Getting a consumer durable loan is one of the best ways to get the finances required for purchasing household appliances or electronic items. If you are looking to get a consumer durable loan then here is a list of questions you should ask the lender to make the right choice.
What is the loan amount you are eligible to get?
Typically, a consumer durable loan amount can range from Rs. 10,000-Rs. 10 lakhs depending on the lender you are applying with and your creditworthiness. Asking this question is important as it can help you plan your purchase without having to worry about the finances. On successful submission of the KYC documents, your credit profile is assessed and the loan is approved.
Ideally, you should always opt for a loan amount you require as an additional amount can increase your burden and also the EMI you would have to pay each month. Besides, it is also important to ensure that your monthly EMI does not exceed 50% of your salary. You can also calculate your loan eligibility using an EMI calculator that helps you get an estimate of the amount you would have to pay as EMI each month.
What is the interest rate offered?
Since consumer durable is an unsecured form of credit, the interest rate for this type of loan is usually higher in comparison to secured loans. The interest rates for this type of loan can vary from lender to lender. However, Credit Fair offers you consumer durable loans at ZERO COST EMIs and low processing fee. In case of other lenders, the interest rate varies depending on factors such as your age, income, employment status, existing liabilities and other factors. Your credit score too plays an important role as a low score attracts a high rate of interest, whereas a high credit score helps you get the loan at low interest rate. To get the loan at the best interest rate, it is important that you have a minimum credit score of 600. Also, with Credit Fair you can get a loan upto Rs. 10 lakhs with a score of 600 or ZERO credit history.
What is the loan tenure?
Ensure that you opt for a loan tenure that makes it easy for you to comfortably repay off the EMIs. Additionally, the tenure also impacts your EMI outflow and short tenure means that you will have to pay a high EMI each month, whereas, longer tenure implies that you will have to pay less EMI.
What are documents required?
Getting a consumer durable loan does not require you to do a lot of documentation as you are only required to submit documents like one address proof, identity proof, salary slip, photograph and bank statement. The requirement of the documents may vary from lender to lender and also depend on the loan amount you wish to get.
What are the repayment options?
Opting for a consumer durable with flexible repayment option makes it easy for you to repay the loan as and when you have funds at your disposal. Lenders in India have a lock-in period, prepayment penalty and foreclosure charges that you have to bear if you want to repay the loan before the end of the tenure. This is an important parameter you should look at as different lenders have different charges that you need to check on when opting for the loan.
How is the EMI calculation done?
The consumer loan EMI calculation is done on the basis of the:
Rate of Interest
EMI = [P x R x (1+R)^N]/[(1+R)^N-1
In the above formula, P is the principal loan amount, R is the rate of interest and N is the loan tenure
What are the products you can buy?
Using a consumer durable loan, you can buy the below products:
- Home theatre
- Mobile phone
- Washing machine
Getting a consumer durable loan in India is simple if you apply with Credit Fair. We at Credit Fair offer you ZERO COST EMI consumer loans at low processing fee and ZERO prepayment penalty. To apply for consumer durable loan with us, click here https://creditfair.in/customer