Why personal loans are popular during festivals
Festivals have an associated cost of new clothes, gifts, travel, home decor, and entertaining visitors. While these costs add to the celebration during the season, they can be a cause of financial stress if not budgeted for. Personal loans are becoming increasingly popular for festival spending as they are unsecured, easily available, and disburse rapidly. Since the majority of lenders offer seasonal deals, the borrowers get to borrow at favourable interest rates, which is an effortless source of finance.
Simple availability and flexible usage
Unlike all other loans, personal loans don't require any collateral, hence are available to borrowers of every kind. Banks and fintech portals now provide instant approval, which means that the money is credited within a matter of hours. The liberty allows you to compare various festival expenditures without having to restrict the use of money. While buying gadgets during Diwali, or making holiday arrangements during Christmas or Eid, the loan amount can be re-set based on your festival needs.
Manageable repayment options
One of the important advantages of festival expenses through personal loans is the easy repayment in instalments. The borrowers are able to opt for a repayment period that extends from 12 months to 60 months as per their convenience. Many lenders provide EMI calculators to evaluate affordability before availing the loan. Some financial institutions also permit part-prepayment or foreclosure at low costs, offering higher flexibility to borrowers to manage their repayment schedule.
Keeping borrowing under control
Though personal loans may definitely bring down festival expenditure, one must not go overboard. The borrowers must calculate their repayment ability prior to application so that the EMIs do not reach above 30–40% of the monthly income. Festival shopping under borrowings need never be done at the expense of long-term targets such as savings, investment, or emergency corpus. Similar interest rates, processing charges, and terms and conditions among lending institutions can also reduce borrowing cost.
Making memories with no regret cost
Parties must be enjoyable, and financial pressure can drop rain on the parade. Personal loans, responsibly, can make priceless memories without hurting your pocketbook. The secret is to borrow when necessary and pay as agreed. A festival loan, responsibly used, can address short-term cash needs and allow families to celebrate rituals, closeness, and happiness without a nagging headache.
FAQs
1. Are festival personal loans distinct from other personal loans?
No, they are same but the lenders can give festive discount, low interest rate or cashback during the festival.
2. Can I prepay my festival personal loan?
Yes, prepayment or foreclosure is allowed by all lenders, though some of them charge a small amount of money. Always check the terms while borrowing.
3. How much loan amount should be borrowed towards festival expenses?
Take only such amount as is needed by you and can be repaid through EMIs without disrupting your regular financial commitments.
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