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Consumer Durable Loan

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If you're planning to buy a high-value electronic gadget or household appliance but don’t want to dip into your savings or strain your monthly budget, applying for a consumer durable loan can be a smart choice. It’s a type of personal loan that allows you to convert big-ticket purchases into easy EMIs, often with minimal or zero interest. On this page, we’ll walk you through everything you need to know about consumer durable loans — including interest rates, key features, eligibility, required documents, list of top lenders offering it and how to apply.

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Updated: 17-04-2025 08:13:59 AM

What is a Consumer Durable Loan?

A Consumer Durable Loan is a type of personal loan that helps you finance the purchase of electronic gadgets and household appliances such as smartphones, televisions, PlayStations, laptops, cameras, washing machines, modular kitchens, and more. These loans typically cover amounts ranging from Rs. 5,000 to Rs. 25 lakh (even more in some cases), making them ideal for both small and big-ticket purchases. The repayment tenure can be as short as a few months or extend up to 6 years or even more, depending on the lender’s terms and your repayment capacity. It’s a smart way to afford high-value items without putting pressure on your pocket.

Consumer Durable Loan Interest Rates

Interest rates for consumer durable loans usually start from 10% p.a. and can go up to 25–30% p.a., depending on various factors including the cost of the product (loan amount) and various aspects of your credit profile such as your credit score, income, employment type, etc.

Key Features of Consumer Durable Loans

Here are some key features of a consumer durable loan:

  • Interest Rate: Usually starts from 10% p.a.
  • Loan Amount: Rs. 5,000 – Rs. 25 lakh
  • Loan-to-Value (LTV Ratio): Usually up to 100% financing
  • No Cost EMI: Available with select lenders
  • Tenure: Up to 6 years (72 months)
  • Loan Type: Both secured and unsecured options are available
  • Documentation: Minimal
  • Processing Time: Quick disbursals

Consumer Durable Loan Options Offered by Various Banks

HDFC Bank – HDFC EASYEMI on Consumer Loans

Minimum Loan Amount Rs. 10,000 (under HDFC EASYEMI on Consumer Loans facility)
Maximum Loan Amount Under HDFC EASYEMI on Consumer Loans facility:

Consumer Durables: Rs. 5 Lakh
Lifestyle Products: Rs. 15 Lakh
Loan-to-Value (LTV) Ratio 100% financing
No-cost EMI facility Available under HDFC EASYEMI on Consumer Loans facility
Tenure 6 months – 4 years (for HDFC EASYEMI on Consumer Loans facility)
3 months – 2 years (for HDFC Bank No Swipe EMI facility)
Part-prepayment/ Foreclosure Charges Under HDFC EASYEMI on Consumer Loans facility:

Partial prepayment: Not allowed
Foreclosure charges: 3% of the balance principal outstanding + applicable taxes

ICICI Bank – ICICI Bank Consumer EMI

Interest Rate 9.95% – 28.64% p.a.
Loan-to-Value (LTV) Ratio 100% financing
Prepayment/Foreclosure Charges 5% of outstanding loan amount + applicable taxes

Kotak Mahindra Bank – Consumer Durable Loan

Loan Amount Up to Rs. 15 Lakh under Kotak Smart EMI facility
Loan-to-Value (LTV) Ratio Under Kotak Smart EMI facility: 100% financing or up to 30% of the product price as down-payment

Under Kotak InstaCRED facility: 100% financing
No-cost EMI facility Available under Kotak Smart EMI facility
Tenure 3 months – 1 year (under Kotak Smart EMI facility)
3 – 18 months (under Kotak InstaCRED facility)
Part-prepayment/ Foreclosure Charges Partial prepayment: Not allowed
Foreclosure charges: 4% of outstanding loan amount + applicable taxes (mandatory to pay first 3 EMIs)

IndusInd Bank – Consumer Durable Finance

Interest Rate 22.15% – 22.25% p.a.
Loan Amount Up to Rs. 20,000
Loan-to-Value (LTV) Ratio As applicable to the product
Tenure 6 months – 1 year

IDFC FIRST Bank – Consumer Durable Loan

Interest Rate 10.10% p.a. onwards
Loan Amount Rs. 5,000 – Rs. 8 lakh
Loan-to-Value (LTV) Ratio Depends on the product selected, schemes available and the eligibility criteria
No-cost EMI facility Available
Tenure 3 months – 3 years
Part-prepayment/ Foreclosure Charges Partial prepayment: Not allowed
Foreclosure charges: Up to 5% of principal outstanding + applicable taxes

Eligibility Criteria of Consumer Durable Loans

The eligibility criteria of consumer durable loans can vary across lenders due to their varying credit risk policies. It can also differ on the basis of the loan variant, product being purchased and the applicant’s occupation profile.

Here are some of the consumer loan eligibility criteria used by most lenders:

Age 18 – 75 years
Employment Type Salaried individuals and self-employed professionals/ non-professionals; some lenders extend such loans even to pensioners
Minimum Salary Rs. 15,000 to Rs. 75,000 per month, depending on lenders
Minimum Annual Income
(for self-employed applicants)		 Rs. 60,000 to Rs. 3 lakh p.a., depending on lenders
Employment Stability At least 1-2 years; some lenders may require longer experience
Business Continuity
(for self-employed applicants)		 1-3 years; some lenders may require longer period of business continuity

Documents Required to Avail Consumer Durable Loans

If you’re a pre-approved customer, you might not need to submit anything. Others will typically need to furnish these documents:

  • PAN Card
  • Aadhaar Card
  • Proof of Identity
  • Proof of Address
  • Proof of Income

How to Apply for a Consumer Durable Loans?

Online Method:

Most banks and NBFCs allow you to apply for consumer durable loans online through:

  • Official websites of the bank/NBFC
  • Mobile banking apps of the lender
  • Websites of partner retailers

Offline Method:

Those preferring the offline method can:

  • Visit a bank branch
  • Call customer support
  • Visit a partner store/outlet

Benefits of Consumer Loans

Here are the key benefits of availing Consumer Durable Loans, listed in simple pointers:

  • No Cost EMI Options: Many retailers offer 0% interest EMI plans—pay only the product price, no added interest.
  • Quick & Easy Approval: Get loan approval in minutes at partner stores or online platforms.
  • Minimal Documentation: Just your KYC documents are usually enough.
  • Flexible Tenure: Repayment period can go up to 6 years (higher in some cases), choose wisely.
  • Zero/ Low Processing Fees: Many offers come with zero or minimal processing charges.
  • Improves Credit Score: Timely EMI payments help build a strong credit history and improve your credit score.
  • Wide Range of Products Covered: Use it for TVs, ACs, smartphones, laptops, refrigerators, washing machines and more.
  • Budget-Friendly: Helps you manage big-ticket purchases in easy EMIs without disturbing your monthly finances or dipping into savings.

Consumer Durable Loan vs. Credit Card – A Quick Comparison

Factors Consumer Durable Loan Credit Card
Loan Amount Depends on applicant’s income, repayment capacity, LTV ratio, etc. Limited to the credit limit
LTV Ratio Up to 100% (usually) Not applicable
Interest Rate 0% to low interest (No Cost EMI Option) Usually higher (but offers available)
Maximum Tenure 6 years or even higher in some cases 3 years or even higher (in case of EMI conversion)
Security May require hypothecation Not required
Documentation Basic KYC may be needed No documents required, instant approval
Processing Time Quick approvals Instant purchase
Rewards/Cashback Not usually offered Some cards offer cashback/reward points
Where Can You Use Limited to partner stores & products Widely accepted online/offline globally
Ideal for Big-ticket planned purchases and lower EMIs Instant purchases and for those looking for convenience and opportunities to earn rewards

If you’re planning a big-ticket purchase and want to keep your budget intact with low or no-cost EMIs, a Consumer Durable Loan might be the smarter choice. But if you need flexibility, rewards and instant processing, using a credit card might be more convenient. Do a detailed cost-benefit analysis before making the choice. Consider all costs involved in availing the consumer durable loan before making the final decision.

FAQs on Consumer Loan

What is the maximum amount I can borrow with a consumer loan?

You can borrow up to Rs. 25 lakh or even higher, depending on the product being purchased, tenure, various aspects of the applicant’s credit profile (such as the income, repayment capacity) and also the lender’s internal risk policies.

Can I prepay my consumer durable loan? Are there any charges?

Yes, most lenders allow prepayment. However, prepayment/foreclosure charges (usually 3–5% of the outstanding amount) may apply. Check with your lender for specific terms.

What is the typical processing time for a consumer durable loan?

Approval can be instant at partner stores and online portals, especially for pre-approved applicants. Otherwise, it typically takes a few hours to 1–2 working days.

Is it possible to get a consumer durable loan with a low credit score?

Yes, some lenders may approve loans for applicants with lower credit scores, but the interest rates may be higher, and you may need to meet stricter eligibility norms.

What happens if I miss an EMI payment on my consumer durable loan?

Missing an EMI can result in late payment charges, drop in your credit score and collection calls or recovery actions if defaults continue.

 

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