INCOME TAX18 Sept 2026
Getting a consumer durable loan? Don't let hidden processing fees and ‘no-cost’ EMI catch you off guard | Mint
Consumer durable loans are helping first-time buyers get credit for electronics and appliances, and regular payments can build a credit record. But the advertised equated monthly instalment (EMI) may hide the real cost. A longer tenure, processing fees, taxes, foreclosure charges and losing a cash discount on zero-cost EMI plans all push the price up. Compare the total cost with an outright purchase before signing.
Key Statutory Highlights
- Many consumer durable loans are marketed as zero-cost EMI schemes, but the interest may already be built into the product's sale price.
- Beyond the EMI, borrowers should check processing charges, convenience fees, applicable taxes and prepayment or foreclosure charges.
- A long repayment period or even one missed instalment can hurt the credit score of a borrower with a limited credit history.
Actionable Advice for Taxpayers / Founders:Before you sign, ask the lender for the total cost of the loan including all fees and taxes, and compare that EMI price with the outright purchase price and any cash, exchange or festival discount you would lose by paying in full.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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