With many e-commerce and retail sellers offering the convenience of buying smartphones, laptops, refrigerators, air-conditioners and other electronic goods on EMIs, consumers can now own costly products without disturbing their financial budget. This is the main reason that consumer durable loans have gained massive popularity among customers from all income groups in recent times.
Almost all banks and non-banking financial institutions are providing consumer durable loans to facilitate affordability of costly appliances and the flexibility to pay for your purchase in easy EMIs, spread over a convenient tenor. Let’s find out about some of the prominent reasons for why it is better to buy electronics on EMIs:
As discussed above, the prime reason to opt for an EMI route to buy your favourite electronic appliances is that it makes them affordable. You may not have enough liquid cash to purchase costly devices like a new laptop, air-conditioner or a television set. You might have to either curb or compromise with your lifestyle. However, with the easy EMI option, you can finance your purchase and pay for them conveniently without crippling your monthly budget.
- Up to 100 Percent Financing
Another reason to purchase all your necessary and luxurious goods with consumer durable loans is that you get up to 100 percent financing of your bills. What this means is that you don’t have to pay a single penny out of your pocket to own your favourite electronic gadgets. However, it is recommended to fund 70-80 percent of the bill amount in EMIs and pay the rest as down-payment to save on your interest outgo.
- Instant Approval
A huge advantage of obtaining consumer durable loans is its quick approval process. This is because most of the lenders follow lenient lending terms and require minimal documentation to sanction these loans. All you need to do is fill up the loan application form, and furnish the required details and supportive documents. Your loan amount would be disbursed in your bank account within hours of approval and you don’t have to wait for long to buy your favourite appliances.
- Flexible Tenor
Another reason for preferring the EMI option to buy electronics is the flexibility it offers to repay the amount. The tenor for consumer durable loans generally ranges from 3 to 24 months and you can always choose a convenient tenor to repay the loans as per your income capacity and financial requirements. However, note that it is beneficial to opt for a short tenor to save on the interest amount.
- Low Interest Rates
When you make a purchase through a credit card and convert it into EMIs or fail to make a timely payment, you might have to pay a lot more amount since credit card companies charge a very high interest rate. However, in case of consumer durable loans, interest rates are very affordable and you can pay for your purchase in easy EMIs, without much difference from the actual price of the product.However, if you manage your credit score well and use your credit card magnificently, you may get credit card reward points which can helps you more with several benefits.
Also with many financiers offering ‘No Cost EMI’ schemes, you can actually save a lot of amount on buying your favourite electronic appliances. Hence, opting for consumer durable loans to finance your electronic purchases is a smart way to make things affordable which would otherwise have been difficult with a limited income.