What Is A Consumer Durable Loan?
A consumer durable loan is a kind of personal loan that makes it easy to buy high-end home appliances, electronic goods, and personal gadgets. It’s a good idea to apply for consumer durable loans to get the latest electronics and appliances that make everyday life easier, whether you’re moving or upgrading your home and kitchen.
With online consumer durable loans, the list of items that can be purchased is also extensive. A loan from Rs.50,000 to Rs.1,50,000 is available with no down payment. Refrigerator, mobile phone, professional camera, and other items can be purchased quickly and without a lot of paperwork.
Want a Consumer Durable Loan But Have a Low Cibil Score! Don’t Worry!
What is Processing Fees And Interest Rates For Consumer Durable Loans?
A consumer durable loan’s interest rate can be anywhere from 12 to 22 percent, depending on the lender. Based on their promotional offers, some lenders also offer zero percent interest. Most lenders charge a small processing fee of 1% to 3% of the loan amount.
Read: I Need 20000 Rupees Loan Urgently: 4 Ways To Help You
Do You Need An Urgent Loan of Rs 50000? Get a Loan on Aadhaar Card
What Is The Eligibility Criteria For A Consumer Durable Loan?
The majority of banks and NBFCs provide consumer durable loans to salaried and self-employed individuals. The applicant’s profile, repayment history, income, loan amount, and other factors may affect the eligibility requirements for a consumer durable loan. The following are the eligibility requirements that lenders require for a consumer durable loan:
Salaried Individuals:
Age: Minimum 21 years and Maximum 65 years
Minimum Monthly Income: Rs. 15,000
Experience in the current organization: Minimum 1 year
Self-employed Professionals:
Age: Minimum 21 years and Maximum 68 years
Minimum Income: Rs. 1.5 lakh
Employment Stability: At least 2 years in the current business
Read: Instant Loan App Without Salary Slip In India, 5000 Loan
Before Giving You Consumer Durable Loan, What Do Lenders Look For?
Your ranking (feasibility) as a borrower among potential lenders—banks and financial institutions—is reflected in your CIBIL score. This is a ranking system that helps lenders figure out if you’re eligible for a loan by letting them know how well you’ve paid back loans and credit card debt in the past. A score of 750 or above helps you secure a consumer durable loan more easily as it indicates higher creditworthiness.
But what if your credit score is low? Can you get a consumer durable loan on a low CIBIL score? What is the option then?
Read: How can you get a personal loan on a low CIBIL score? Learn Now
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Download The Money Club App For All Your Financial Needs
The Money Club- An Alternative to consumer durable loan on a low CIBIL score
The Money Club is a Fintech company that has built an AI-based P2P chit fund savings platform to enable people to save, borrow and invest digitally.
Chit funds are a saving as well as borrowing financial instrument. In a chit fund saving scheme, a group of subscribers save a fixed amount of money every month. You can save money from your salary to invest in chit funds each month. And when the need arises, you can bid to borrow a lump sum at affordable rates.
For expenses that you are likely to incur in the short to medium term, you can contribute into an appropriate chit fund scheme for a tenure of 2-3 years. So, when it’s time for the actual expense, your money is ready to use! No worries of debt, interest or good credit score. Consequently, it allows you to purchase all of the items that you’re wishing for a long time. Chit fund enables you to buy large and pay little.
Read: Know Your Money Club platform Journey On The Money Club App
