10 Benefits of Buying Electronics on Loan from an NBFC Instead of a Bank

Electronics is the Indian consumer's favourite shopping category. The E-commerce market for electronics itself is estimated at ₹1.75 lakh crore ($20 billion). Electronics items, however, are expensive, but an electronics loan allows you to buy them without having to pay in full.

Be it washing machines or mobile phones from top brands, electronics are an essential part of our day-to-day lives. With a Consumer Durable Loan, you can buy electronics on equated monthly instalments (EMIs) and repay them in easy instalments. In this blog, we’ll discover why you should prefer Non-Banking Financial Companies (NBFCs) over a traditional bank for buying electronics with a loan.

10 Benefits of Buying Electronics on Loan from an NBFC Instead of a Bank

Here are the following benefits of buying electronics on loan from an NBFC over a bank:

1. Instant and Quick Approval

Banks follow stringent eligibility criteria. This is why you need to wait longer to get a bank loan. The eligibility, application and approval process is lengthy, involving extensive document verification and a credit check. NBFCs, however, provide instant approval and a quick disbursement.

You only need to provide your basic details, such as your mobile number, Aadhaar, and PAN card. Once your loan application is submitted, it will get approved within 10 minutes to a few hours. This quick approval makes it easy for you to purchase electronics without any delay.

2. Easy Documentation and Application Process

Banks generally request a list of required documents, such as salary slips, income proofs, bank statements, and more. NBFCs make it easier with minimal documentation. Most NBFCs request just basic KYC documents and basic information about yourself.

NBFCs follow an entirely online application process for consumer durable loans. This saves you time and effort, gives you instant approval to access funds, and helps you buy the electronics you need.

3. Flexible Repayment Tenure

Repayment convenience and flexibility matter no matter how small or big the purchase is. Suppose you want to buy a laptop for ₹60,000. However, your budget only allows you to cover EMIs of not more than ₹4,000. A 12-month EMI won't be helpful, as you will be paying ₹5,275 per month.

One of the key benefits of NBFCs is their flexible repayment schedules. You can decide on the repayment period based on your financial situation. This reduces the burden of EMIs and helps you manage your finances effectively. This is why you must always use an EMI calculator to ensure you choose a tenure and amount that don't burden your budget.

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4. Low Interest Rates and Minimum Processing Charges

NBFCs charge lower processing fees than banks because their operations are less complex. In addition, NBFCs offer much lower interest rates, particularly on a consumer durable loan.

Lower interest rates not only save you interest in the long term but also reduce your monthly instalments. This allows you to buy electronics on EMI without paying a hefty interest amount.

5. High Loan Amounts

NBFCs offer a higher loan amount than regular banks. This allows you to buy your desired product, expensive electronics, without worrying about the cost or paying the full amount up front. Whether you’re purchasing mobile phones or home appliances, you can buy the product you want. You can use a consumer durable loan to purchase multiple products, such as a laptop or a refrigerator.

6. Simple Eligibility Criteria and Faster Disbursement

Banks usually follow strict eligibility criteria, especially regarding income and credit history. However, NBFCs are more lenient in this area. You can easily meet the eligibility criteria of the consumer durable loan as both a salaried and a self-employed individual. Even if your CIBIL score is not excellent, you will be able to get a loan easily.

7. No Hidden Charges

Transparency is another primary reason to choose NBFCs. NBFCs offer a detailed breakdown of EMIs and charges associated with a consumer durable loan. You know the processing fees, foreclosure fees, bounce charges, prepayment charges, and more upfront. This helps you plan your loan repayment and monthly budget effectively.

NBFCs give you complete disclosure of all the details when you apply for the loan. This allows you to plan your payment schedule easily and avoid surprises in the future. You can see all the charges in advance through the key fact sheet or the important links provided by the NBFC.

8. Suitable for First-Time Borrowers

If you are a first-time borrower, it can be challenging for you to get a Personal Loan or a Loan Against Property from a bank. Lenders require a long credit history, a strong credit score and other financial documents.

However, NBFCs are more user-friendly for new customers, as they consider other factors to confirm your consumer durable loan eligibility. This ensures that more borrowers are eligible for loans and can buy electronics without any hassle.

9. Improved Service and Support

Applying for a consumer durable loan with a bank means going back and forth to the bank. However, it still doesn't guarantee good service. NBFCs, on the other hand, prioritise customer service as much as it does in making financing accessible.

The team responds to any query immediately, walks you through your loan application, and assists you in the process. The process from the sanction application onward is more straightforward and tailored. If you face any trouble with EMI payments or need to reschedule your repayment date, NBFCs are much more welcoming and cooperative than regular banks.

10. Easy to Track and Manage Loan Details

NBFCs make it easier to track and monitor your loan application status. You can view your EMI details, repayment tenure, and the remaining loan amount using their websites or app. NBFCs also implement robust digital security features and encryption to safeguard your personal data.

To Conclude

Electronics are more than just conveniences in today's digital age. Whether you're buying a laptop for work or a washing machine to bring home, save time. NBFCs offer consumer durable loans to help you purchase electronics on EMI.

At Poonawalla Fincorp, we offer Consumer Durable Loan to help you elevate your comfort and convenience. You can apply for a loan amount of up to ₹5 lakh and repay it in up to 24 months. Apply now and buy your favourite electronics in easy EMIs!

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FAQs

Can I get an electronics loan even if my CIBIL score is below 700?

Yes, many NBFCs approve consumer durable loans for applicants with lower credit history, though the interest rates may be slightly higher.

What happens if I miss one EMI payment?

Missing an EMI payment may attract a bounce charge and affect your CIBIL score, so it’s best to inform your NBFC and adjust your repayment schedule in advance to manage your expenses.

How long does it take for the loan amount to be disbursed after approval?

Most NBFCs offer quick disbursement, often within a few minutes to a few hours of approval for a consumer durable loan.

Can I prepay or close my electronics loan early?

Yes, NBFCs usually allow foreclosure or partial payment with minimal or no additional fees. However, the lender may impose a fee or charge.

Is an EMI card necessary to buy electronics on EMI?

Not always. Some NBFCs offer an EMI card, while others let you choose an EMI option directly during checkout.

What documents do I need to submit to get an electronics loan?

Typically, you need to submit KYC documents, identity proof, address proof, proof of income, and a valid bank account.

Can I buy multiple electronics with a single loan?

Yes, you can avail yourself of an EMI card or a single consumer durable loan to purchase multiple home appliances or mobile phones together.

How can I check my EMI details or repayment schedule?

You can easily track EMI details, loan tenure, and payment history using the lender’s mobile app or website through net banking.

Are NBFC interest rates on electronics loans fixed or variable?

Most NBFCs offer fixed interest rates, ensuring your monthly instalments remain the same throughout the loan tenure.