Consumer durable loans are for purchasing household appliances and electronics. They are provided to individuals over 18 years of age who have sufficient income to repay monthly installments over 12 to 36 months. While unsecured, some equipment may be hypothecated as collateral. Interest rates vary between banks, with nationalized banks typically charging less than other banks. The loans can range from Rs. 5,000 to Rs. 100,000 with 90% of the purchase value advanced.

1. Consumer Durable Loans
Introduction
Types & Interest Rate
Consumer Durable Loans Retail Banking Chapter 10

2. Introduction
Consumer durable loans are for the purchase of consumer
durables such as Food Processors, Microwaves, Television,
Washing machines, etc. The loans are advanced to person who is
over the age of 18 years and having sufficient disposable income to
repay monthly installments.
As it is for consumer durables, the quantum may very from
Rs.5,000/- to Rs.1,00,000/-. Normally 90% value is advanced. The
period of repayment is form 12 months to 36 months.
Consumer Durable Loans Retail Banking Chapter 10

3. Types & Interest Rate
Although it is a unsecured type of loan, but in some
equipments like computers, refrigerators, music systems, etc. are
hypothecated.
The rate of interest of this loans are vary from bank to
bank. But the nationalized banks charges less interest than that of
other banks.
Consumer Durable Loans Retail Banking Chapter 10

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