So, do you want to upgrade that TV hanging in your living room to catch the upcoming cricket season in full HD? Or maybe you want to finally bring home that latest air conditioning system for the summer? Or what you require the most is to exponentially increase the value of your kitchen with the latest three-door refrigerator. No matter what electronic gadget or appliance you want in your life and home, a single type of loan called consumer durable loan can let you buy anything you desire.

Some information on consumer durable loan

A consumer durable loan is a loan offered by banks and online lenders to their customers to buy household items or personal devices like TVs, home theatre systems, air-conditioners, laptops, refrigerators, smartphones, cameras, modular kitchens, etc.

Consumer durable loans are small-ticket loans that help you buy home appliances at easy EMIs. The loan is extensively used to purchase durable products like TV, laptop, washing machine, AC, fridge, microwave, kitchen appliances, furniture, etc. The loan is offered on products that come with a warranty.

This type of loan is proper when you want to upgrade your lifestyle but cannot because of no liquid fund. As your loan passes, the amount is directly disbursed into your account and the repayment is set to happen in installments.

Interest rate of consumer durable loans

Consumer durable loans offer an interest rate generally lower than personal loans and credit cards. But sometimes, an instant loan can be a better option than a consumer durable loan. The interest rate for consumer loan varies from lender to lender. You can enjoy low interest on consumer durables with instant loans.

Documentation involved in consumer durable loans

A few basic documents are needed to avail a consumer durable loan. The documents include ID proof, proof of income, and address proof.

Tenure of consumer durable loans

Tenure of most consumer durable loans ranges from 3 to 24 months. As these are small loans, the tenure is mostly short. But different lenders can offer different tenures and different interest rate options. Note that a shorter loan tenure will make your EMI higher, and a longer tenure will make your EMI low.

Down payment of consumer durable loans

To avail of a consumer durable loan, you are required to make certain down payment at the time of purchase. You can let go of the down payment by taking an instant personal loan for consumer durables. But if you are taking a consumer durable loan, you are mostly required to pay around 5% to 20% of the cost at the time of buying the product as down payment.

So, are consumer durable loans good for you?

Consumer durable loans are great for consumers when they are making small purchases. Its demand has risen over time making the competition in the segment intensified for the lenders. A number of different lenders offer consumer durable loans. Many firms even offer consumer durable loan at a 0% interest rate. Because of the stiff competition in the market, the lenders are offering different additional benefits and excellent services to attract more customers.

The demand for consumer durable loans and instant personal loans to buy consumer durable items has been driving high competition. The growing number of middle-class families have raised the demand for consumer durable loans. The steady growth in income and the willingness to make life easier and comfortable with home durable items have led to the selling of more and more durable goods like electronic items, kitchen appliances, furniture etc.

Consumer durable loans are quite popular in rural areas as well. In fact, the introduction of consumer durable loans has increased the sales of consumer durables significantly. Electronic items like refrigerators, flat TVs, sewing machines, mixer grinders, air coolers, etc., are a few of the best-selling consumer durable items in rural areas.

The financing option in the form of consumer durable loans and instant loans for consumer durables has been impactful in standardizing the lifestyle of middle-class families. More expensive consumer goods like washing machines, refrigerators, personal computers, colour televisions, etc., have become accessible to the increasing middle-class populace thanks to the easy EMI options offered by financial firms. While some lenders offer nominal down payment and a small processing fee, many lenders are also offering personal loans at zero down payment and zero interest.

The availability of consumer financing has encouraged India’s lower and middle-income groups to bring home durable items and make their lives comfortable. The flexibility of the schemes and the cost of borrowing is in favour of consumers.


Consumer durable loans have made purchasing costly home durable items affordable. It is no doubt a straightforward and easy way to upgrade your lifestyle without hampering your monthly budget. Minimal documentation, instant loan disbursal, quick approval, and low interest rates have made consumer durable loans and instant loans for consumer products much more attractive than using a credit card to purchase home durable appliances and furniture.