Consumer Durable Loan

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 instalments. The main objective of consumer loans is to enable consumers to purchase essential goods such as mobile, television, laptop, fridge and other home appliances.

You can avail of a consumer durable loan for any amounts ranging from ₹3000 to ₹15 lakhs at a flexible repayment tenure of up to 48 months. The interest for durable loans are usually 0% 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, some lenders will charge interest rates ranging from 9.70% p.a. to 39.87% p.a.

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 0% - 3%
Late Payment charges Up to 6%
Prepayment charges 0% - 6%
Foreclosure charges 0% - 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 instalments.

TV loan: You can experience the best developments on 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 instalments.

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 instalment 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.

Monthly EMI 86
Principal Amount 1,000
Total Interest 32
Total Amount 1,032.00

Year Month Principal (A) Interest (B) EMI (A+B) Balance Loan Paid to Date (%)

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
The principal amount or P is ₹30,000
Interest rate or r is 10%
And tenure or n is 6 months

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
EMI = ₹5,147

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.
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
State Bank of India Fullerton
HDFC Bank L&T Finance
ICICI Bank Bajaj Finserv
IDFC First Bank PaySense

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Types of Consumer Durable Loans

Consumer durable loans are a type of personal loan that offers versatile solutions to those seeking to purchase high value durable goods. You can get the latest electronics or essential home appliances at affordable EMIs through these options below:

Instalment Loan: An instalment loan is a loan where borrowers get a specific loan amount which is repaid in equated monthly instalments (EMI) over a predetermined tenure. Through this loan type, you can take a secured or unsecured loan at a fixed or variable interest rate.

Secured instalment loan: A secured durable loan is a loan where the products you purchased can be secured against collateral. This usually involves the hypothecation of the consumer product purchased. The collateral can also be against fixed deposits, gold, etc. For this type of instalment loan the interest rate is usually lower.

Unsecured instalment loan: This loan requires no collateral which can cause the interest rate to be higher.

Fixed interest instalment loan: Here the interest rate for the loan is fixed throughout the loan tenure.

Variable interest instalment loan: Here the interest rate will differ depending on the market rates.

Credit card: You can also get consumer durable loans through credit card purchases. Usually, the amount is pre-approved, however, the interest can be a little high.

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Features & Benefits of Consumer Durable Loans

Consumer durable loans offer a range of features and benefits to help you get basic necessities without taking an expensive personal loan. These features and benefits include:

Quick Approval

Get swift access to funds
as a result of rapid
processing and approval.

No Cost EMI

Most lenders offer No
Cost EMIs or 0% interest
on the loan.

0 or Low Downpayment

Some lenders offer 0 or
minimal down payment to
ease the initial payment.

Easy Repayment

Choose from a flexible
range of tenures starting
from 3 to 48 months.

Flexible Loan

Consumer loans offer
amounts ranging from
3000to 15 lakhs.

Low Interest Rates

Some lenders offer low
interest rates.

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 11.99% p.a.
Processing Fee 0.5% - 4%
Loan Amount ₹10,000 - 15 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 or Download & install the Buddy Loan app (Android or iOS).

Step 2: Open the Personal Loan Application Page.

Step 3: Provide your mobile number and enter the OTP received.

Step 4: Enter the amount you wish to borrow.

Step 5: Provide your personal email.

Step 6: Select ‘Personal Loan’

Step 7: Choose whether you are Salaried, Self-Employed, or Student.

Step 8: Indicate if your salary is received in the bank or in cash.

Step 9: Fill in the following details; Company Type, Name, Address, Years in the current job, and Designation.

Step 10: Enter your Date of Birth, Gender, Highest Qualification, PAN Number, First Name, and Last Name.

Step 11: Specify your residence type, Years at the current address, and your address Pin Code.

Step 12: Provide the monthly salary, choose the preferred bank for the loan, and opt for a Credit Card if needed.

Step 13: Click ‘Submit’ to send your personal loan application.

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Frequently Asked Questions

A consumer durable loan is a type of personal loan usually taken to purchase essential durable goods more affordable.

You can get a consumer durable loan online or offline through various banks and NBFCs. However, lenders usually partner with retailers making it possible for you to get the loan during purchase.

Minimal documents are required for a consumer durable loan, these are Aadhaar card, PAN card, Passport, Driver’s licence, Rental agreement, Utility bills, bank account statements or ITR and P&L statements.

For salaried individuals, you need to be 21-65 years of age, with a minimum salary of 21,000 and a minimum work experience of 2 years. For Self-employment you need to be 21-68 years of age with a minimum income of 1.5 lakhs ITR, 2 years of business continuation and a credit score of 600.

To foreclose a consumer durable loan for, you can visit the lender’s website, select foreclose in the payment option available, enter the required details and pay the remaining amount along with charges if any.

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