What is a Consumer Durable Loan? How does it differ from Credit Card?
Last updated: Jan 24, 2022, 06:33 AM ISTThere are a variety of electronic products in the market. With technological innovation year after year, there are upgraded versions of smartphones, HD TVs, home appliances, laptops, etc. available in the market both online and in-store sale. However, these consumer durable products are high-end and priced high. It is not affordable for every income group to buy consumer durable products.
Hence, shoppers make use of credit cards to buy their favourite consumer durable products. However, using credit cards is often not a profitable deal as a high-interest rate is charged and it keeps piling up when left unpaid. Even though you get the products same day, on-demand, it becomes difficult to clear the credit card bills when dues are not managed timely.
The next feasible option is applying for a consumer durable loan. It is a personal loan that enables borrowers to buy consumer durable products at an affordable interest rate and easy repayment tenure. Non-credit card users can take a Consumer Durable loan or a Mobile loan to buy iPhone 12 pro on an EMI basis. Some financial institutions offer consumer durable loans at 0% interest, especially during festival seasons. So, when you have plans to upgrade to the latest version iPhone or bigger HD TV, a consumer durable loan proves to be a safer option as compared to credit cards.
Why opt for Consumer Durable Loans?
- 100% product value approved
- Instant disbursal for the consumer durable product
- Minimal documentation for E-KYC verification
- Flexible repayment options for timely payment of EMIs
- No security deposits for loan application
When you pay for consumer durable loans on time, it helps in building up a stable credit score over a period of time. Being a collateral-free personal loan, consumer durable loans do not demand for any asset or guarantor. On the basis of income proof and basic eligibility criteria, consumer durable loans get approved instantly. Even those applying for a first-time loan are eligible for credit cards and instant loans.
Eligibility Criteria and Documents for Consumer Durable Loan
Every financial procedure involves an eligibility criterion, accompanied by a set of mandatory documents* to go further:
- KYC documents -Aadhar Card and PAN card
- You should be a citizen of India
- You should be either a salaried or self-employed individual
- Your minimum monthly income should meet the criteria fixed by the lender
- You should be at least 21 – 58 years of age
- Your credit history should meet the criteria set by the lender
*These criteria may differ from lender to lender
A credit card gives a personalised experience as you can swipe the card to experience financial benefits whereas an instant loan is also an easy
process that can be applied online through instant loan apps and websites. Based on your preference and convenience, borrowers can choose a consumer durable loan or credit card loan to purchase the latest gadget in trend.