With the easy availability of loans, more and more citizens are embracing a better standard of living. Be it a housing loan to help loan seekers put a roof over their family’s heads or business loans to earn daily bread and butter, the loaning industry has emerged as a saving grace for the citizens. However, owning a home or slogging away at work does not justify improved living standards. If the house is still empty or the long work hours are putting you under stress, they can degrade the quality of life.
A new house requires furniture, electrical appliances, etc. to turn a piece of property into a place you can call home. A person coming home after a long day at work deserves to unwind with his family while watching movies on a big TV screen and enjoying the cool breeze from the AC. However, not everyone can afford to purchase such expensive items in one-go without dipping into their personal savings. That’s where consumer durable loans come into the picture.
What are Consumer Durable Loans?
A consumer durable loan offers finance to people with insufficient savings and liquidity purchase costly durable goods by taking a loan. From basic necessities such as washing machines and kitchen appliances to luxury goods such as the tops phones and best phones 2019, they help consumers purchase all durable items. A consumer durable loan works on a tenure-based system wherein the period of repayment and rate of interest is negotiated pre-determined by both parties- the lender and the loan seeker.
For instance, if applicants have browsed through several smartphone tips and wish to purchase the best phones and top phones 2019, they may apply for mobile loans- a variation of consumer durable loans. Upon approval, the loan is disbursed instantly by the lender. And once the goods are purchased, loan seekers will start to pay the lending institution back in regular instalments or EMIs if they choose the mobile EMI option.
Eligibility Criteria of a Consumer Durable Loan
Although beneficial for loan seekers, several people dismiss the idea of taking a loan. The reason for this is the process for loan application and approval is notorious for being a tedious process. However, thanks to advancements in technology, applying for a loan is as simple as going online and filling up a form.
A consumer durable loan is one the easiest loans to apply for. All you require is a proof of identity, your proof of residence and income proof that states that shows that you have a steady income to support your payments and be in the ago group of 21-60 years.
For salaried applicants, the lenders may ask for salary slips of the previous three to six months. Self-employed professionals, on the other hand, will require to show years of Income Tax returns as well as a bank statement and balance sheet of the past few months for approval.
Last but not least, the lenders may check your previous repayment history and CIBIL score to seek assurance of your credibility. Hence, it is advisable to always maintain a good credit score to avoid disapprovals. Looking for quick loan disbursals? Contact Tata Capital to avail our tailored consumer durable loans. We offer affordable interest rates, flexible EMI and easy repayment options to help you purchase goods like the best smartphone and more on the market.