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Do Appliance Loans Cover the Cost of Kitchen Appliances?

Do Appliance Loans Cover the Cost of Kitchen Appliances?
Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanUpdated February 9, 2022
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Appliance loans can cover the cost of kitchen appliances. These appliances, including refrigerators, dishwashers, ovens, microwaves, and stovetops, can individually cost hundreds or thousands of dollars. To help pay for these expenses, consumers may consider a variety of appliance financing options.Personal loans, credit cards, home equity loans, personal lines of credit, and in-store financing can serve as appliance loans. Below, we explain what appliance loans are and uncover several factors that may affect the cost of new kitchen appliances.

What Are Appliance Loans?

Appliance loans, also known as appliance financing, are any financial lending product where consumers can borrow money to pay for the cost of buying an appliance. As mentioned above, personal loans, credit cards, home equity loans, personal lines of credit, and in-store financing can all serve as an appliance loan.Appliances can individually cost hundreds or thousands of dollars, while the cost of remodeling your kitchen can exceed $30,000, according to HomeAdvisor. Appliance loans can help you meet these expenses.

Can You Pay for Kitchen Appliances With an Appliance Loan?

Consumers can purchase kitchen appliances with an appliance loan. As mentioned above, appliance loans are any financial lending product where you borrow money to pay for the cost of buying an appliance.Kitchen appliances can consist of refrigerators, dishwashers, ovens, microwaves, and stovetops. Appliance loans can finance those items, and appliance loans can also help pay for other household appliances outside of the kitchen.

What Does a Kitchen Appliance Loan Cover?

Here are some home appliances a kitchen appliance loan may cover:
  • Refrigerators
  • Dishwashers
  • Ovens 
  • Microwaves
  • Cooktops or stovetops
  • Kitchen sinks
  • Ranges

Typical Requirements for Appliance Loans

Typical requirements for an appliance loan may require borrowers to provide documentation verifying their identity, employment, and gross monthly income as part of the application process. Lenders may ask you to present photo identification, such as a driver’s license, and lenders may also ask you to provide your Social Security number.Lenders may require borrowers to pledge collateral as a guarantee they will repay the appliance loan. Lenders may also require borrowers to have good credit scores and a low debt-to-income ratio to qualify for an appliance loan.Appliance loans can be secured or unsecured. Secured loans require borrowers to offer an asset or personal property as collateral. Unsecured loans, including signature loans, are not backed by collateral and may be harder to get if you have poor credit.

What Is the Average Cost of Kitchen Appliances?

The average cost of home appliances is $2,175, according to HomeAdvisor data accessed in January 2022. Refrigerators can cost several hundred dollars on the low end and more than $10,000 on the high end. Dishwashers can range from $330 to $1,900 depending on the brand, size, and features.

Price of Kitchen Appliances

Here are the price ranges for various kitchen appliances, according to HomeAdvisor data:
Appliance TypeLow EndHigh End
Stovetop / Cooktop$320$4,030
Kitchen Sink$60$2,000
Here are refrigerator price ranges by size, according to HomeAdvisor data:
Cubic Feet of Space InsidePrice Range

Kitchen Appliance Repair Cost

The cost of repairing a faulty kitchen appliance can range from $50 to $450 in most cases, while the cost of repairing old appliances can run much higher, according to HomeAdvisor. Refrigerators have a 13-year average life expectancy, according to Fixr, a company that researches and publishes data about the home remodeling industry.Replacing a faulty kitchen appliance is sometimes more cost-effective than repairing it, especially if the appliance is more than 10 years old. Repairing old refrigerators can cost up to $1,200, according to Fixr.

How Often Should You Replace Appliances? 

Consumers may consider replacing their appliances once the appliance reaches the end of its useful life. Appliances can last for 10 to 15 years on average with regular use, according to HomeAdvisor.As mentioned above, replacing a faulty kitchen appliance is sometimes more cost-effective than repairing it, especially if the appliance is more than 10 years old.

Factors That Affect the Cost of New Kitchen Appliances

Here are some factors that may affect the cost of new kitchen appliances:


High-end kitchen appliance brands generally cost more than budget brands. For example, kitchen appliances under the Miele, Liebherr, and Dacor brands may cost thousands of dollars, while similar appliances under the Haier, Insignia, and Frigidaire brands may cost hundreds of dollars.


High-quality appliances generally cost more than similar appliances of lower quality. Consumers can rank appliance quality based upon their user experience. For example, J.D. Power’s 2021 U.S. Appliance Satisfaction Study is based upon 21,477 evaluations from customers who purchased home appliances.Samsung ranked the highest in customer satisfaction among cooktops in the 2021 J.D. Power study, while Frigidaire ranked the lowest. Samsung’s high-end cooktops generally cost more than Frigidaire’s high-end cooktops. 

Energy Efficiency

Energy Star-certified appliances meeting strict energy efficiency requirements set by the U.S. Environmental Protection Agency generally cost more than their noncertified counterparts.Energy Star-certified appliances consume less energy than their noncertified counterparts and therefore can help consumers save money on their energy bills.


Some gas or electric utility companies may offer rebates up to $75 for customers who purchase Energy Star-certified refrigerators. Energy Star-certified appliances can be $30 to $200 more expensive than their noncertified counterparts, according to HomeAdvisor.

Supply & Demand 

Bottlenecks in the supply chain and high demand for kitchen appliances can lead to soaring prices for these items. Consumer Price Index inflation data show the price for major appliances, including refrigerators, stoves, ovens, and microwaves, increased 8.4% from December 2020 to December 2021.

Other Ways to Finance the Purchase of Kitchen Appliances 

Here are some of the ways consumers can finance the purchase of kitchen appliances:

Credit Cards

Borrowers may use credit cards to finance the purchase of kitchen appliances. Credit cards are a revolving line of credit allowing cardholders to make transactions up to the card’s credit limit.Credit card companies may offer an interest-free grace period on new purchases. Consumers with good credit may qualify for a credit card that offers 0% interest on purchases for a 21-month promotional period. 

Personal Lines of Credit 

Borrowers can use a personal line of credit to finance the purchase of kitchen appliances. Personal lines of credit are revolving forms of credit similar to credit cards. The personal line of credit allows borrowers to withdraw funds up to a set limit for personal spending.Borrowers can repay their personal line of credit debt balance on a flexible timeline with minimum monthly payments or greater.

Personal Loans

You may finance the purchase of kitchen appliances with a personal loan. The purpose of a personal loan is to provide borrowers with a lump sum of money and the freedom to spend it on virtually any personal endeavor, such as debt consolidation or buying a new refrigerator.The personal loan impact on your credit score could be negative if you miss payments and positive if you make consistent payments on time.The advantages of using a personal loan over revolving credit are the personal loan can provide borrowers with a lump sum of cash, lower rates of interest, and a predictable repayment schedule.

Home Equity Loans

Home equity loans can provide homeowners with a lump sum of money to use for kitchen remodeling. Kitchen remodeling projects can exceed $30,000 and may include the purchase and installation of new appliances.These loans allow homeowners to borrow against the equity of their home as collateral. Some lenders may allow you to borrow up to 80% of the equity in your home.

In-Store Financing

Retailers may offer in-store financing to help you pay for the cost of buying, delivering, and installing a kitchen appliance. Some retailers may allow you to make interest-free monthly payments over a six-month period.

The Takeaway 

Every home needs a kitchen, and the kitchen needs appliances to be complete. Remodeling a kitchen can cost more than $30,000, while buying individual appliances can easily cost hundreds or thousands of dollars.When you need to borrow money, Lantern by SoFi can help you explore multiple personal loan options. Just provide basic information about yourself and the loan you need, and Lantern can guide you in the process to apply for a personal loan with the lender of your choice.

Frequently Asked Questions

How much does a set of kitchen appliances cost?
What is the average cost of kitchen appliances?
How often should you replace appliances?
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Photo credit: iStock/Iuliia Zavalishina

About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and currently serves as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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