Key Highlights of Budget 2018: Effects on Consumer Durable Products
Summoned by finance minister Arun Jaitley, the recently released budget for 2018-19 proposes a hike in customs duty on a number of products. The budget looks to boost the ‘Make in India’ campaign, which is a kind of Swadeshi Movement launched by the Indian government in the year 2014.
In order to promote this programme, the new budget proposes a hike of around 15-20% on custom duties on consumer durable products. This is to discourage imports, especially from China and other Asian countries, and in turn promote desi goods.
So, which products fall under the category of ‘consumer durable products’?
Consumer durable products are items that need not be purchased frequently as they are made to last for an extended period of time. Products that fall under this category include: Mobile phones, jewellery, gold, silver, cars, motorcycles, AC, TV, perfumes, furniture, video games, cigarettes, sports equipment, and so on. Due to the aforementioned changes, these products are about to see a surge in prices that may cause a deeper hole in your pocket.
Popular consumer durable products that will turn dearer post Budget 2018 include cars and motorcycles, LED/LCD TVs, mobile phones, wearable devices and smart watches, gold and silver, diamonds, jewellery, sunglasses, perfumes and mattresses.
Thankfully, many banks offer a consumer durable loan which makes it easier for the common man to purchase such products.
Some items that are covered under the consumer durable loan option are:
Mobile on EMI – Mobile phones are no longer a luxury product. The invention of smartphones has helped humankind progress at a much faster pace. They keep our key information safe and easily accessible. But there’s no denying that they can be super expensive, especially if you need one that allows you to access hi-tech features. This is why you have an option to avail an EMI mobile. Mobile on EMI or EMI mobile makes it easier for you to buy your dream phone on EMI basis. Every brand offers an EMI phone that gives you the opportunity to purchase it without waiting for the prices to drop. With that said, Phone on EMI is an excellent option for those who have a specific model in mind and don’t want to settle for anything else.
AC on EMI – Air Conditioners make our lives cooler, but an AC on EMI can make your life simpler and more affordable, too.
LED TV on EMI – We can all agree that watching a movie or TV show on a high definition LED TV serves as the best entertainer ever! You can also purchase an LED TV on EMI without credit card, as many banks offer loans on debit cards after assessing the applicant’s worthiness.
Camera on EMI – Many professional photographers are unable to scale the heights of success in their field due to financial setbacks. It is well known that buying a professional camera such as SLR or DSLR can be an extremely expensive affair. This can be overcome by availing the option of buying a DSLR on EMI.
Washing machine on EMI – With the world progressing at a rapid rate, it gets very difficult to find someone to help you with household chores. Therefore, it is advisable to get productive and practical technology like a washing machine on EMI. It does the work in a jiffy and doesn’t burn a hole in your pocket!
Refrigerator on EMI – An essential household item, a refrigerator is an absolute must in nuclear houses where both parents are working, and all food prep is done over the weekend. With that in mind, it’s important to purchase a good fridge that will last for a long time. For this, refrigerator on EMI is your best bet! Purchasing a fridge on EMI allows you to get the kind of quality product you need, without really affecting your tight budget.
Laptop on EMI – With technology driving the world, a laptop has become synonymous with education. However, because of its high cost, many individuals find it hard to get a machine of their choice. But with laptop on EMI, you can purchase exactly what you need. For the sake of affordability, you could also choose to buy a laptop on EMI without credit card.
Almost all aforementioned products can be purchased on EMI without credit card.
Perhaps understated, the budget is likely to have little impact on consumer durable loans. Even as the prices on products fluctuate, such schemes are generally preferred by buyers as they allow making smaller payments at an affordable rate of interest over a stipulated period of time. And this is likely to leave your finances intact!