All you need to know about consumer durable loans
While shopping for an electronic gadget or appliance like washing machine, smartphone, or an LED TV, offers might give you a little breathing room as far as financing the purchase is concerned. But these discounts only deduct a fraction from the total amount to be paid.
This might put you off and possibly prevent you from making the purchase. One way out of this financial fix is by opting for a consumer durable loan. To give you an example, consider the Durable Finance offered by Bajaj Finserv. When you sign up for one, you can get a loan amount of up to Rs.5 lakh with additional features such as, nil foreclosure charges, pre-approved offers, and instant online approval.
It’s a type of loan that needs to be paid on a monthly basis in the form of EMIs over a fixed tenure. Talking about EMIs, here are a few factors you should consider when you enroll for a Consumer Durable Loan.
The down payment and processing fee
The down payment is the money you have to pay once your loan application is approved. This amount is usually 20-25% of the commodity’s price. A larger down-payment, if you can afford one, can reduce the burden of EMI payments, thereby eliminating the possibilities of defaulting in the future.
The processing fee is another area you must pay attention to. Usually, this amount is charged by financial institutions in order to process your loan application.
Understanding rate of interest
Consumer durable loans might or might not come with a rate of interest. If a store is offering interest-free loans, it means that they’re paying your interest with their marketing budget. There might also be some hidden charges that the lender might be levying in lieu of the interest.
To give you options, there are plenty of interest-free schemes in the market today. Take Bajaj Finserv for instance. They have an exclusive app called Bajaj Finserv Experia that can be conveniently downloaded from the app store of your respective phones. Once done, you can register using your social media IDs or Aadhaar card, which will then be verified within 60 seconds. Upon successful verification, you’ll be forwarded a deal ID, which can be produced at Bajaj Finserv’s partner stores during payment. To download Bajaj Finserv Experia app, SMS EMI to 56070 or click here.
Payments to be made
Before your loan is sanctioned and repayment begins, you should ask the concerned financial institution to set the repayment tenure for a fixed term. You should however consider your financial stability before deciding on the EMI amount and tenure. Interest-free EMIs usually have a tenure between 8-12 months. EMIs with interest on the other hand have a tenure that goes up to a maximum of 12 months.
Opt for a consumer durable loan and deck up your abode with the latest tech and appliances without breaking a sweat.