Apply for Personal Loan for Home Appliances: Benefits, Features and Interest Rates
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 sizable 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. A home appliance loan is a personal loan that you could utilise to buy home appliances.
Why Apply for a Home Appliance Loan?
Home appliance loans are personal loans that can be availed of 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.
Home Appliance Loan Interest Rates
Refer to the table below to check the latest interest rates on home appliance loans:
| Banks/NBFCs | Interest Rate (p.a.) | Processing Fee |
| Navi Personal Loan | 9.90% onward | Check with the lender |
| HDFC | 10.50% onward | Up to 2.5% |
| Yes Bank | 13.99% onward | Up to 2.5% |
| Kotak Mahindra | 10.25% onward | Up to 2.5% |
| Axis Bank | 12.50% onward | Check with the lender |
| IndusInd Bank | 11% onward | 2.5% and above |
| IDFC FIRST | 12% onward | Up to 3.5% |
| Home Credit | 19% onward | Up to 5% |
| Aditya Birla Capital | 14% onward | Up to 2% |
| IIFL | 24% | 2% onward |
Important: This table is for educational purposes only and the final rate offered is solely at the concerned lender’s discretion. Navi doesn’t take responsibility for any interest rate changes that may occur in the due course of time.
Features and Benefits of Home Appliance Loan
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:
- Flexible EMIs
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.
- Instant Loan Approval
You can expect the disbursal of your personal loan within a short span of time once your loan is approved. Home appliance loans are unsecured loans, meaning you don’t have to pledge collateral. This automatically speeds up the loan disbursal process.
To apply for a home appliance loan up to Rs.20 lakh at competitive interest rates, download the Navi app.
- Minimal Documentation
Instant cash loans are best known for minimal document requirements. For instance, you just need your PAN card to avail of an instant personal loan for a home appliance purchase.
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:
Step 1: Download the Navi App
Step 2: Register with your mobile number
Step 3: Enter your personal details, including monthly income, company name, etc.
Step 4: Provide loan details and tenure
Step 5: Select loan amount and tenure
Step 6: Provide your bank details
If you’re eligible, the loan amount will be disbursed into your account within a few minutes.
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 an online EMI calculator to choose both repayment tenure and loan amount to assess your monthly obligations.
Also, to smoothly manage other financial liabilities, make sure to keep the EMIs as low as possible.
Also Read
List of Items you can Purchase with a Home Appliances Loan
Here is a list of things that you can purchase using an appliance loan:
- Refrigerator or freezer
- Battery and inverter
- Washing machine
- Audio/video player
- Vacuum cleaner
- Water purifiers
- Chimney
- Video camera
- Dishwasher
- Microwave oven
- CCTV
- Coolers and air conditioners
- LED TV, plasma TV, home theatre, etc.
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.
Eligibility Criteria for Home Appliance Loans
Following is a tabular representation of the eligibility criteria and document requirements for a home appliances loan:
| Factors | Requirements |
| Age | Between 18 and 65 years |
| Income/ Revenue Source | Self-employed, salaried or pensioner |
| Gap Between 2 Home Appliance Loan Applications | 90 days |
Documents Required For Home Appliance Loans
Most lenders need certain documents to process your personal loan, which comprises of:
- Proof of identity and age of the applicant – Aadhaar card, PAN card, passport, driving license, ration card, voter ID, etc.
- Proof of income, i.e. 3 months’ salary slips or 6 months’ bank statements
- Proof of address – Aadhaar card, passport, driving license or voter ID card
- Last 3 years IT returns if you’re self-employed
- A coloured photograph of the loan applicant
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.
However, with Navi, you just need your PAN card as primary identity proof.
Top Things to Consider before Applying for a Home Appliance Loan
Make sure to go through the following pointers before you apply for a home appliance loan:
- Credit score: As a home appliance loan is an unsecured loan, the lender will verify your monthly income and credit score to check your repayment ability. So make sure you have a good credit score to get approval easily.
- Interest rate: The interest rate for appliance loans varies from one lender to another. You should compare and choose the best possible interest rate for your home appliance loan.
- No-cost EMI: Most lenders nowadays provide no-cost EMIs. Talk to your lender if this facility can be availed against your purchase as this is the best possible option to go for.
- Additional charges: You should also be aware of the additional charges such as processing fees, late payment and prepayment charges. Go through the documents carefully before availing of the loan.
Final Word
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.
FAQs on Home Appliance Loan
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.
Before you go…
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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