable Loans

What is the difference between personal loans and consumer durable loans?

Both loans are very similar and in fact, you can get a personal loan for consumer durables. That being said, you may find some differences between them based on the financial company. Personal loans may offer you a higher loan amount and longer tenure, while consumer durable loans may come with a lower amount and a shorter tenure. 

What is an example of a consumer durable loan?

A smart TV loan or an instant consumer durable loan to buy an AC are some examples. You can even consider a personal loan for home improvement as this kind of loan.

Does a consumer loan affect CIBIL score?

Yes, it does. Since it is a credit facility, the loan amount and your repayment will affect your credit score and be reported in your report. 

Can I close a consumer durable loan early?

Yes, you can foreclose your consumer durable loan. The process of foreclosure will vary from lender to lender. There may be no added charges in some cases and a penalty charge in others. At Fibe, you can get an instant loan to shop for consumer durables and foreclose the loan at no added charges.