Banks are coming out with unique
loans to attract more customers. Right from Refrigerator, to music
system to washing machine, you can buy anything. The demand for such
loans witness a sharp rise during the festive season. 0% loan schemes
are popular during this time. This loan is however available only with
nationalised banks.
Maximum Amount of Consumer Durable Loan Offered:
The quantum
of the loan varies from one bank to another. However, most banks offer
loans between Rs 10,000 and Rs 100,000. For instance, Punjab National
Bank offers up to 90 per cent of the cost of the article, subject to a
maximum of Rs 100,000.
The minimum amount of loan offered is Rs 5,000. Syndicate Bank offers
up to 80 per cent of the invoice value of the products purchased or 10
months gross salary, whichever is less, subject to a maximum of Rs
200,000.
The maximum limit is Rs 100,000 for pensioners. Then there is UTI Bank,
where the minimum amount is Rs 25,000 and the maximum is Rs 200,000,
provided it does not exceed 85 per cent of the cost of the product.
A loan can be taken for a maximum period of 60 months. UTI Bank,
however, offers it for a maximum period of 36 months. Under SBI's
'Festival Loan' scheme, money is offered for only up to 12 months.
Interest Charged by Banks on Consumer Durable Loan:
The rate
of interest on consumer durable loan is lower than the interest on a
personal loan. So, taking this loan makes more sense. The rate of
interest varies between banks and also depends on the prevailing market
conditions.
Consumer Durable Loan Application Process:
Customers can
obtain application form either in person from the bank or apply online.
Banks charge a nominal 1% fee on the loan amount as processing charge.
The processing takes 3-5 days.
Documents Required for Approval of Consumer Durable Loan:
- Proof of identity such as driving license or passport.
- Proof of income such as your latest salary slip or a copy of Form
16.
- Proof of residence such as your ration card, passport or latest
electricity bill.
- Bank statement for the last six months. The loan takes between
three to five working days to be processed.
List of Leading Banks offering Consumer Durable Loan:
