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The What, Why, and How of Consumer Durable Loans

Guest Author | 19 Jan, 2017  | Follow Author | Add to my Favourites 
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Being a proud owner of small luxuries in life is no longer an impossible dream. You may easily upgrade your television or refrigerator, purchase a laptop, or install an air conditioner in the living room with consumer durable (CD) loans offered by most financial institutions in India.

CD loans are Equated Monthly Installment (EMI) based financial resourcesprovided for purchasing consumer durables. Some of the products you may purchase using such loans include recliners, televisions, modular kitchen, washing machine, mobile phones, laptops, and much more.

Here are five features of CD loans.

  • Affordability

When you apply for consumer durable loan, you do not have to pay a large down payment. Furthermore, these are available at 0% interest, which makes repayment easier and affordable.

  • Minimal documentation


Compared to other loans, such as loan against property (LAP), CD loans require minimal documentation. This enables you to conveniently and quickly purchase products like phones without a credit card.

  • Absence of collateral requirement


CD loans are unsecured loans. This means you do not have to mortgage your personal asset while availing of a loan. Therefore, in case you fail to make timely repayments, you do not face the risk of losing your personal asset.

  • Higher loan amount


Lenders provide CD loans for a minimum amount of INR 8,000 and up to a maximum of INR 5 lakh. This ensures you are able to purchase your desired product without being limited by lack of funds.

  • Flexible repayment


A CD loan is repayable in monthly installments. Lenders offer flexibility to you while determining the EMI schedule based on your personal financial situation. This ensures you do not face any liquidity crises while repaying the loan.

Eligibility and documentation

If you are between 21 and 65 years old, you may apply for a consumer durable loan. You will have to submit basic documentation like Know Your Customers (KYC), repayment mandate, and the cheque for your first EMI at the time of application.

Benefits of CD loans

  • Low processing fees
  • Minimum down payment
  • Easy repayment due to longer loan tenure

If you want to buy any consumer durable product like a TV on loan you do not have to worry about arranging finance for making your purchase. You may approach a reputed and reliable lender to avail of a CD loan and easily purchase consumer durables on EMI without credit card requirement.


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