How to Use Consumer Durable Loans for Diwali Home Makeovers

Consumer durable loans provide a smart and affordable way to cover the many expenses that come with Diwali. The Festival of Lights inspires a fresh start, and this loan helps you enjoy the festive season without draining your funds. This blog explains how you can plan your home makeover with a Consumer Durable Loan, and how to avail of it. Keep reading!

How to Use Consumer Durable Loans for Diwali Home Makeovers

Consumer durable loans are ideal financing options for purchasing household electronics, furniture, appliances and gadgets, and other white goods. Lender tie-ups enable you to sign up for the loan and benefit from EMIs at the point of sale itself.

The following steps will help you utilise these loans to give your home a makeover:

1. Plan Your Makeover Budget: Begin by noting down every item you’ll need, from air conditioners and LED televisions to sofas and dining sets. Then look up current market prices and draft a budget, keeping a 10-15% buffer for surprise costs.
2. Pick The Dealership: If there’s a specific lender you have in mind, look up their list of enrolled dealerships; those stores will be the ones you make your purchase from.
3. Time Your Purchases Strategically: Make the most out of retailer sales, Diwali loan offers, and potential policy changes. Currently, the GST structure changes could mean goods charged at the 12% slab could be charged at 5%, and goods taxed at 28% will drop to 18%. Thanks to this, many consumer goods will become more affordable, making your loan amount smaller and EMIs lighter.
4. Choose Quality Over Quantity: Purchase energy-saving, high-quality appliances that’ll be of value in the long run. Give precedence to items that improve everyday life and lower future maintenance expenses.
5. Additional Savings: A Diwali loan offer may also unlock additional brand-specific cashback on purchases. Ensure you ask your dealership about any deals on cashbacks or discounts.
6. Consider Future Needs: If there’s a plan to upgrade the kitchen or the living room, think about the items that you might need within the next few months. Purchasing them while a sale is on leaves you with more manageable EMIs.

Also Read: How Can I Buy a New Phone on Easy EMI

How to Avail of Consumer Durable Loan

• Check Eligibility: Start by reviewing the lender’s website to ensure you meet the basic criteria for age, income, and credit history.
• Select Product and Financing Plan: Select the item you wish to purchase from a partner store or an e-commerce website. At checkout, choose the EMI or financing option offered by the lender.
• Fill the Application Form: Fill in the digital application form with your personal, contact, and employment details.
• Submit KYC Documents: Upload minimal KYC documents, which usually include your PAN card, Aadhaar card for e-KYC, and recent bank statements or salary slips for income verification.
• Get Approval: Upon the swift verification of your documents and details, you’ll get the loan approval. Examine the sanction letter and sign the digital agreement to authorise the automatic debits of EMIs from your bank account. The funds are then disbursed to the seller, and you can take home your new product.

Also Read: 6 Benefits of a Consumer Durable Loan You Probably Didn’t Know

To Conclude

A Consumer Durable Loan is an excellent financial tool to help you achieve your dream Diwali home makeover without financial strain. By planning your purchases, creating a budget, and choosing the right lender, you can easily upgrade your home appliances and electronics. This festive season, welcome guests into a refreshed, modern home, making the celebrations even more memorable.

Poonawalla Fincorp offers hassle-free consumer durable loans at attractive rates and across a range of enrolled dealerships, making your dream purchases much more accessible.

Frequently Asked Questions

What is a Consumer Durable Loan?

A Consumer Durable Loan is a type of financing specifically designed to help you purchase household appliances, electronics, and gadgets. It allows you to buy products immediately and pay for them in affordable monthly instalments (EMIs) over a set period.

What items can I purchase with a Consumer Durable Loan?

You can buy a wide range of products, including refrigerators, TVs, washing machines, air conditioners, microwave ovens, smartphones, laptops, and furniture. The exact list may vary slightly from one lender to another.

Is a good credit score necessary for a Consumer Durable Loan?

While not always a necessity, a good credit score (typically 700 or above) significantly improves your chances of getting approved for a loan with favourable terms and a lower interest rate. Lenders view a high score as an indicator of responsible credit behaviour.

What is the typical repayment tenure for these loans?

The repayment tenure for a Consumer Durable Loan is flexible and can range from 3 months to 24 months. You can choose a tenure that suits your budget, allowing you to manage your monthly EMI payments comfortably.

How quickly is a Consumer Durable Loan approved?

Thanks to digital processes, most Consumer Durable Loans are approved very quickly. With online applications and minimal documentation, you can often get instant in-principle approval and fund disbursal.

What does ‘No Cost EMI’ mean?

‘No Cost EMI’ is a popular offer where you pay only the total price of the product, divided into EMIs, with no additional interest charged. The interest component is typically subsidised by the manufacturer or the retailer as a discount.