In the year 2017, a report was published by the Finance Ministry stating that nearly 11,469 non-banking financial companies (NBFCs) are registered with the Reserve Bank of India. Also, more than 82% of them have been labeled ‘risky’ by the Ministry. These NBFCs are typically obligated to appoint a principal officer to report all doubtful cash transactions of more than Rs.10 lakh to the Financial Intelligence Unit. Unfortunately, investigations found out how this rule of thumb was skipped. Many times, the NBFCs have been put under scanner by the Income Tax department for escaping complete transparency of the transactions.
An estimate was unveiled about how NBFCs may grab almost 50% of consumer durables credit by FY21.
So, let’s have a sight of what consumer durable loan actually is?
The count of consumer durable loan borrowers has grown to 83% which is almost 1.95 crores in the last 1 year. This is quite whopping in number, with a credit segment to reach Rs 2 trillion, changed from the current 32%. It has the fastest expansion rate among all retail loans, followed by credit cards and personal loans.
Consumer durable loans are essentially the financing option available for the household. This credit option helps to make purchase appliances (geysers, microwaves, etc), electronics (TV, washing machines, refrigerators, etc.) and any expensive consumer durables. Consumer loans are unsecured which is why it is backed by an individual’s repayment history and credit score.
Sometimes, it is difficult to make a one-shot payment, so people choose to take a loan up and pay installments. There are different loan options that offer finance for the purchase of consumer durables in India. Consumer Durable Loans in India are spaced over a diverse spectrum of options. Let us highlight some of the top consumer durable loan schemes:
Best Consumer Durable Loan Schemes are as below:
1. Bajaj Finserv Durable Finance
Bajaj Finserv is considered to be the best consumer durable loan. It offers upto 5 lacs for buying consumer durable items. Consumer durable loans bestow upon the user the privilege to pay back the principal amount only. There’s no interest charged in this case. The borrower only pays the basic processing fee and overall total cost of the purchase into a down payment and monthly installments. No hidden charges are payable with this loan scheme. The bank does not levy any fee on foreclosure and the like. This loan amount comes with pre-approved authorization and minimum documents.
2. Tata Capital Consumer Durable Loans
Tata capital consumer durable scheme is sponsored by Tata Capital. It offers loan amount for the purchase of all household durables at a low rate of interest. The pre-approved loan covers TV sets, air conditioners, washing machines, dishwashers, dryers, computers, home theatres, etc. The Tata scheme has an extended credit limit and no chances of hidden charges are applied too. The credit cardholders have sufficient flexibility to do with the credit offered. The threshold of loan amount is upto 1.5lacs for a time span of 24 months. The few USPs of Tata Capital Loan are instant approval, easy processing, and minimum documentation.
3. HDFC Consumer Durable Loan
HDFC Consumer Durable loan ensures that your house looks the best and is not neglected due to a financial crunch. Purchase of latest gadgets is made possible with HDFC Consumer Durable Loan. This plan offers 100% financing with long repayment schedules, which could be as long as 36 months here. The scheme offers up to 100% financing with long repayment tenures of up to 36 months. The amount that can be sanctioned is about 15 lacs. The plan includes TV, refrigerators, computers, mobile phones, cameras etc. The installment amount will be quite long over the long tenure. The clear pricing and calculations are the USPs.
4. Dena Consumer Durable Loan
Dena Consumer loan allows the prospective users to buy the best if all household durables in the most effective manner. Now, you have the chance to transform your house into the comfy most location of all times. All expensive appliances and electronics are covered under the Dena Consumer durable loan. 1 lac is the limit spread over a tenure of 36 months. The prominent benefits of this scheme are low interest and processing fees, small payments etc.
5. Home Credit Consumer Durable Loan
HomeCredit is the 5th top rated consumer durable loan that helps you design your comfortable home. It is the easiest and fastest way to obtain loans for all your product requirements. They not only make it easily accessible for all consumer durables ranging from Mobile Phones, Laptops, Home Appliances, Electronics, and Two Wheeler but also allow immediate disbursement. The loans are provided at low-interest rates and minimal documentation. Visit your nearest outlet now for a pocket-friendly loan!
To sum up, Indian credit companies have some of the best consumer durable loan options. The basic idea is to pick the most suitable consumer durable loan option that includes all the consumer durables of most brands under its sleeve.
Also Read : Consumer Durable Loan- Adding Luxury to Life