Consumer Durable Loans3316 views
Times have changed in the financial services space, aren't they. It has become possible to bring home consumer durables like refrigerator, washing machine, air conditioner, LED television and others on loan, much unlike the yesteryear when loan for such durables had no space in the market at all. But as they say things do not remain constant in life, the financial world has widened its portfolio of products over a period of time. In its bid to advance the offerings, a product called consumer durable loan has emerged, much to the delight of those who wish to buy their favourite durables without utilizing their savings to achieve the same. You can now choose from various lenders be it a bank or a non-banking finance company (NBFC) to avail consumer durable loan. In this article, we will compare the consumer durable loan offerings of two prominent lenders, HDFC Bank and Axis Bank.
HDFC Bank vs Axis Bank on consumer durable loan
| Particulars | HDFC Bank | Axis Bank |
|---|---|---|
| Quantum of finance | Upto 100% of product price with a maximum limit of Rs 15 lacs | 12 times the monthly salary or 85% of the cost of product, whichever is lower. Maximum limit on the loan is Rs 2 lacs |
| Minimum Loan Amount | Rs 40,000 | Rs 25,000 |
| Loan Tenure | 1-3 years | 1-3 years |
| Interest Rate | 16%-22% per annum | 15.5%-24% per annum |
| Processing Fee | 2% of the loan amount with a minimum limit of Rs 500 | 1% of the loan amount |
| Pre-payment charges | No pre-payment allowed till the repayment of 6 EMIs. Prepayment charges of 2%-4% of the principal outstanding | No pre-payment allowed till the repayment of 6 EMIs. Prepayment do not bear any charge |
| Age | For salaried, age of 21-60 years. For self-employed, age of 26-65 years. | For both salaried & self-employed, age of 24-55 years |
| Income | For salaried, a minimum annual income of Rs 1,80,000 is required. Self-employed must have an ITR of Rs 1,50,000. | For salaried, minimum net monthly income of Rs 7,500. Self-employed must have annual income of Rs 1 lac. |
| Age Proof | Passport Copy/PAN Card/ Voter ID card, Photo Driving License with birth date (laminated, recent, legible)/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate | Passport Copy/PAN Card/ Voter ID card, Photo Driving License with birth date (laminated, recent, legible)/Photo ration card with DOB/Employer certificate/ID/School/College Leaving Certificate |
| Identity Proof | PAN Card/Voter ID/Passport/Driving License, 2 passport size photographs | PAN Card/Voter ID/Passport/Driving License, 2 passport size photographs |
| Income Proof | For salaried, latest salary slip and bank statement for last 3 months. For self-employed- latest 2 year ITR with statement showing computation of income, CA Certified or audited profit & loss account statements and balance sheet for last 2 years, bank statement for last 6 months | For salaried, latest salary slip and bank statement for last 3 months. For self-employed- latest 2 year ITR with statement showing computation of income, CA Certified or audited profit & loss account statements and balance sheet for last 2 years, bank statement for last 6 months |
| Address Proof | Latest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID | Latest Telephone Bill/ Electricity Bill/Property Tax Receipt/Passport/ Voter ID |
| Signature Verification Proof | Driving License/Passport copy/PAN Card | Driving License/Passport copy/PAN Card |
| Invoice of the article purchased | Yes | Yes |
| Guarantor Fom | Yes | Yes |
If you want to buy a washing machine Samsung WD80J6410AS/TL whose price is Rs 63,000, you must be keen to know the EMIs, interest payout and others on loan from both HDFC Bank and Axis Bank. We will let you know that in the table below.
Table showing EMIs and interest outgo on loan taken to buy washing machine titled Samsung WD80J6410AS/TL (Assuming 100 per cent finance given on the monthly income of Rs 15,000)
| Bank Name | Loan Amount | Tenure | Interest Rate | Processing Fee | EMI | Interest Payout | Total Payout (Principal+ Interest) | |
|---|---|---|---|---|---|---|---|---|
| Axis Bank | Rs 63,000 | 3 years | 15.5%-24% | Rs 630 | Rs 2,199-2,472 | Rs 16,177-25,980 | Rs 79,177-88,980 | |
| HDFC Bank | Rs 63,000 | 3 years | 16%-22% | Rs 1,260 | Rs 2,215-2,406 | Rs 16,736-23,616 | Rs 79,736-86,616 |
Now that you have got the information to compare the consumer durable loan offerings of HDFC Bank and Axis Bank. Choose the option taking into consideration the effect of interest rate, interest outgo and EMI payment on your budget.
