Neha has recently bought a new house and put together an aesthetically pleasing and coordinated design all by herself. Now, she wants to purchase all the required home appliances that would match the vibe of her house. Shelling out a sizeable amount to finance these purchases is slightly difficult for Neha at this point. Therefore, the best idea is to opt for a home appliance loan.
Are you wondering how appliance loans are different from other loan variants? This article answers it all. Keep reading!
Home appliance loans are personal loans that can be availed to purchase new home appliances or replace the old ones with the latest versions. Even though credit cards are also there to serve this purpose, it brings additional challenges too. People tend to overspend, and other fees keep adding up, making it difficult to manage finances.
That’s why you need an appliance loan to know how much you exactly want from the very beginning so that you plan your finances accordingly.
The features and perks available on a specific credit facility generally vary from one lender to another. However, the basic aspects remain pretty much the same. Here are the benefits of a home appliance loan:
One of the most useful features of this particular credit is that the loan can be repaid via easy EMIs, regardless of how much you are borrowing. Most lenders offer flexible repayment terms on such loans. You can choose a repayment tenure as per your convenience and repay the loan conveniently while managing other financial liabilities.
You can expect the disbursal of your personal loan within minutes after completing the application procedure online. Navi offers personal loans of up to Rs. 20 lakh, which involves a completely paperless procedure. On top of that, these home appliance loans do not involve the pledging of any collateral. This makes the process even better for individuals looking for instant money without pledging any asset.
To apply for a home appliance loan at competitive interest rates, download the Navi app.
Despite its unsecured nature, the documentation process hardly takes a few minutes to complete. To avail of Navi’s personal home appliance loans, you only have to submit PAN and Aadhaar details.
To make the most of these features, follow the below-mentioned steps to apply for this type of credit.
Follow these steps to apply for Navi’s personal loan for home appliances:
Such loans allow borrowers to obtain a sizeable amount and meet necessary monetary requirements. However, it is essential to choose the loan amount wisely as that is a deciding factor for your equated monthly instalment amount. You can use Navi’s EMI calculator to choose both repayment tenure and loan amount after assessing your monthly obligations.
Also, to smoothly manage other financial liabilities, make sure to keep the EMIs as low as possible.
Here is a list of things that you can purchase using an appliance loan:
Now that you know what you can purchase with the obtained funds, make sure to meet the required eligibility parameters first to qualify for this loan.
Following is a tabular representation of the eligibility criteria and document requirements for a home appliances loan:
|Age||Between 18 and 65 years|
|Income/ Revenue Source||Self-employed, salaried or pensioner|
|Gap Between 2 Home Appliance Loan Applications||90 days|
Here’s a list of documents required to apply for and get a home appliance loan:
Note that both the eligibility criteria and documents required might vary across different lenders. Any financial institution can as for additional documents and eligibility parameters. Make sure to check all that before availing of the loan.
Even though the loan can be repaid via easy EMIs, you should also check the terms and conditions associated with it. Check if your chosen lender offers a pre-payment facility on your home appliances loan so that you can get rid of the EMI burden once you have managed to save a substantial amount. However, look out for the additional charges as well before you avail of this facility.
Ans: Even though providing a significant amount as a down payment lowers your EMIs and makes the repayment process smoother, you can choose not to make any down payment as well. Some lenders allow borrowers to avail of home appliance loans with zero down payment. In that case, you need to choose the repayment tenure wisely to keep your EMIs affordable.
Ans: Banks tend to charge a processing fee for personal loans; this fee is related to administration expenses. The exact percentage varies from lender to lender. Usually, the home appliance loan processing fee can range between 0.5% and 2.5%.
Ans: Foreclosure refers to repaying your loan before the stipulated tenure ends. Foreclosing a loan helps borrowers save on interest charges. However, banks charge between 2% and 4% as foreclosure charges. Make sure to check these charges before you take such decisions.
Ans: The Repo rate is the interest rate that the Reserve Bank of India (RBI) charges while lending money to commercial banks. A rise in repo rate will subsequently lead to increased interest rates on home appliance loans.
Ans: The debt-to-income ratio shows the proportion of your monthly dues to your monthly earnings. If this ratio is on the lower side, it indicates that a borrower has a lower risk of defaulting on loan repayment. Therefore, lenders often charge minimal interest on personal loans if borrowers have a low debt-to-income ratio.
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