Consumer durable loans are designed to help customers purchase everyday items such as electronics, appliances, furniture, and other household items. These loans provide you with flexibility to spread the cost of high-value purchases over a tenure at affordable monthly installments. The main objective of consumer loans is to enable consumers to purchase essential goods such as mobile phones, televisions, laptops, fridges, and other home appliances.
You can avail of a consumer durable loan for any amount up to ₹35 lakhs at a flexible repayment tenure of up to 48 months. The interest for durable loans usually starts at 9.99% or no-cost EMIs.
Consumer Durable Loan Interest Rate
The interest rate on consumer loans will differ depending on the lenders. While many lenders offer zero-cost EMI or 0% interest, standard rates start from 9.99%.
| Consumer Durable Loan Provider | Interest Rate (p.a.) |
| HDFC Bank | 10.99% onwards |
| ICICI Bank | 9.97% onwards |
| IDFC FIRST Bank | 9.8% onwards |
| IndusInd Bank | 22.15% onwards |
| HDB Financial Services | 10% onwards |
| TVS Credit | 0% onwards |
| Bajaj Finance | 0% onwards |
| Home Credit India | 0% onwards |
The interest rate for consumer durable loans is determined by the cost of the product and the customer’s profile, such as their credit score, employment type, and tenure.
Consumer Durable Loan Fees & Charges
Apart from the interest rate, an instant consumer durable loan also has other fees and charges that are applicable. These fees and charges will differ from one lender to another; do check with the respective banks to get accurate information.
| Processing fees | Up to 5% |
| Late payment charges | Up to 6% |
| Prepayment charges | Up to 6% |
| Foreclosure charges | Up to 5% |
| Cheque bounce | 2% + GST at 18% or (400 – 500) |
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MultiPurpose Consumer Durable Loans
A multipurpose consumer durable loan is a financial product that is designed to provide individuals with the flexibility to purchase a wide range of consumer goods. Here are the different types of consumer durable loans that you can avail:
- Mobile Loan: Buying a mobile on EMI is a convenient way to upgrade your device without making a lump sum payment from your savings. The loan covers the entire cost of the device, and the repayment is spread over manageable monthly instalments.
- Laptop Loan: A consumer durable loan tailored for purchasing a laptop on EMI is a convenient solution to acquire the latest computing technology. This option allows individuals to spread the cost of their laptop over manageable monthly installments.
- TV loan: You can experience the best developments in home entertainment with a consumer durable loan designed for the purchase of a TV on EMI. You can now bring home cutting-edge technology without a significant upfront investment.
- Fridge Loan: Elevate your kitchen space by purchasing the newest fridge on EMI. This loan provides you a comfortable option to get a modern refrigerator while effectively managing your budget.
- AC Loan: Getting an AC on EMI is a great way to embrace a cooler and more comfortable environment without making a hefty upfront one-time payment. It’s a cost-effective way to beat the heat at competitive interest rates and flexible repayment plans.
- Washing Machine Loan: Simplify your laundry routine by purchasing a washing machine on EMI. You can get the latest washing machine at affordable monthly installments.
- Furniture Loan: Redecorate your living room by purchasing new furniture on EMI. Get the latest furniture designs without having to break your budget.
Consumer Durable Loan EMI
The equated monthly installment for consumer durable loans is a fixed amount paid by a consumer to repay the loan on purchasing durable goods. It will consist of both the principal and interest amount. Some lenders offer zero-cost EMIs whereby there is no interest charged on the loan and the borrower will only repay the principal amount of the loan along with the processing fee & applicable GST.
The EMI amount is an important part of the repayment process that will impact your finances. Therefore, it is important for you to know the EMI before getting a consumer durable loan. You can calculate the EMI for the loan by using the online EMI calculator above. All you need to do is input the principal amount, interest rate and tenure of the loan.
| You can also calculate the amount by manually calculating using the formula:
EMI=P*r(1+r)n/(1+r)n- 1 Here, P is the principal amount, r is the interest rate and n is the tenure. Below is an example of the EMI calculation if Substituting the values, EMI = 30,000 x (10/12 x 100)(1+10/12 x 100)6/(1+10/12 x 100)6-1 EMI = 30,000 x 0.008333 x 1.051160/0.05116 EMI = 30,000 x 0.008749780/0.05116 EMI = 30,000 x 0.17085 As per the calculation, the EMI for a loan amount of 30,000 at an interest rate of 10% for a tenure of 6 months is approximately ₹5,147. Note: This calculation is merely an example to provide a better understanding on how to use the formula. Please check with the lender for an accurate estimation. |
Consumer Durable Loan Eligibility
Getting consumer durable loans like a TV loan or laptop loan will require certain eligibility criteria that must be met by salaried and self-employed borrowers. These criteria will differ depending on the lenders. These requirements are:
Salaried Individuals
| Age | 21 – 65 years |
| Minimum work experience | 2 years |
| Minimum income | 21,000 |
| Credit score | Above 600 |
Self-Employed Professionals
| Age | 21 – 68 |
| Minimum work continuation | 2 years in the business |
| Minimum income | ITR of ₹1.5 lakhs |
| Credit score | Above 600 |
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Top Bank & NBFC Offering Consumer Durable Loan
Banks and NBFCs offer personalised solutions for borrowers who are looking to take a consumer durable loan. They offer competitive interest rates and various benefits that borrowers can take advantage of. Below is a list of the top banks and NBFCs offering instant consumer durable loans:
| Top Banks | NBFCs |
| HDFC Bank | L&T Finance |
| ICICI Bank | Bajaj Finserv |
| IDFC First Bank | PaySense |
| IndusInd Bank | MyMoneyMantra |
| Bank of Maharashtra | Tata Capital |
| Yes Bank | Navi |
Types of Consumer Durable Loans
Consumer durable loans help individuals purchase electronics, appliances, furniture, and other high-value household products through affordable monthly installments. Depending on the lender, these financing options may be offered as a dedicated consumer durable loan, a personal loan, or a merchant-based EMI facility.
Here are the different types of consumer durable loans and financing options available in India:
- Consumer Durable Instalment Loans: An instalment loan allows borrowers to purchase products and repay the financed amount through fixed monthly EMIs over an agreed tenure. Interest rates and processing fees vary by lender.
- No-Cost EMI Loans: These financing options allow eligible customers to purchase selected products without paying additional interest under qualifying promotional schemes. However, processing fees, GST, or other applicable charges may still apply.
- Buy Now, Pay Later (BNPL): BNPL enables customers to purchase eligible products immediately and pay later, either through a deferred payment or smaller installments. Depending on the provider, the facility may include an interest-free period, processing charges, or late payment penalties.
- Credit Card EMI: Customers can convert eligible credit card purchases into monthly installments. Some banks also provide merchant-funded no-cost EMI offers on selected electronics and appliances.
- Debit Card EMI: Certain banks offer pre-approved EMI facilities to eligible debit card holders, allowing them to purchase consumer durables without using a credit card.
- Secured Consumer Durable Loans: Some financing arrangements use the purchased product or another eligible asset as security. The lender may retain a security interest until the borrower completes repayment.
- Unsecured Consumer Durable Loans: These loans do not require borrowers to pledge separate collateral. Lenders assess eligibility based on income, credit history, repayment capacity, and other factors.
- Fixed and Floating Interest Rate Loans: Most consumer durable EMI products use fixed repayment schedules. Some other financing arrangements may offer floating interest rates, where applicable, depending on the loan agreement.
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Features & Benefits of Consumer Durable Loans
Consumer durable loans offer several features and benefits that help you purchase essential appliances, electronics, and furniture without paying the entire cost upfront. These financing options make high-value purchases more manageable through flexible EMI plans.
Here are the key features and benefits of consumer durable loans:
- Affordable Monthly EMIs: Spread the purchase cost across manageable monthly instalments instead of making a lump-sum payment.
- Flexible Repayment Tenure: Choose repayment periods ranging from 3 to 60 months with select lenders.
- No-Cost EMI Options: Eligible products may qualify for no-cost EMI schemes, although additional charges may apply.
- Zero Down Payment: Selected products qualify for financing without an upfront down payment.
- Quick Loan Approval: Digital eligibility checks and simplified verification can speed up approval.
- Minimal Documentation: Apply using basic KYC and income-related documents, depending on the lender.
- Wide Product Coverage: Finance smartphones, televisions, refrigerators, washing machines, laptops, and other household essentials.
- Convenient Shopping: Access financing through participating online retailers and physical stores.
Personal Loan for Consumer Durables with Buddy Loan
If you are looking to purchase new appliances, upgrade your TV or laptop or even buy a new refrigerator, you can opt for a personal loan for consumer durables with Buddy Loan. Buddy Loan is a loan marketplace where you can get the best loan offers and terms that suit your financial requirements.
Get affordable loans from a wide range of lenders including Axis Bank, ICICI Bank, PaySense, IDFC First Bank, Money View, and more and enjoy flexible repayment terms. Below is a table depicting the offers provided by Buddy Loan:
| Interest Rates | Starting from 9.99% p.a. |
| Processing Fee | Up to 4% |
| Loan Amount | ₹10,000 – 35 Lakhs |
| Tenure | 6 months to 5 years |
Steps to Apply for Consumer Durable Loan
You can now seamlessly access consumer durable loans online through Buddy Loan. Here are the convenient and easy steps you can take to apply for a consumer durable loan:
- Step 1: Visit buddyloan.com or download & install the Buddy Loan app (Android or iOS)
- Step 2: Open the personal loan application page. Provide the mobile number and enter the received OTP.
- Step 3: Specify the desired loan amount. Next, choose the Personal Loan option
- Step 4: Choose the employment type (salaried or self-employed) and the salary mode (bank or cash).
- Step 5: Enter your work details (including company name, years of service and designation)
- Step 6: Enter your personal details (including full name, PAN, address, DOB & gender)
- Step 7: Provide your communication address and income details, and click the ‘Submit’ button.
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