हिंदी में पढ़े
Consumer Durable Loan Interest Rates
The interest rate offered on a consumer durable loan usually starts from 10% p.a. and can go up to 25-30% p.a. The cost of the item being purchased (i.e., loan amount) and the applicant’s credit profile such as their credit score, employment type, tenure, etc. are some of the factors that may influence the interest rate charged by a lender.
Features of Consumer Durable Loan
Some key features of a consumer durable loan are as follows:
- Interest Rate: Usually starts from 10% p.a
- Loan Amount: Rs. 5,000 – Rs. 25 lakh
- LTV Ratio: Usually up to 100% financing
- No Cost EMI: Available with select lenders
- Tenure: Up to 6 years (72 months)
- Loan Type: Secured and unsecured
- Minimal documentation
- Quick disbursals
Consumer Durable Loan Options Offered by Various Banks/NBFCs
1. HDFC Bank Consumer Durable Loan (HDFC EASYEMI on Consumer Loans)
| Minimum Loan Amount | Rs. 10,000 (under HDFC EASYEMI on Consumer Loans facility) |
| Maximum Loan Amount | Under HDFC EASYEMI on Consumer Loans facility:
Consumer Durables: Rs. 5 Lakh |
| Loan-to-Value (LTV) Ratio | 100% financing |
| No-cost EMI facility | Available under HDFC EASYEMI on Consumer Loans facility |
| Tenure | 6 months – 4 years (for HDFC EASYEMI on Consumer Loans facility) 3 months – 2 years (for HDFC Bank No Swipe EMI facility) |
| Part-prepayment/ Foreclosure Charges | Under HDFC EASYEMI on Consumer Loans facility:
Partial prepayment: Not allowed |
2. ICICI Bank Consumer Durable Loan (ICICI Bank Consumer EMI)
| Interest Rate | 9.95% – 28.64% p.a. |
| Loan-to-Value (LTV) Ratio | 100% financing |
| Prepayment/Foreclosure Charges | 5% of outstanding loan amount + applicable taxes |
3. Kotak Mahindra Bank Consumer Durable Loan
| Loan Amount | Up to Rs. 15 Lakh under Kotak Smart EMI facility |
| Loan-to-Value (LTV) Ratio | Under Kotak Smart EMI facility: 100% financing or up to 30% of the product price as down-payment Under Kotak InstaCRED facility: 100% financing |
| No-cost EMI facility | Available under Kotak Smart EMI facility |
| Tenure | 3 months – 1 year (under Kotak Smart EMI facility) 3 – 18 months (under Kotak InstaCRED facility) |
| Part-prepayment/ Foreclosure Charges | Partial prepayment: Not allowed Foreclosure charges: 4% of outstanding loan amount + applicable taxes (mandatory to pay first 3 EMIs) |
4. IndusInd Bank Consumer Durable Loan (Consumer Durable Finance)
| Interest Rate | 22.15% – 22.25% p.a. |
| Loan Amount | Up to Rs. 20,000 |
| Loan-to-Value (LTV) Ratio | As applicable to the product |
| Tenure | 6 months – 1 year |
5. Indian Overseas Bank Consumer Durable Loan
| Interest Rate | 11.85% – 14.40% p.a. |
| Loan Amount | Under Indian Overseas Bank Consumer Durable Loan:
10 times the gross monthly salary of the applicant or 90% of the article cost, whichever is less. Up to Rs. 5 Lakh of the income of the applicant’s spouse can be considered for the determining the maximum eligible loan amount for the applicant. Under Indian Overseas Elite Consumer Durable Loan: Up to Rs. 25 Lakh based on the repayment capacity of the loan applicant |
| Loan-to-Value (LTV) Ratio | 90% of the cost of the article(s) to be purchased |
| Tenure | 5 years (under Consumer Durable Loan facility) 1 – 6 years (under Elite Consumer Durable Loan facility) |
| Security | Under IndusInd Bank Consumer Durable Loan:
Hypothecation is created on the article purchased out of the loan. Additionally, recovery undertaking or salary routing or a suitable third-party guarantee should also be provided. Under IndusInd Bank Elite Consumer Durable Loan: For loans of up to Rs. 15 Lakh: Hypothecation of the assets created is considered as the security. For loans above Rs. 15 Lakh: In addition to the hypothecation of the assets created, the lender would require third-party guarantee/collateral as security. |
| Prepayment/Foreclosure Charges | 5% of outstanding amount + applicable taxes (under IndusInd Bank Consumer Durable Loan) |
6. IDFC FIRST Bank Consumer Durable Loan
| Interest Rate | 10.05% p.a. onwards |
| Loan Amount | Rs. 5,000 – Rs. 8 lakh |
| Loan-to-Value (LTV) Ratio | Depends on the product selected, schemes available and the eligibility criteria |
| No-cost EMI facility | Available |
| Tenure | 3 months – 3 years |
| Part-prepayment/ Foreclosure Charges | Partial prepayment: Not allowed Foreclosure charges: Up to 5% of principal outstanding + applicable taxes |
7. Bank of Maharashtra Consumer Durable Loan
| Interest Rate | 13.20% p.a. |
| Loan Amount | Up to Rs. 1.5 lakh
Salaried: 6 times the gross pay of the applicant |
| Loan-to-Value (LTV) Ratio | 75% of the cost of the article(s) to be purchased |
| Tenure | Up to 5 years or residual service, whichever is less |
| Security | Hypothecation of consumer durables purchased |
Eligibility Criteria of Consumer Durable Loans
The eligibility criteria of consumer durable loans can vary from one lender to another due to their varying credit risk policies. It can also differ as per the loan variant, product and occupation profile of the applicant. Here are some of the consumer loan eligibility criteria used by most lenders:
- Age: 18 – 75 years
- Minimum Salary: Ranges from Rs. 15,000 to Rs. 75,000 per month, depending on lenders
- Minimum Annual Income (for self-employed applicants): Ranges from Rs. 60,000 to Rs. 3 lakh p.a., depending on lenders.
- Employment Stability: At least 1-2 years of work experience with some lenders requiring longer work experience.
- Business Continuity (for self-employed applicants): 1-3 years of business continuity with some lenders requiring longer period of business continuity.
- Employment Type: Usually salaried individuals and self-employed professionals/ non-professionals with some lenders extending such loans to pensioners.
Documents Required to Avail Consumer Durable Loans
Lenders usually do not require any documentation from their pre-approved customers. However, in case of other applicants for consumer durable loans, lenders usually require their PAN and other documents as proof of their identity, address and income.