Top Benefits of Buying a Refrigerator on EMI with a Consumer Durable Loan

The biggest benefit of buying a refrigerator with a Consumer Durable Loan is that it breaks the cost into several manageable EMIs and eliminates the need to pay the entire amount upfront. It helps you buy this essential household appliance with ease, without straining your budget. Keep reading this blog to learn in detail all the important benefits of using a Consumer Durable Loan to fund the purchase of a refrigerator.

Key Benefits of Buying a Refrigerator on EMI
 

Opting for a Consumer Durable Loan to finance your refrigerator purchase extends beyond simple affordability. It provides several strategic advantages for managing your personal finances, like:

•    Financial Flexibility: A highlight benefit is that you don’t have to pay the whole amount at the start. The cost is split into low, fixed Equated Monthly Instalments (EMIs) that you can easily adjust against your monthly budget.

•    Immediate Ownership: Despite not paying the entire amount upfront, you get to take home your brand-new refrigerator immediately. The loan lets you enjoy your appliance while giving you the liberty to manage repayment at a steady, planned pace.

•    On-the-Spot Financing: Consumer durable loans can be availed at the point of sale itself, meaning there’s no saving up of cash or pre-application required from your end at all. The convenience makes it an ideal financing option. 

•    Preserved Cash Flow: No need to liquidate savings that you’ve held on to for years, or break into your emergency fund. The loan helps preserve your liquid assets for other priorities and emergencies.

•    Upgrading to Improved Models: Financing allows you to purchase better refrigerator models that you otherwise may not have been able to afford. You can opt for a higher-end energy-efficient refrigerator with better features, which typically translates into saving money on electricity bills in the long run.

•    No Collateral: Consumer durable loans are unsecured, which means there’s no need to mortgage any assets such as gold, property, or even the refrigerator as security. The credit is given solely on the basis of your income, credit history, and repayment capacity.

•    Creates a Positive Credit Record: The process of taking on a loan and paying it off regularly helps boost your credit score without any additional effort from your end. Over time, this boosts your creditworthiness, increasing your chances of approval for credit in the long run.

•    Hassle-Free Application Process: All major lenders currently provide a fully digital application process. With minimal paperwork and benefits such as online KYC verification, you can make the application from anywhere with approval within minutes!

•    Flexible Repayment Options: Lenders provide various repayment tenures, usually between 6 and 24 months. This makes it easy for you to select an EMI amount and loan tenure that perfectly suits your monthly budget.

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

Applying for a Consumer Durable Loan for a Refrigerator

The process of applying for a Consumer Durable Loan is simple and designed for customer convenience. Several lenders have enrolled retailers who offer consumer durable loans on a range of products. At the point of sale, inform the retailer employee that you would like to opt for the EMI payment option via a Consumer Durable Loan. Then:

●    Eligibility Criteria: Verify the lender’s eligibility conditions, which typically include minimum age (generally 21 years), nationality (resident Indian), and income status (salaried or self-employed).

●    Submit Documents: Keep soft copies of your basic KYC documents and income proof (salary slips, bank statements) handy.

●    Interest Rate: Your refrigerator loan’s total cost is influenced by the interest rate. If you want to get the best offer on interest, compare rates from various NBFCs and banks beforehand, and visit retailers who have partnered with your lender of choice.

●    Loan Tenure: Pick a tenure that aligns well with your monthly income and expenditures. The longer the tenure, the smaller the EMI but the more total interest paid. On the other hand, a shorter tenure equates to higher EMIs and less total interest paid.

●    Related Fees: Take note of upfront processing fees, documentation fees, and any possible late payment or foreclosure penalties.

●    Loan Approval: Once your loan is approved, you can take home your brand new refrigerator!

Also Read: Why Should You Consider Taking a Loan for TV?

To Conclude

Buying a refrigerator with a Consumer Durable Loan is a prudent decision to manage your finances. You have the advantage of immediately acquiring a refrigerator, while you gradually repay the loan with easy EMIs and avoid expending your hard-earned savings in one outgo.

Poonawalla Fincorp has a range of partner retailers where you can avail of a Consumer Durable Loan with attractive interest rates and flexible terms. Explore more on the official website.

Frequently Asked Questions 

What is the main difference between a Consumer Durable Loan and a credit card EMI?
A Consumer Durable Loan is a specific financing product for purchasing appliances, whereas a credit card EMI converts a purchase into instalments using your card’s pre-approved credit limit. A loan does not block your credit card limit and sometimes offers more competitive interest rates.

Is a down payment required when buying a refrigerator on EMI?
This depends on the lender’s policy and the cost of the refrigerator. Some schemes offer 100% financing, meaning no down payment is needed. Others may require a small upfront payment.

What is the typical tenure for a refrigerator loan?
The repayment tenure for a Consumer Durable Loan usually ranges from 6 months to 24 months, giving you the flexibility to choose a plan that suits your financial situation.

Can I prepay my loan before the tenure ends?
Yes, most lenders allow you to prepay your loan. However, it’s important to check if any foreclosure charges or prepayment penalties are applicable as per the loan agreement.

Can I use this loan to buy other appliances at the same time?
Yes. A Consumer Durable Loan is a versatile financing option. Depending on the approved loan amount, you can often use it to purchase multiple appliances from partner stores, such as a refrigerator, a washing machine, and a microwave oven, all under a single loan.