India’s Rising Trend: Personal Loans and Credit for Consumer Goods

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As per the most recent reports published by Andromeda Loans, the FY22-23 experienced a jump in personal loan disbursements by almost 63% compared to the previous year. 

Most borrowers utilised the loan amount either to renovate their homes or buy a household commodity. The very reason they got inclined towards these offerings is because of their fairly-easy EMI options. 

In this guide, you will see the topmost reasons behind applying for a consumer durable loan. Also, you will come across certain do’s and don’ts when it comes to managing your repayment course.  

How Consumer Durable Loans Got Sold Last Year?

According to some latest reports, people in metro cities across India have increased their loan appetite by almost Rs. 4 Lakhs on average in the previous year. In addition, certain tier-2 cities like Ahmedabad and Indore also saw a growth in the number of big-ticket loan seekers. 

As various new lenders stepped in with more flexible and cost-effective deals, borrowers gained more confidence in availing their offers. Such behaviour is prominently got reflected in recent surveys organised by the Financial Express. These results were quite amusing as more than 9% of Indians decided to go for a personal loan to fund their long-awaited vacations. 

So, the intentions are quite clear. People these days look for low-interest loan offers that allow reasonable repayment terms and certain personalisation options like pre-closure, balance transfer, etc. 

Moving on, you will learn why personal loan requirements are gradually soaring. 

Why Consumer Durable Loans are Popular? 

The increased number of loan requests after the pandemic’s end clearly speaks about the quick recovery of most citizens’ financial conditions. Moreover, upon analysing this new behaviour one can notice an improved awareness among the masses. 

Majority of the Indians nowadays prefer accommodating their daily expenses within a set budget. Thus, they get extremely relieved to buy essentials on affordable EMIs instead of simply delaying their plans owing to a lack of liquid funds. 

Besides this primary cause, here are other reasons as well that may make you seem grabbing a consumer durable loan reasonable:

• No End Restrictions

The amount credited by your lender can be used anywhere, no questions asked.

• Limitless Financing

You may consistently opt for similar financing options from the same lender or any other institution as long as you are making timely repayments.

• Dynamic Tenure

Usually, a prolonged tenure of 36 months is awarded to the borrower to pay back the outstanding sum. However, you may also select the minimum tenure, i.e., 3 months. Thus, you remain in control of your finances throughout the loan term.

• Easy Approval

Consumer durable loan applicants have gotten used to high approval rates. Once the lender agrees to your proposal, the requested amount gets credited within a few minutes.

• Attractive Offers

Many lenders these days sell personal loan products that do not require the customers to pay additional interest. Nevertheless, the ones that come with applicable interest are also highly cost-effective. 

Who is Eligible for Consumer Durable Loans?

Both existing and new customers of a lender are eligible for these short-term loans. However, you must have a constant income source and adequate income-proof documents while coming up with the request. 

How to Apply for a Consumer Durable Loan?

The application method for a consumer durable loan has never been this easier before. Before you begin following the below-mentioned steps, download the Credmudra app. Then execute these:

Step 1: Enter your mobile number, submit the KYC documents and complete the registration. 

Step 2: Adjust the loan terms such as amount, tenure, etc. and proceed to apply.

Step 3: Next up, enter your PAN card number, email address, employment type, gross annual income and bank account details. 

Step 4: Fill up your personal information and address details to move forward with the application. 

Step 5: Before submitting the application, you will have to mention the total amount of EMIs you are currently serving and if you are planning to opt for a credit card or not. 

Upon successful completion of all these steps, our representative will contact you and guide you through the next steps. 

Things to Remember While Purchasing a Personal Loan

While relying on a personal loan to meet your daily expenses ensure to:

• Check the Credmudra suggestions thoroughly to end up choosing one of the best possible options.
• Estimate the overall payable interest.
• Opt for partial prepayments whenever possible.

Contrarily, here are the clear-cut don’ts for all the short-duration loan seekers:

• Do not extend the loan tenure unnecessarily to avoid paying more interest. 
• Consider avoiding additional expenses for the time being if you are facing difficulty in managing EMIs.
• Do not finalise a deal without verifying the reputation of a lender. 

All these pointers have to be borne in mind to manage loan repayment smartly. 

We hope the idea about the benefits of opting for a consumer durable loan is clarified by now. No matter how much critical the situation gets, it is always important for you to check the terms carefully before entering a credit relationship. Credmudra will guide you in this regard so that you can follow the precautions properly. 

FAQs on Consumer Durable Loan

1. When to consider a consumer durable loan?

If you haven’t qualified for a low-interest credit card then consider depending on a consumer durable loan. These plans do not force you to add any collateral.   

2. Can you make a big purchase using a personal loan amount?

Yes, you may buy any big-ticket lifestyle products like supermarket items, electronic gadgets like refrigerators, water heaters, etc. using the loan amount. 

3. What are the documents needed for a consumer durable loan?

The documentation needs are very basic. All you must present to the lender is your Aadhaar card (or any other ID proof document) and a valid job ID card or income proof document.