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

Upgrading your home’s residential setup can be rewarding, even with rising living standards. With a Personal Loan, you can improve your home without straining your monthly budget or dipping into your savings. Whether you want to install an AI-enabled air conditioner or build a modular kitchen with smart features, a Personal Loan can help. It allows you to spread the cost over manageable EMI payments.

For first-time borrowers, the main question often is how to use a Personal Loan efficiently. Let’s explore this in this blog.

Personal Loan Uses: Upgrading Your Furniture and Appliances

A Personal Loan gives you the freedom to shop across various categories, styles, and brands for furniture or home appliances. Here are some practical ways to use it for your home.

1. Home Renovation and Living Space Upgrade

A full renovation is not always necessary. Most homeowners focus on aesthetic and practical upgrades, such as new furniture, lighting, modular kitchens, storage solutions, or energy-efficient appliances. A Personal Loan can help cover these combined costs through a single financing option.

Typical expenses covered

• Living room furniture and seating
• Modular kitchens and cabinets
• Appliances such as air conditioners and refrigerators

2. Living Room Furniture on EMI

Living rooms define comfort and create the first impression of your home. Furniture purchases for this space are often expensive and tailored to specific layouts. A Personal Loan allows you to buy furniture without relying on store-specific financing schemes.

Popular living room furniture options

• L-shaped sofas for larger living rooms
• Sofa-cum-beds for compact homes
• Fabric sofas in various colours and materials
• Recliners and centre tables

Engineered wood and solid wood options cater to different budgets and durability needs.

3. Bedroom Furniture for Comfort and Storage

Bedroom furniture provides a balance of comfort, storage, and personal aesthetic preference. Purchases of this nature are often delayed due to cost; however, a Personal Loan allows you to spread the expense while opting for quality materials.

Common bedroom furniture purchases

• Beds with storage drawers
• Wardrobes with shelves and mirrors
• Side tables and chairs

The common preferred finishes are solid wood, engineered wood, and mahogany.

4. Dining Room Furniture and Dining Sets

The furniture in the dining room creates a comfortable and inviting space where the family gathers. Choosing the right dining set depends on seating capacity and available space. A Personal Loan allows you to purchase dining room furniture without waiting for discounts or coupon codes.

Dining furniture options

• Four-seater dining sets for small spaces
• Six or eight-seater tables for larger houses
• Solid wood or engineered wood tables
• Chairs matching the room colour and style

5. Kitchen Appliances and Modular Kitchens 

The modern kitchen requires efficient and hygienic appliances. However, such appliances are often expensive. A Personal Loan allows you to make these large purchases without affecting your monthly cash flow.

Appliances commonly financed

• Chimneys and dishwashers
• Built-in ovens and microwaves
• Modern kitchens with storage
• Energy-efficient refrigerators

Read More: Why Take a Personal Loan for Home Interior Redesigning

6. Furniture for Work From Home (WFH) Setup

Remote work has made home office furniture essential rather than optional. A Personal Loan helps create a productive workspace without compromising comfort.

WFH essentials

• Adjustable chairs and tables
• Storage shelves and drawers
• Additional monitors and accessories
• Proper lighting solutions

7. Emergency Replacement of Appliances

Sudden breakdowns of home appliances can cause significant strain on your monthly budget. Immediate replacement often becomes unavoidable. A Personal Loan ensures quick access to money during such emergencies.

Common emergency replacements

• Washing machines
• Water heaters
• Refrigerators
• Air conditioners

The loan amount is credited directly to your bank account, ensuring a fast purchase and timely delivery.

8. Setting Up Furniture and Appliances After Moving Homes

Relocating to a new city often requires purchasing multiple household items at once. Instead of paying entirely in cash, a Personal Loan allows you to set up your home immediately.

Typical purchases after moving

• Beds and wardrobes
• Sofas and dining tables
• Essential appliances
• Storage furniture

The instant approval process is a major advantage. It enables you to buy the necessary items without reducing your savings or waiting for your next month’s salary. You can conveniently repay the loan in EMIs, making it an ideal option for salaried individuals with a good credit history.

Smart Tips for Managing Your Personal 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 ease of EMIs can tempt individuals to overspend and accumulate debt, leading to financial strain if not managed responsibly. The amount you borrow should depend on your needs and ability to repay, not on the maximum loan possible.
2. Automate Payments: Setting up auto-debit ensures that you never miss an EMI and helps prevent extending your loan repayment tenure. You can also pay these instalments manually through net banking if preferred.
3. Keep Your Credit Fit: Pay your bills on time to maintain or boost your CIBIL score.
4. Manage Your Money Well: Create a monthly budget tracker to ensure you don’t exceed your spending limit.

These small yet practical measures will help you repay your Personal Loan smoothly and without stress.

To Conclude

With easy-to-get personal loans, you can easily improve your lifestyle, comfort, and home design without straining your budget. This flexible financing is both convenient and cost-effective, whether you are redecorating your home or replacing energy-efficient appliances. It can also help you set up your own home office without straining your budget.

Looking for a Personal Loan to upgrade your home? Poonawalla Fincorp offers loans up to ₹5 lakh for purchasing furniture on EMI without requiring a credit card.

FAQs

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

You must be an Indian citizen. Also, you need to be between the ages of 21 and 60, have a stable income and employment, and have a good credit score.

What is needed in the application for a Personal Loan?

Simple legal documents such as an Aadhaar card, a PAN card, income proof (salary slips or ITR), employment proof, and bank account statements for 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 to 84 months that suits your monthly income.

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. 

Do interest rates vary based on loan amount?

Yes, interest rates vary based on your credit profile, income, and loan amount, not just the value of the purchase of furniture or a home appliance.

What are the eligibilty documents required for getting furniture on EMI?

Eligibility for EMI typically involves providing KYC documents, proof of address, and proof of income.