Consumer durable loans are small loans which help a customer to buy home appliances with easy EMIs. This type of loan is used exclusively to purchase durable products such as AC, TV, washing machine, refrigerator, laptop, computer, microwave, kitchen appliances, smartphone, furniture etc. Consumer durable loans are offered on the products which come with a warranty period. The consumer durable loan comes in use when a customer wants to upgrade their lifestyle but cannot help because of the lack of liquid fund. The loan amount is disbursed directly to the seller’s account and the repayment of the loan happens in installments.

More on Consumer Durable Loans

Interest Rate

The interest rate of consumer durable loans are generally lower than personal loans or credit cards. The interest may vary from one institution to another. Some institutions may offer a consumer durable loan even on a 0% interest rate. Bajaj Finserv is one of those lenders with whom customers can enjoy interest-free consumer durable loans.


The tenure of most of the consumer durable loans ranges from 3 months to 24 months. Once again the interest rate may differ depending on the lending institution. Before opting a loan check your EMI with EMI calculator. A shorter loan tenure will make the EMI amount higher whereas a longer tenure will attract a small amount of interest rate.


In order to avail a consumer durable loan, the down payment is required. Most of the lending institutes finance up to 80%- 95% of the product price. The rest of the 20% -5% has to be paid by the customer at the time of buying the product.


Some basic documents are required to avail a consumer durable loan. The list of required documents includes- ID proof, address proof and proof of income.

Opportunity in Consumer Durable Loans

Consumer durable loans offer an excellent growth opportunity for both consumers and businesses. The rising demand for consumer durable loans has made the competition intensified in this segment for the loan providers. Though the presence of consumer durable loan providers are many in number, needless to mention that only a few firms are providing appreciable service. If those firms aim to resist in this market with tough competition, they need to come up with additional benefits or extraordinary services to attract more and more customers.

The increasing demand for consumer durable loans is the driving force of high competition in the market. The growing middle-class families play an important role in raising the demand for consumer durable loans. The steady growth of income of consumers and the willingness to make life even more comfortable makes people purchase more and more durable goods such as kitchen appliances, electronic items, furniture etc. Also, the fall in the prices of durable goods and easy import of components add fuel to the increasing demand for durable items as well as the durable loans.

This credit product is quite popular in rural areas too. The studies have shown that the growth of business which provides a consumer financing option in rural areas is quite considerable.  Despite demonetization and the roll-out of the GST which impacted consumption of almost all items across the country, most of the businesses with EMI financing report 20% of annual growth. The introduction of consumer durable loans has increased sales in a significant manner. The electronic items such as flat TVs, refrigerators, mixer grinders, sewing machines, air coolers are some of the best-selling consumer durable product of rural areas.

The financing option is a much impactful asset to standardize the lifestyle of middle-class customers. The more expensive consumer goods such as refrigerators, washing machines, colour televisions, personal computers etc. become accessible because of the easy EMI option provided by financial firms. Some firms provide loans with a nominal down payment and processing fee whereas there are financial firms who are offering personal durable loan at zero interest and zero down payment. Presently, the maximum number of franchisees are getting tied up with financial firms to make easy EMI options available for their customers. The easy availability of consumer financing encourages the lower and middle-income group to step ahead towards accessing durable items when the cost of borrowing and flexibility of the scheme is in their favour.

Bottom Line

Thus, consumer durable loans make purchasing costly items affordable. It is an easy and smart way to upgrade your lifestyle without taking much pressure on your monthly budget. The minimal documentation, quick approval, instant loan disbursal, and low interest have made this product much attractive than using a personal loan or credit card for purchasing durable home appliances and furniture.