8 Effective Ways to Use a Personal Loan for Furniture and Appliances

Upgrading your home setup can feel like a financial stretch, given the rising cost of living. However, with a personal loan, you can upgrade your home without disturbing your monthly budget or sacrificing your savings.

Home improvement is one of the reasons why the demand for loans among individuals is increasing. Whether you want to upgrade to an AI-enabled air conditioner or build a modular kitchen with smart features, with a personal or consumer durable loan, you can spread the cost over manageable EMI payments.

However, the main question that often comes to mind for first-time borrowers is how they can use a personal loan efficiently. Let's understand with this blog.

Uses of a Personal Loan for Home Appliances and Furniture

Here's how you can use a Personal Loan at a reasonable interest rate for your home:

1. Home Renovation

Redesigning your entire home doesn't necessarily mean a complete home renovation, which includes structural changes, plumbing and electrical upgrades, and furniture upgrades in every room. If you want to undertake a cosmetic renovation, such as repainting walls, upgrading lighting, replacing old furniture, and adding modern home appliances, a Personal Loan for home renovation can help you achieve your dream home. These loans enable you to pay for all home improvements at once, and you can pay the monthly EMI payment as per your convenience.

Maximum Loan Amount

Rs. 5 - 10 Lakhs (for Cosmetic Renovation) and Rs. 15 lakh + (for Complete Home Renovation)

2. Home Furniture Upgrades

With a Personal Loan, you can upgrade your home with furniture that reflects your style. Like, if you’re drawn to a beachy or boho aesthetic, you might want light-toned wood furniture, rattan accents, and breezy fabrics that bring a relaxed, coastal vibe to your space. On the other hand, if you’re someone who values efficiency and modern convenience, you’d likely prefer smart, multifunctional pieces, like a height-adjustable work desk or a dining table that expands when guests arrive.

Maximum Loan Amount

Rs. 3-7 Lakhs (depending on your design preference and furniture quality)

3. Custom-Made Furniture

Readymade furniture might not necessarily suit the home layout or your taste, and custom-made furniture is expensive (around 20-100%) than readymade items. A Personal Loan for home improvement can you help you get the ordered furniture that is made to their specifications. Personal loans are easily available with flexible EMI options, zero or minimal down payment, and low processing fees.

Maximum Loan Amount

Rs. 50,000 to 4 Lakhs (Depending upon the customisation, and number of rooms being furnished)

4. New Kitchen Appliances

Modern kitchen appliances are costly, but they can make everyday life far more convenient and efficient. For instance, a dishwasher can save you hours of manual cleaning every week, and a modern chimney can make your kitchen smoke-free, odour-free, and cleaner with minimal effort. At your convenience, you can avail of a Consumer Durable Loan of up to Rs. 5 lakhs from Poonawalla Fincorp for a loan tenure of approximately 2 years. This will enable you to manage all your kitchen upgrades simultaneously while repaying comfortably through flexible EMIs.

Maximum Loan Amount

Rs. 80,000 - Rs. 3.5 Lakhs

Read More: How to Use Consumer Durable Loan For a Kitchen Makeover?

5. Preparing Your Home For a New Baby

Welcoming a new baby marks a new chapter in every couple's lives, but it always comes with expenses. From setting up a baby room with a crib to giving it a cosmetic makeover and purchasing closet storage units and other essential baby items, the list can be long. In such cases, you can use a Personal Loan to cover the heavy expenses.

Maximum Loan Amount

Rs. 50,000 - Rs. 5 Lakhs (depending on your needs)

6. Work From Home Office Setup

A WFH employee should invest in advanced electronics and ergonomic furniture, like an adjustable chair or a sit-stand desk, storage units, better lighting, or a secondary monitor for comfort and productivity. With a Personal Loan, you can purchase all essential furniture and gadgets upfront and repay through flexible EMIs with low processing fees.

Maximum Loan Amount

Rs. 50,000 to Rs. 3 Lakhs (depending upon the setup)

7. Emergency Replacement

Sometimes, essential appliances stop working without warning, like a refrigerator breaking down in the middle of summer or a washing machine or heater failing when you need it most. Considering monthly budget restrictions, it becomes challenging to purchase relatively expensive home appliances. In such cases, you can opt for a Consumer Durable Loan. Even if, due to some emergency, a part of your home needs to be renovated, a personal loan for home renovation can help you manage the expenses.

Maximum Loan Amount

Rs. 50,000 - Rs. 5 Lakhs + (depending on the damage)

8. Post Move Home Setup

Moving to a new city or state often means buying multiple essential appliances and furniture at once. For instance, a washing machine, a refrigerator, a bed, a dining table set, and other electronics and furnishing elements. A personal loan provides quick funds to make your new house fully functional without financial stress.

Maximum Loan Amount

Rs. 1 Lakhs to Rs. 6 Lakhs

The instant approval is the best part, allowing you to purchase the required appliance immediately without dipping into your savings or waiting for your next month's salary. You can pay the EMIs monthly, a perfect option for salaried individuals with a good credit history.

Read More: How to Build Your Credit Score Using Consumer Durable Loan

Clever Tips on How to Deal With Your Loan

Here are a few simple tips to help you get your loan approved and streamline repayment:

1. Borrow Only What You Need: Do not over-borrow, even if EMIs are affordable. The amount you borrow should depend on your needs and ability to repay, not on the maximum loan possible.

2. Automate Payments:  Auto-debit is required so that there are no missed EMIs. This will also prevent you from stretching your loan repayment tenure. You can even manually pay out these instalments through net banking.

3. Keep Your Credit Fit: Pay your bills on time to boost your CIBIL score.

4. Manage Your Money: Create a budget tracker every month to ensure you don’t exceed your spending limit.

These are little but practical measures, and will help you make repayment without hitches.

To Conclude

With easy-to-get personal loans and consumer durable loans, you can easily improve your lifestyle, comfort, and home design without straining your budget. This flexible financing will be convenient and cost-effective whether you are redecorating the inside, replacing energy-saving appliances, or building your own home office.

Poonawalla Fincorp offers flexible personal loans to suit every applicant's financial health. Available at competitive interest rates and minimal processing charges, we are your partner who helps you build your dream home without any financial burden.

FAQs

How do you qualify to take a loan to purchase home appliances?

You are required to be an Indian citizen between the ages of 21 and 60 years with a stable income and a good credit score.

What is needed in the application for a personal loan?

Simple legal documents like Aadhaar card, PAN card, income (salary slips or ITR), and bank account statement of the past 3-6 months are required. Submit the self-attested copies of all documents for hassle-free approval.

What are the options for repayment?

Customise your loan repayment schedule with flexible EMI plans tailored to your income and repayment capacity. Select a tenure between 12 months and 5 years (60 months) that suits you.

Are self-employed people eligible for such a loan?

Yes, a home appliances loan can be applied for by both the salaried and self-employed people who satisfy the eligibility criteria. You can check the consumer durable loan eligibility on the Poonawalla Fincorp website for complete information.