Several reasons can compel a person to avail of a consumer loan. These include buying inverter air conditioning, upgrading the television, transforming the kitchen, and many more. When banks provide loans to consumers for purchasing household goods, it is termed a consumer loan. The amount of loan will vary from bank to bank. There are numerous banks in the present times that provide cutthroat interest rates and minimal processing fees on a huge array of consumer goods. Also, you can get hands-on options where you can pay the loan back through EMIs and within a time period of 36 months or more. It is always recommended to select a short tenor as it helps in saving the amount of interest. But there is no cost EMI plans available as well that will help you to select a longer tenor. It will not even affect the interest rate.
Document Requirement for Consumer Loans
Consumer loans require very little documentation which is the best part about it. The documents that you need to submit for attaining approval are as follows:
- Recent photographs
- Signature and identity proof
- Income proof
- Address proof
However, if you are a self-employed professional, then the documentation will vary. It is always better to confirm with the bank first before applying.
What is the Amount that One Can Acquire from a Consumer Loan?
As you move forward to buy a consumer loan, you will need to make a down payment from your own pocket. This is to be done after you receive approval for the loan. Usually, financial institutions offer just 80% financing of the real product price. With this, you can understand that you will need to provide a down payment of 20% of the purchase cost. Also, there are lenders who can offer 100% financing, and where you do not even need to provide a down payment. Researching thoroughly is very important prior to apply for consumer loans.
The amount that you can expect from consumer loans ranges from Rs 5000 to Rs 15 lakh. It will differ from one bank to the other.
Throwing Light on Interest Rate
If you compare to personal loans, the rate of interest in regards to consumer loans is quite low. There are manifold banks currently that aim to benefit consumers by providing no-cost EMI carrying no interest charges. However, they offer these only on selected products. The rate of interest will always be different from lender to lender. Comparing each is very important prior to the avail of a loan. Also, there are lenders who will be charging a low amount of processing fee on the amount of loan.
- You need to be a salaried employee
- Your age must be 21 years or above
- Your monthly income must be Rs 18,000 or above
If you are a self-employed person, then
- Your age must be above 26 years
- You must carry tax returns that are filed
- The income shown must be more than Rs 1.5 lakh
There are online eligibility checkers available where you can easily check and know whether to apply for a consumer loan or not.
When it comes to consumer loans, it is the best way of living smartly. With this kind of loan, every gadget or appliance will seem affordable to anyone. A limited income can never buy you the things you wish for. As there is instant approval included along with very little documentation, consumer loans are regarded as extremely hassle-free ones. In fact, you can even benefit a lot from preapproved offers in consumer loans as well. Contact us today to know more.