Top 7 Key Benefits and Features of a Consumer Durable Loan
Consumer Durable (CD) loans are financing options for purchasing different consumer durable products such as televisions, ACs, refrigerators, washing machines, laptops, music systems, etc. Nowadays, individuals often opt for more than one consumer durable loan as they find it a viable financial solution to serve their requirements for such products.
CD loans are tailor-made for buying lifestyle products, which means, they offer various features and benefits over other types of finances. Let’s take a look at some of the key benefits and features of this type of credit.
1. Substantial Loan Amount
Consumer durable loans provide the upfront finances to purchase such products. More often than not, the loan amount covers the larger portion of the product’s price tag. First-time consumers may need to provide a certain section of the product’s price tag as processing or application fees. However, top financial institutions generally cover at least 75% of the product price at the time of purchase.
Some financial institutions even offer 100% financing, which is an excellent option if you are purchasing an expensive product. You won’t have to make any down-payments, and you can pay for the product with affordable EMIs.
2. Collateral-Free Financing
You don’t have to pledge any security or collateral when you avail a CD loan from a financial institution.
3. Affordable Interest Rates and Charges
Although interest rates vary between lenders, most financial institutions offer affordable interest rates for these loans. Rate of interest with these loans is comparatively lower than with personal loans. A consumer durable loan is thus a better option to buy electronics and appliances than using a personal loan for the purchases.
Financial institutions may also charge a nominal fee while processing the credit. It is calculated as a percentage of the loan amount. You will find these under the A to Z of consumer durable loans.
4. Pre-Approved Offers
Leading financial institutions including Bajaj Finserv provide pre-approved offers on their Consumer Durable Loan. These pre-approved offers are also valid on various other financial products and services like personal loans, home loans, business loans, etc. Such offers make the whole process of availing funds hassle-free and time-saving. You have to provide some necessary details online to check your pre-approved offer.
5. Flexible Tenor
A noteworthy feature of such loans is the facility to choose a tenor according to your preference. Generally loan tenors range from 3 to 24 months; however, it may vary between different lenders and the product you are purchasing. You can choose a shorter tenure if you want to save money on interest. You can also choose an advance with the zero cost EMI features, where you will pay only the product price as EMIs.
6. Easy Documentation and Quick Disbursal
Applying for a loan to buy durable goods are relatively hassle-free thanks to minimum documentation criteria and instant approvals. You only have to provide some necessary documents like proof of identity, proof of residence, proof of income, etc. while applying for the credit.
Also, you will enjoy quick approval and disbursement whenever you apply for a consumer durable loan. It takes only a few minutes to approve the credit, and the loan amount will be credited with 24 hours of approval.
7. Zero Foreclosure Charges
You can pay the rest of the loan amount and foreclose it at any time without paying any extra fees. It is a great feature that saves you money when you choose to foreclose it. You will also know how to improve your CIBIL score when you decide to pay it early.
You can avail a consumer durable loan for a variety of amenities to improve your lifestyle. From electronic appliances to furniture, you can buy your favourite durable goods, without worrying about paying a lump sum amount at the time of purchase.
