Many people are increasingly purchasing consumer durable products, such as washing machines, air-conditioners, televisions and refrigerators. Therefore, manufacturers are constantly launching new products with advanced technology and excellent features. Several of these high-end products are expensive and therefore you must plan your purchases to avoid financial difficulties in the long run.
Financial institutions like Capital First provide an excellent alternative if you do not have adequate cash for making outright payments. Lenders provide consumer durable (CD) loans enabling you to easily acquire the latest products. Here are four benefits of such loans.
1. Lower down payments
You may apply for a consumer durable loan ranging from a minimum of INR 8,000 to a maximum of INR 5 lakh. Furthermore, lenders may offer a higher percentage of the purchase price as a loan, thereby reducing your initial down payment.
2. Simple and fast procedure
Documents required for purchasing consumer durable products like a washing machine or TV on loan are minimal. In addition, the entire procedure from loan application to disbursement is completed within a few days. This allows you to quickly buy the desired product.
Contrary to popular belief, the interest rate on such loans is affordable. Some lenders may also provide 0% interest loans.. This makes buying products like a refrigerator on loan a lot more economical.
4. Absence of collateral requirement
Unlike an auto or home loan, consumer durable loans are unsecured. This means you do not have to provide an asset as collateral to avail of such loans. Therefore in case you purchase products like a washing machine on EMI and are unable to pay the EMI on time, there is no risk of losing your asset but this will severely impact your credit score.
You may consider using your credit card to pay for your purchase. However, the interest payable on your credit card is significantly higher than that on a consumer durable loan. Moreover, if you do not want to block the credit card limit you must select the EMI without credit card option to make your purchase. Financial institutions like Capital First help you fulfill your needs by offering 0% interest, low down payments, and flexible repayment options. By availing of a consumer durable loan from such a lender, you may conveniently purchase the latest consumer durable products without facing financial constraints.