Loan for buying consumer durables
New Delhi: Typically people buy AC and fridge during summer to get relief from scorching heat. But if you buy these consumer durables during summer you will hardly get any discount from the manufacturer or dealer. As demand for these products is high this summer especially due to the second wave of Covid as most people are working from home, getting a discount on these products is difficult. However, one can easily finance his purchase of consumer durables through smart loan options.
Here are four loan options to help you purchase consumer durables this summer:
One of the most popular credit options for financing consumer durables purchase is personal loan. Interest rates on personal loans are between 9%-16% p.a., depending on the applicant’s credit score, monthly income, employer profile and job profile. One can easily get a personal loan up to Rs 30 lakh from banks for a tenure ranging between 1 to 5 years. Some banks are also offering up to seven-year tenure on personal loans.
Credit card EMIs
Many merchants, e-commerce websites, retailers, etc., tie-up with credit card issuers to offer exclusive discounts and EMI payment options on credit card purchases. Many card issuers also tie-up with merchants/manufacturers to provide no-cost EMIs to cardholders in which the interest component is borne by the manufacturer and the cardholder has to just repay the purchase cost in the form of EMIs. Some credit card issuers also offer additional discount on opting for no-cost EMIs. So look for these option on e-commerce websites.
Consumer durable loan
Many manufacturers tie up with NBFCs and banks, which come up with no-cost EMI options for consumers for purchasing consumer durables from offline stores. Here the buyer has to pay the original cost of the product in six, nine ot 12 equal instalments and no interest. Sometimes, these financing companies also offer cash backs if you buy consumer durables using their financing options. This scheme is suitable for those who do not have a credit card.
Loan against credit card
Credit card issuers offer pre-approved loan to select existing cardholders with consistent bill repayment history. Being pre-approved, processing time is less and the loans are disbursed instantly or within a few hours of making the application. Tenure can range between six months and five years and interest rates start from 15% depending on the tenure opted for and the credit profile of the card holder. However, this should be the last option for the buyer as these loans come with high cost.