Consumer Loan for Low Income (Rs.5,000-Rs.33,333) Earners

Consumer Loan

Do you dream of a new sofa or the latest curved television but are short of money? No worries, there are many finance companies and banks offering consumer loan or financing for the purchase of furniture and appliances. For example, sofas, sound equipment, refrigerators, televisions, Smart TVs, vacuum cleaners, washing machines, dishwashers, dryers, furniture for the terrace or garden and so on.

However readers of this site has asked various questions on financing options available for buying smartphones, television, furniture, etc. as follows:

(1) Whether consumer loan for low income is possible or not?

(2) What is the minimum income required for consumer loan?

(3) Can a self employed earning individual get loan to buy consumer durables?

The answer is YES. There are many banks or financial services companies offering consumer loan for low income earners who want to buy mobile phone, smart TVs, washing machines, etc.

What are Consumer Loan?

Consumer loans are loans granted by financial institutions to their customers for the purchase of goods or services. In general, the use of these resources is not commercial; it is more common for them to be used for own or family expenses, such as the purchase of household goods such as furniture, appliances or remodeling. A consumer durable loan helps low income earners (and others too) who do not want to spend all their money in a single payment. Lending it gives poor earners, the opportunity to pay back in convenient installments.

Here is the table showing list of finance companies offering consumer durable loan and the minimum monthly income required:

Tips for managing a consumer credit

(1) Check your ability to repay. i.e., balance the income you receive each month against the expenses you must meet in the same period, including the payment of outstanding debts. If the result is that you’ll have to pay more than you’ll receive, it’s a bad time to take on an additional obligation.

(2) Use the consumer credit that suits you best. Each type of consumer credit has different characteristics, such as: interest rate, terms, grace periods, benefits, among others, so it is essential to compare the different rates and choose the one that fits your need.

(3) Inquire about interest rate and benefits of the credit. This allows you to compare between different lenders and keep the one that best suits your needs. Do not choose the entity because of its colors, commercials.

(4) Avoid applying for a consumer loan to get out of other debts, your situation will become unsustainable in no time.

(5) Pay on time. This will avoid entering into arrears and, as a consequence, face additional charges, in addition to being reported at the credit bureau.

(6) Do not accept more than you can pay or ask for credit without a clear purpose.

(7) Paying extra money, to the extent possible, will help you pay the credit faster and save on interest.

Author Bio:

Hi, I am Nikesh Mehta owner and writer of this site.

Nikesh Mehta - ImageI’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.

I can be reached at nikeshmehta@allonmoney.com. You may also visit my LinkedIn profile.

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