Small things in life bring about tremendous happiness to your family. Purchasing a new television or a laptop is fulfilling. However, you may not always have the money required for such purchases.
An excellent and affordable solution for this is availing of a loan to purchase consumer durables. Here are four benefits of these loans.
1. Affordable
You may think of the high-interest cost when you apply for a consumer durable loan. Fortunately, the repayments on these loans are through equated monthly installments (EMIs) and most of the financers provide these EMIs at zero-interest. Furthermore, you would have to make a lower down payment to purchase your desired electronic item. These make such loans affordable for borrowers.
2. Instant approval
A huge advantage of a consumer durable loan is the quick approval process. This is because most lenders require minimal documentation to sanction these loans. All you need to provide is an income, residential, and identity proof. The entire procedure from application to disbursal of loan is completed in a short period of time, which makes it convenient for you to avail of finance.
3. No security requirement
When you choose to buy any personal electronic item like a laptop or smartphone, or household items like refrigerators or LCD TVs and decide to go ahead with purchasing them on EMI you do not have to provide any asset as security against the loan. This means you may easily avail of this type of finance without pledging your assets.
4. Easy repayment
The EMI is determined based on your financial situation. This provides flexibility while servicing the loan and ensures you do not face any financial crisis while repaying loan.
Although, consumer durable loans may be an affordable way to purchase electronics, you need to understand the following two factors before making your decision.
1. No discounts
Most institutions tie up with vendors to provide EMI without credit card schemes to buyers. However, when you choose this option, you may not receive the cash discounts and other offers that are available on your purchase.
2. Additional charges
Although the loans are available at zero-interest, you may have to incur processing fees. Therefore, consider these charges before purchasing electronics through these loans.
Repaying the loan with EMIs may be pocket-friendly. However, keep in mind the above two factors before making a decision. Therefore, evaluate your different options and apply for a consumer durable loan if your financial condition is halting you from making the purchase.
