Buying an Air Conditioner (AC) can be a significant expense, especially if looking for a high-quality, energy-efficient model. Thankfully, many financial institutions offer consumer durable loans that make it easier to purchase such items. Purchasing an AC on EMI (Equated Monthly Instalment) allows you to spread the cost over a period, making it more affordable.
Understanding AC Financing
Before getting into the documentation, let’s briefly understand what AC financing means. When you finance an AC, you are essentially taking a loan to cover the cost of the air conditioner. Instead of paying the full amount upfront, you pay in instalments over a period. This way, you can enjoy the comfort of a cool home without putting a strain on your finances.
One of the key benefits of AC financing is the flexibility it offers. You can choose a repayment tenure that suits your budget and cash flow. Additionally, many lenders provide the option of no-cost EMI, which means you only pay the cost of the AC without any additional interest.
Documents Required for Financing an AC
When you decide to buy an AC on finance, you are required to submit certain documents. These documents help the lender assess your eligibility and process your loan application smoothly. Here is a list of commonly required documents:
- Identity Proof
- Address Proof
- Bank Account Statement or Passbook
- Passport Size Photograph
Let’s know about each of these documents in detail.
1. Identity Proof
Your identity proof verifies who you are. This is crucial for the lender to ensure that they are lending money to the right person. Acceptable documents for identity proof include:
- PAN Card: The Permanent Account Number (PAN) card is a widely accepted identity proof in India.
- Aadhaar Card: The Aadhaar card contains your unique identification number and biometric information.
- Driving Licence: A valid driving licence also serves as proof of identity.
- Voter ID: This document confirms your identity as a registered voter.
2. Address Proof
Address proof verifies your current residence. It helps the lender understand where you live and facilitates communication. Acceptable documents for address proof include:
- Aadhaar Card: It serves as both identity and address proof.
- Utility Bills: Bills like electricity, water, or postpaid landline, not older than two months, are acceptable.
- Driving Licence: If your licence includes your current address, it can serve as an address proof.
- Voter ID: This also acts as an address proof if it includes your current address.
3. Bank Account Statement or Passbook
You are required to provide a Bank Account statement or a Passbook updated within the last 90 days. This document helps the lender assess your financial stability and ability to repay the loan. It gives them insight into your income, expenditure, and saving habits.
4. Passport Size Photograph
A recent passport-size photograph is typically required to complete your loan application. This photograph will be used for your loan documentation and identification purposes.
Key Benefits of Financing an AC
Financing an AC makes comfort more affordable and accessible for your home. Here are the key benefits you get from financing your AC on EMI:
- Affordability: Financing makes it possible to buy an AC without a huge initial expenditure.
- Flexible Repayment Options: Choose a repayment schedule that fits your financial situation.
- No- Cost EMI: Pay the price of the AC in instalments without extra interest.
- Instant Approval: Many financial institutions offer quick and easy approval processes.
Additional Tips for a Smooth Application Process
To ensure a smooth application process, here are some additional tips that will help you complete the procedure without hassle:
- Ensure Document Accuracy: Double-check that all the details on your documents are correct and match each other.
- Keep Documents Updated: Make sure your address proof is not older than two months and your bank statement is updated.
- Have Originals Ready: Sometimes, lenders may ask to see the original documents for verification, so have them ready.
- Use Online Application Options: Many lenders, like HDB Financial Services Limited, offer online application processes that are quick and convenient.
The Application Process
Now that you know the documents required, let’s briefly discuss the application process. The procedure can be completed online or by visiting a branch or partner store. Here’s a step-by-step guide:
Online Application
- Visit the lender’s website and go to the ‘Apply Now’ page.
- Fill in your details and verify your mobile number with an OTP.
- Enter your professional information and upload the required documents.
- Submit your application and wait for approval.
Mobile App
- Download the lender’s mobile app.
- Verify your mobile number with an OTP.
- Click ‘Apply for a New Loan’ and fill in the required details.
- Upload the necessary documents and complete the application.
Visit a Branch
- Visit the nearest branch of the lender.
- Get in touch with a loan representative.
- Fill out the application form and submit your documents.
Call Customer Support
- Call the lender’s customer support number.
- Provide the necessary details and follow their instructions to complete your application.
Visit a Partner Store
- Go to a store that partners with the lender.
- Speak to a representative about financing options.
- Complete the application process with their help.
Conclusion
Financing an AC can make your purchase more manageable and affordable. By spreading the cost over several months, you can enjoy the comfort of a cool home without a large upfront payment. The key to a smooth financing experience lies in having the right documents ready. With identity proof, address proof, bank statements, and a passport-size photograph, you can easily apply for a loan and get your AC on finance.
