Do you want to buy the latest smart phone but are falling short of funds? A smart phone is no longer a luxury but it has become a necessity. These devices come with advanced features that make it easier for you to get things done.
Lack of funds will no longer prevent you from buying the latest smartphone. Banks, as well as non-banking financial companies (NBFCs), provide loans to fund such purchases. Here are five features of these loans.
- High loan amount
To purchase a smart phone you may avail of a consumer durable loan (CDLs).Lenders offer loan amount ranging from INR 8,000 to INR 5 lakh. This enables you to purchase the latest phone without any difficulty.
- Flexible repayment schedule
Lenders offer a flexible repayment schedule as per your convenience. This ensures you do not face any financial difficulty while paying the Equated Monthly Installments (EMIs).
- Affordable interest rates
Several financial institutions offer CDLs at 0% interest rate and low downpayments. Furthermore, no security deposit is required while availing of a CDL. If you want to repay the loan before the end of the loan duration, you do not have to pay any foreclosure charges. All these features make it affordable for you to purchasethe latest mobile on EMI.
- Hassle-free and quick procedure
When you apply for a CDL, you need to submit only a few basic documents that include the Know-Your-Customer (KYC) documents. You will need to pay the cheque for the first EMI and a repayment mandate. This makes the entire procedure quick and hassle-free and allows you to buy the latest smartphone without any delay.
- Lack of credit card requirement
When you buy a phone on EMI using a CDL, you do not need to use your credit card for the purchase. This ensures your card limit is not reduced by a large amount when you buy an expensivesmartphone. In addition, credit cards are expensive and opting to buy the phone with a loan is a cost-effectiveoption.
You may buy an expensive smartphone either through a credit card or a CDL. Both these options entail pros and cons. It is recommended you understand the differences between these two options before making your decision.
Here are three differences between usinga credit card and availing of a CDL to purchase the smart phone.
- Down payment
You may need to pay some amount as the down payment when you purchase phones without a credit card. However, several NBFCs provide CDLs with low down payment, making it easy and affordable for you to own the latest device. On the other hand, the entire purchase amount after reducing the discount, if anyis charged to your credit card, thereby eliminating the need for any down payment.
- Charges and interest
When you make a purchase with a credit card, you may not incur anyprocessing fees although some swiping charges may be applicable. Financial institutions may levy a nominal fee when you opt for aCDL. However, the interest rate payable on a credit card is significantly higher than that on a CDL. Certain NBFCs may also offer the loan at 0% interest, which makes it affordable to buy the phone using a CDL.
The entire procedure to apply for a CDL is quick and hassle-free. Most NBFCs complete the approval and sanction within a very short period of time. In comparison, purchasing the mobile on EMIwith your credit card may be a complex procedure especially for first-time buyers.
A smartphone keeps you connected with the world and helps you complete your work without any trouble. Funding the purchase with a CDL is advisable due to the several benefits offered by such facilities. You may apply online or visit the nearest branch and own the latest device today.