Consumer durable retailers and manufacturers may end up bearing the cost after the Reserve Bank of India’s (RBI) tightened unsecured loan norms which pushes them to swallow the higher interest rate impacting their margins.
During the festive season which just passed by, consumer durable companies have started offering longer tenure loans, zero down payments, and zero interest on a wider assortment of products than ever before, thus making the product more affordable. While 18 and 24 months easy instalment (EMI) options were available earlier, companies offered them only on select products, which is now being offered on a larger section of products.
While the consumer won’t bear the brunt of RBI’s move, companies, however, still await clarity but expect their margins to
First Published: Nov 20 2023 | 8:18 PM IST