New Delhi, Sept. 18 -- Easy access to consumer durable loans can be useful for first-time borrowers looking to purchase electronics, appliances or other products while also building a credit history. However, borrowers should look beyond the advertised EMI because the actual cost of the loan can sometimes be significantly higher.

Consumer durable financing can provide formal credit to new-to-credit (NTC) borrowers who may otherwise find it difficult to obtain a loan. Regular repayment of these relatively small loans can help them establish a credit record.

The point-of-sale nature of such loans is another attraction, as borrowers can access financing almost immediately after deciding to make a purchase.

But convenience comes with poten...