Planning Big Purchases This Festive Season? Here's How a Personal Loan Can Help

With the festive season around the corner, the market is ready to extend discounts and offers to assist consumers in making their long-awaited purchases. However, festive seasons are also marked by multiple other expenses, including decorating, renovating, etc. Taking a personal loan can be a smart decision to cover all expenses. Most lenders in India run special festive loan offers such as concessional interest rates, waived processing fees, etc., providing borrowers an opportunity to take a personal loan for big purchases.

Get Cashback of ₹ 500^* on Loan Disbursal

Valid till 31^st August '26 *T&C Apply

Instant Personal Loan

Get up to ₹50 Lakhs starting at 9.99%

By submitting this form, you have read and agree to the Credit Report Terms of Use, Terms of Use & Privacy Policy

Google Play Store

4.5_/5

15.6L Reviews

6cr+Satisfied Customers

30+Lending Partners

₹65k Cr+Loans Disbursed

Wide Choice

Curated offers from 30+ lenders

Quick Disbursal

Money in your account instantly

SmartMatch

Offers ranked according to eligibility

Digital Process

Hassle-free & paperless

Why Festive Expenses Can Stretch Your Budget

Festivals can swell up your expenses. A personal loan can help you cover these expenses without impacting your savings. A few common festive expenses include:

Home renovation and interiors: Many get their home repainted or interiors redone during the festive season.
Electronics and appliances: Multiple retail shops and online platforms offer huge discounts on electronics and appliances, making it an ideal time to purchase them.
Jewellery and shopping: Buying jewellery and new apparel are considered auspicious during the festive season.
Travel and family celebrations: Festivals are a perfect time for family and friends to celebrate together.
Other large one-time purchases: Many families also consider making high-value purchases owing to the festive offers.

Features of Festive Personal Loan Offers

Lenders in India usually run limited-period personal loan offers for individuals. A few of the common features of these personal loans are:

Special Interest Rates: Many lenders offer festive special personal loans at special interest rates that can be lower than the usual rate. This can help borrowers borrow at a lower cost.
Waived Processing Fees: Lenders often waive processing fees for special loans during the offer period, reducing the cost of the personal loan for borrowers. This is also a limited-period offer.
Cashback: Few lenders or digital lending platforms offer cashback on personal loans during the festive season.
Special Gifts: A few lenders offer gift vouchers, rewards, or valuable merchandise under their festive personal loan schemes.

When Does a Personal Loan Make Sense?

While the personal loan offers during the festive season can be tempting, one must only borrow if there is an actual need. Borrowing just based on eligibility can lead to financial stress in the long run. You can apply for a personal loan online during the festive season in the following situations:

You have a planned, high-value expense and want to capitalise on the festive offers
You are falling short of savings for the purchase
Your debt-to-income ratio (including that of the prospective loan) stays below 50-55%
You don't want to deplete your emergency savings

What Can You Fund With a Personal Loan?

Home Upgrade

Furniture, appliances, renovation, or repairs

Festive Shopping

High-value purchases that exceed your immediate budget

Travel

Flights, accommodation and other planned travel expenses

Family Events

Wedding, celebrations, or other major family occasions

Big-Ticket Purchases

Electronics, gadgets and other expensive items

How Much Should You Borrow?

One important thing to keep in mind while taking a personal loan is to borrow only the amount needed and not the amount offered. This helps you to maintain repayment affordability throughout the loan term. Taking more than what is required can increase your cost of credit and strain your finances.

To choose the right loan amount, you can follow the tips mentioned below:

Use a personal loan EMI calculator: Using a personal loan EMI calculator will help you decide the EMI that you can comfortably pay without any burden. To understand your ideal EMI, calculate your EMI using different combinations of loan amount and tenure.
Factor in existing debt: While deciding your EMI, consider existing debt. Add all your obligations to see whether the income left will be enough to comfortably cover all expenses. Use a Personal Loan Eligibility Calculator to understand your affordability.
Consider Expenses: While choosing a loan amount, make sure to leave room for regular expenses and emergencies. Keeping your debt below 50-55% of your income is considered ideal.
Compare Offers: Comparing personal loan offers can help you choose the best terms and benefits.

Sample Calculation

The table below will help you understand how festive personal loans differ from regular personal loans in terms of savings.

Assumption:

The lender has waived processing fees on personal loans as a festive offer

Particulars	Regular Personal Loan	Festive Personal Loan
Loan Amount	Rs. 5,00,000	Rs. 5,00,000
Processing Fee (2%)	Rs. 10,000	Rs. 0
GST on Fee (18%)	Rs. 1,800	Rs. 0
Total Upfront Charges	Rs. 11,800	Rs. 0
Amount Received in Bank Account	Rs. 4,88,200	Rs. 5,00,000

You will save around Rs. 11,800 on festive personal loans as compared to regular personal loans if the processing fees are waived.

Disclaimer: The example is for illustrative purposes only. Actual results may vary. Please contact the lender for exact terms and offers.

5 Things to Check Before Taking a Festive Personal Loan

You should go through a few things before finalizing a personal loan offer. Comparing offers can help you get the best rate and save you a significant amount. A few things to consider are mentioned below:

Interest Rate: Compare interest rates across all eligible offers to choose the best loan with the lowest interest rate.
Processing Fee: Look for lenders running festive offers with waived personal loan processing fees.
Loan Tenure: Choose a lender offering a flexible repayment tenure, enabling you to choose a tenure as per your repayment capacity.
Prepayment/Foreclosure Charges: Consider prepayment and foreclosure charges of different lenders if you are planning to close your loan early.

Consumers should stay prudent in making their purchases during the festive season. Loan eligibility should not be confused with loan affordability, as failure to repay in the future can cause damage to the credit history. Smart planning and research can help get the best offer, but it should be backed by practical financial goals too.

Why Choose Paisabazaar?