A Complete Guide for Getting a Loan for Air Conditioner

Air Conditioner (AC) units use advanced technologies, which enable users to operate them in hot and cold control modes.

A reversing valve helps the unit reverse the energy flow, and the AC transforms into a heater. It is one of the desirable products for individuals to provide a comfortable life for their loved ones. Simply switch on the heat or cool mode, set the level to an ideal temperature and relax indoors.

Buy an AC on EMI

Like most luxury products available in the market, an AC can be quite expensive, depending on the brand and the model. While individuals may want to buy an AC right away, they may find paying a large amount tough. 

Also, most salaried professionals want to keep their accounts filled with a considerable portion of their salary instead of paying an upfront amount for the purchase. AC loan or a personal loan for AC can help individuals to buy the AC unit and pay for it in EMIs (Equated Monthly Instalments) at their convenience. 

With the expanding digital lending market, personal loan instant approval is easy for small or big-ticket expenses. Digital lending is projected to reach around 350 billion dollars by 2023, mainly covered by FinTech startups and non-banking financial companies (NBFC). In India, it is set to account for 60% of the fintech market by 2030. Here is the guide to AC loans and crucial aspects to consider for instant personal loan approval.  

The Convenience of Opting for a Personal Loan for AC

  • Flexible Repayment Tenure: The repayment tenure is flexible between 12-60 months. Customers can choose a suitable tenure as per their repayment capability and cash flow.
  • Minimal Documentation: Apply online with basic documents for personal loans. An AC loan online can be availed against minimal documentation, unlike a traditional loan processed in a lender’s office.
  • Cheaper than Credit Cards: Any purchase using a personal loan is much cheaper than a credit card. While credit card users need to pay high-interest rates, personal loan interest rates are affordable, starting as low as 11.99% with reputed NBFCs. Lenders consider the credit score, employment status, income, credit utilisation ratio, etc., to decide loan interest rates.
  • Fast Disbursal: Following a paperless process, applying for an AC loan is quick. Once the applicant completes all checkpoints and submits the loan application, the application is verified and approved, after which the loan amount gets disbursed instantly.
  • Prepayment Facility: Lenders can allow borrowers to prepay/foreclose personal loans for ACs. The charge for prepayment or foreclosure can be nil or minimal, depending on the period of the completed loan tenure.

Who can Get a Personal Loan for AC?

Following are the common eligibility parameters individuals need to meet to get instant personal loan approval: 

  • A salaried employee, a self-employed person, or an entrepreneur can apply for a personal loan for AC. 
  • The age limit is 21-60 years.
  • The minimum monthly income requirement for residents of Mumbai and Delhi is Rs.25,000, and for other cities, applicants should earn Rs.20,000. 
  • A good credit score of 750+ is required.
  • The applicant should have the required documents for a personal loan.

Documents Required 

Required documents for personal loan instant approval are as follows:

  • PAN (Permanent Account Number)
  • ID Proof – Aadhar, Voter ID, Driving Licence, Passport, etc.)
  • Address Proof – Aadhar, voter ID, Passport, driving licence, utility bill, ration card, rent agreement, etc.
  • Signature Proof – PAN, Passport, etc.
  • Last six months’ bank statements

Additional Documents for Salaried Persons

  • ITR or Form 16 
  • Last three months’ salary slips 

Additional Documents for Self-employed Persons

  • Income statements for the last two years
  • Business Proof – GST number, licence, registration certificate, etc.
  • TDS Certificate (Form 16A), Income Tax Challans or Form 26 AS for income declared in ITR

Steps to Apply Online

Applying for a personal loan for AC is completely paperless. It can be completed on the lender’s official website using a laptop or smartphone. Following is the step-by-step process:

  • Access the personal loan application. Enter an active mobile number and employment status – salaried or self-employed. 
  • Verify the One-Time Password (OTP) sent on your mobile number. 
  • Provide personal details, like name, age, income, bank account details, email ID, PAN, etc. 
  • Provide loan details – loan amount required and preferred loan tenure.
  • Upload scanned copies of the relevant documents. 

The lender will review the application for further loan processing. After successful document verification, the lender will sanction the loan amount. 

This way, individuals can get personal loans with instant approval without spending much time. Get the loan amount in the bank account, choose the AC brand and buy an AC.


In conclusion, opting for a personal loan to finance the purchase of an air conditioner provides a convenient and flexible solution for individuals seeking comfort in their homes. The guide outlines the advantages of choosing a personal loan, emphasizing factors such as flexible repayment tenure, minimal documentation, and faster disbursal through digital lending platforms.

Frequently Asked Questions

Q1: Why should I consider getting a loan for an air conditioner?

A1: Financing your air conditioner through a loan allows you to enjoy the benefits of a comfortable living environment without the immediate financial burden. It enables you to spread the cost over manageable monthly payments.

Q2: What types of loans are available for air conditioner purchases?

A2: Common options include personal loans, home improvement loans, and HVAC financing. Personal loans are versatile, while home improvement loans may offer specific benefits for energy-efficient upgrades. HVAC financing is tailored for heating, ventilation, and air conditioning needs.

Q3: How does the loan approval process work?

A3: The approval process typically involves assessing your credit score, income, and financial history. Lenders may also consider the purpose of the loan and the type of air conditioning system you plan to install.

Q4: Can I get a loan for both residential and commercial air conditioning units?

A4: Yes, many lenders offer loans for both residential and commercial air conditioning systems. The eligibility criteria and loan terms may vary based on the scale and purpose of the installation.

Q5: What factors should I consider when choosing a loan for my air conditioner?

A5: Key considerations include interest rates, loan terms, and any additional fees. It’s crucial to compare offers from different lenders to find the most favorable terms that suit your financial situation.

Jiya Ali

I'm jiya Ali, a passionate health enthusiast and proficient writer with a strong command of SEO. My mission is to uncover the mysteries of well-being.

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