Will UCO Bank consumer durable loan be beneficial to you?

Consumer Durable Loans 185 views

In a rapidly changing world, the range of possibilities has gone up substantially higher and particularly in the financial services space. Now loans are getting extended to customers for purchasing durables such as television, refrigerator, air conditioner, recliners, music systems, electronics and other products, much unlike the older days when things like these were taken by paying their price. Many a lenders have started providing consumer durable loan, which comes under the category of personal loan, to widen their reach among the masses. And one such lender is UCO Bank, which we are going to discuss in this article. The bank offers consumer durable finance for a period of upto 3 years at an interest rate of 14.10%-15.10% per annum. Processing fee charged by the bank is equivalent to 1% of the loan amount subject to a minimum of Rs 1,000. However, there are no prepayment charges. So, you can pay off the loan without bearing any charge when you deem fit to do so. Based on your income, repayment capacity, savings, you can be granted loan upto 80%-90% of the product's price from UCO Bank. The maximum loan amount equals to Rs 2,00,000 or 10 times of net monthly income.

Eligibility Parameters

Criteria Salaried Self-employed
Income Rs 30,000 per month at metro cities or Rs 20,000 per month at other locations. Savings of around 40% of the income each month after deducting EMIs and others or Rs 10,000 whichever is higher, must be there. Minimum annual income of Rs 4,00,000 across all the locations as per the ITR. Savings of around 40% of the income each month after deducting EMIs and others or Rs 10,000 whichever is higher, must be there.
Age21-60 years 21-65 years
Must Read  Consumer durable loan is here to get you laptops of Rs 50K-65K

EMI Calculator
The EMI is calculated by using the principal loan amount, interest rate and the loan tenure. Suppose you want to buy Sony Bravia KDL 43W950C 43 inch Smart 3D Full HD LED television worth about Rs 72,000. The EMIs will come out to be Rs 2,464-2,499 if you wish to buy the said television on loan for a period of 3 years. The interest outgo and the total amount payable will be Rs 16,714-17,980 and Rs 88,714-89,980, respectively, for a 3-year loan. Let us know EMI of different periods for the same loan amount in the table shown below.

Loan AmountLoan Tenure Interest RateEMI Interest OutgoTotal Amount (Principal+Interest)
Rs 72,000114.10% p.a.-15.10% p.a.Rs.6,468-6,502Rs.5,617-6,024 Rs.77,617-78,024
Rs 72,000214.10% p.a.-15.10% p.a. Rs.3,460-3,494 Rs.11,048-11,867 Rs.83,048-83,867
Rs 72,000314.10% p.a.-15.10% p.a. Rs.2,464-2,499 Rs.16,714-17,980 Rs.88,714-89,980

Amortization Table

Year PrincipalInterest Balance Amount
1Rs. 20,497-20,719Rs. 8,849-9,491Rs.51,281-51,503
2Rs. 23,814-23,838 Rs. 5,730-6,174 Rs.27,443-27,689
3Rs. 27,472-27,720 Rs. 2,142-2,317 Rs. 0

From the EMIs and interest amount obtained on the loan amount in the table, you can figure how beneficial it is to take loan for a shorter tenure as it lessens the interest outgo from the pocket. However, the EMIs will rise on the shorter tenure. So, make sure you have enough in your hand to deal with the higher EMIs on a shorter tenure. Else, you can opt for a longer tenure to pay small EMIs with ease.

Documentation

Proofs Salaried Professional Self-employed
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 ProofLatest Salary Slip, bank statement for last 3 months Latest 2 year ITR with statement showing computation of income, CA Certified or auditied 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 ProofDriving License/Passport copy/PAN CardDriving License/Passport copy/PAN Card
Must Read  Check out EMIs and interest outgo on loan taken to buy latest LED TVs

Consumer Durable Loan is Applicable on Following Items
•    Refrigerators
•    Washing Machine
•    Laptops and Ultra books
•    Air conditioners
•    Recliners
•    High End Audio and Home Theatre Systems
•    Modular Kitchen
•    Tablets
•    Mobile Phones
•    High End Camera and Lenses
•    LED Televisions

(Updated on:1 November,2016)