AS THE GOODS and Services Tax (GST) rate cut has given a push to premiumisation in consumer spending, lenders are offering special deals such as zero-cost EMIs, cashbacks, discounts and flexible repayment options on consumer durable loans.
For instance, HDFC Bank is offering savings of up to Rs 50,000 on personal, car, home loans. Axis Bank is offering personal loans starting at 9.99% and exclusive partner deals for electronic products. The bank is offering special discounts on two-wheeler EV loans and superbike loans. Similarly, L&T Finance is offering festival schemes for two-wheeler customers — zero-cost EMI, prompt payment rebate, and EMI Lite Festive (buy in 2025, pay in 2026).
Lenders are also providing instant small-ticket loans to pre-approved customers and those with strong credit profile. So, GST rate cuts, attractive loan offers and special discounts by dealers and platforms will help to reduce the total amount a customer needs to finance. This directly translates into a lower monthly EMI payment, making purchase of durables more accessible and manageable for a wider range of consumers.
Loans for durables
Consumer durable loans are unsecured personal loans. However, they are tied to a specific product and tenure so that they can be marketed more efficiently. Interest rates tend to be standardised, so the scope to negotiate is limited.
Adhil Shetty, CEO, BankBazaar, says retailer tie-ups often unlock promotional rates, and sometimes credit card EMI conversions may be cheaper for shorter periods. “The key is to weigh all options and focus on lowering the overall cost, not just the stated rate,” he says.
Ashish Tiwari, chief marketing officer, Home Credit India, says this festive season is witnessing a clear shift in consumer sentiment where affordability and accessibility are key drivers of purchase decisions.
“The combination of GST benefits and easy EMI financing is a powerful one, empowering families to make planned upgrades—from new smartphones to home appliances—without putting a strain on their budgets,” he says.
Watch out for
When opting for a consumer durable loan to purchase appliances, gadgets, or electronics during the festive season, it is important to look beyond just the monthly EMIs. Processing charges, documentation costs, and GST on fees can all add up, raising the total outgo.
Radhika Binani, chief product officer, Paisabazaar, says the borrower should check the interest rate offered by the lender, processing fee, foreclosure charges, part payment fee, etc., before opting for the loan. “Zero-cost EMIs can be an important factor, but look for the processing fee being charged on the loan as well,” she says.
Borrowers should calculate the “all-in cost” and compare it with the cash price of the product. Shorter tenures are usually better, since durables lose value quickly. A disciplined approach ensures the loan helps you buy smarter, not pay more than the product is worth. The borrower must always calculate the total cost of owning a consumer durable to understand the total amount he has to pay for the loan.
Loans from fintech
While fintech lenders offer speed and convenience, the process is completely digital and one can get the loan approved and funds disbursed on the same day. Borrowers can get pre-approved offers and also get
customised offers based on their credit profile.
However, borrowers must read the repayment terms and conditions carefully as penalties on failed auto-debits can be steep. Fast credit has its appeal, but a loan is only useful when it is affordable, compliant, and safe.