Festive season has arrived and bearing expenses for Karvachauth, Dhanteras, Diwali and Bhai Dhooj in a single month might be too much for your savings. What do you do in such a situation? A simple and convenient way is to avail a personal loan as it can be applied online with minimum formalities and once approved; the amount gets disbursed to your account quickly.
Why Should You Take a Personal Loan This Festive Season?
- Flexible end use: Unlike home loan or a car loan, there is complete flexibility on spending money availed from a personal loan. You can use the personal loan during:
- Karvachauth: To plan a fancy dinner for your partner or buy a nice gift for them
- Dhanteras: To buy gold and silver jewelry, silver utensils, electronics, car, etc.
- Diwali: To renovate your home, buy consumer durables, buy gifts for family and friends, decorate your home, buy pooja- related items, buy new clothes, etc.
- Bhai Dhooj: To buy an expensive gift for your siblings or to give them cash, etc.
- High loan amount: Starting from Rs. 25,000, banks offer personal loan that goes upto Rs. 40 lakh. Therefore, with a single personal loan you can deal with various personal expenses
- Collateral free: A personal loan is an unsecured loan and hence you won’t have to go through any additional stress of keeping a collateral with the bank during festive season
- Repayment flexibility: With personal loan you get flexibility to repay your loan. The tenure to repay a personal loan usually varies from 12 to 60 months and can be decided by you as per your repayment ability
- Easy to apply: With banks getting digitalized, you can apply for a personal loan online from the comfort of your home or office. Also, you don’t need to visit bank even for documentation as you can upload all the documents online and after approval, the amount gets disbursed to your account directly
- Attractive interest rate: The interest rate of a personal loan starts from 10.99%. However, interest rate offered to an individual by the bank depends on his credit score, age, income, etc.
Top 5 Bank/NBFCs Offering a Personal Loan
|Particulars||HDFC Bank||Citi Bank||Axis Bank||ICICI Bank||Bajaj Finserv|
|Interest Rate||11.25% to 21.50%||Starting from 10.99%||15.75% to 24%||11.50% to 19.25%||Starting from 12.99%|
|Tenure||12 to 60 months||12 to 60 months||12 to 60 months||12 to 60 months||12 to 60 months|
|Loan amount||Upto Rs. 40 lakh||Upto Rs. 30 lakh||Upto Rs. 15 lakh||Upto Rs. 20 lakh||Upto Rs. 25 lakh|
|Processing Fee||Upto 2.50% of the loan amount||Upto 3% of the loan amount||2% of loan amount plus GST||Upto 2.25% of loan amount plus GST||Up to 3.99% of the loan amount|
|Apply Now||Apply Now||Apply Now||Apply Now||Apply Now|
Things to Consider While Borrowing a Personal Loan During Festive Season
- Maintain your credit score: Most of the lenders prefer individuals having a credit score of 750 or above. If your credit score is below 750, your application may get rejected. Therefore, it is necessary to have a healthy credit score, if not, take your time and improve it before you apply for a personal loan
- Don’t over borrow: Always remember to not to get carried away with attractive offers or festive mood and borrow more than required. A personal loan comes with an interest rate and other charges like processing fee and borrowing more than required may lead to debt trap as you might fail to repay the loan amount
- Check your eligibility: Make sure to check your personal loan eligibility before applying for a loan. When you apply without checking your eligibility and your loan application gets rejected, your credit score would be badly impacted and you might not be able to apply for a loan again for sometime
- Compare lenders: Different lenders provide many attractive offers for both salaried individuals and self- employed professionals during the festive season. Take your time and compare personal offers by various lenders and choose the best one as per your requirement and repayment ability
- Do not apply with multiple lenders: Applying with various lenders at once might lead to the rejection of your loan application as every time you apply for a personal loan, it gets recorded in your credit report as hard enquiries and will be visible to all the lenders willing to check your credit report. Therefore, you might seem to be credit hungry to the lender and he might reject your loan application
Availing a personal loan during the festive season is a good option and you get to enjoy the festivities without any financial constraint. However, borrow smartly and ensure to repay the loan on time.