Be it a college-going teenager eyeing best phones and top phones 2019 or an office-going individual who needs to swap from their old, bulky laptop and opt for a much more efficient and sleeker model, everyone could use an upgrade from time to time. Whether it’s a festive occasion or simply a family member’s birthday, the demand for consumer durable goods such as the best phones 2019 and top phones never ceases. Whether it’s the best phones 2019 that have caught your eye or an electric kitchen appliance that will make cooking simpler, you may wish to splurge on household items from time to time.
However, insufficient cash liquidity and poor cash reserves and savings can serve as a huge obstacle and cause hindrances in the buying process. That’s when consumer durable loans come to the rescue. Unfortunately, not many people possess adequate knowledge about consumer durable loans. Read on to find out what a consumer durable loan is and the benefits that they offer.
Meaning of Consumer Durable Loan
As the name suggests, a consumer durable loan is essentially a financing option that helps people purchase durable household items such as a washing machine, cooking appliances such as a microwave, electronic gadgets such as the best smartphone or LED TVs on the market and other items such as generators, water purifiers, music systems and so on. It covers everything from basic necessities to luxury products to help promote a better standard of living and you can avail consumer durable loans from any lending institution to fund your purchases.
How Does It Work?
A consumer durable loan is a type of personal loan wherein the loan amount can vary from anywhere between a few thousand rupees and go up to lakhs. So, upon approval and disbursal, applicants can use the money received to purchase the products. And just as any other loan, loan seekers will have a flexible tenure period fixed by them for repayment. Once the purchase is done, the loan seekers will then pay back the financial company in regular instalments or EMIs based on pre-determined interest rates.
Benefits of a Consumer Durable Loan
Now that you know how a consumer durable loan works, let’s take a look at some of the many benefits they offer.
1. Reduced Rate of Interest
Although a variation of personal loans, a consumer durable loan does not have a high rate of interest attached to it. While personal loans are usually expensive to repay, consumer durable loans are relatively cheaper and possess affordable interest rates. Moreover, certain lenders are willing to offer 100% financing for your purchase at extremely low to zero interest rates, thereby protecting you from shelling out your savings.
2. Minimal Documentation
Several people shy away from applying for loans as they are known to be a tedious process. Consumer durable loans, however, have very simple eligibility criteria. They require basic ID, income and residence proof for documentation purposes. Upon approval, the loan is disbursed almost instantaneously for quick purchases. Looking for easy availability of consumer durable loan for your new phone? Simply check smartphone tips and contact Tata Capital. We offer tailored mobile loans with flexible EMI mobile options to help you purchase the phone you deserve.