Various loans and deals are being thrown our way over the festive season. Are they worth it? Do users truly need them? Folks should not be scared to use their wallets over the festive time for gadgets and other goods. And those unique discounts, incentives, and 0% interest loans entice them even more. Should folks accept or reject these ‘benefits’? Banks provide instant personal loans with diverse EMI choices over different periods. Banks also give loans with 0% interest loans & 0% process charge payment systems.
Advantages of Buying Goods and Services and Getting Loans During Festive Sale
- Products on Sale:
As said before, all offline and online stores provide festive time deals and discounts. Most banks and Non-Banking Financial Companies (NBFCs) reduce processing costs and interest rates. As a result, if buyers have been thinking of buying a high-priced item or getting a large sum loan, now may be the time to do it.
- Cashback Deals:
Many merchants provide rewards on credit and debit card payments. In general, online merchants provide tempting cashback deals on co-branded bank cards.
- Reduced Interest Rates:
Many major banks and NBFCs offer cheaper interest rates on home, automobile, and personal loans. This is due to the strong demand for these loans during festivals when buying costly and vital items is deemed lucky. Banking firms attempt to acquire as much market share as possible by taking benefit of growing needs by offering favourable interest rates.
- Process Fees are Reduced:
Another hardship for debtors is the processing fee, which banks & NBFCs charge all across the festive season. The processing fee might vary from 0.25% – 6% of the personal loan sum based on the kind of loan. Some banks and credit card firms also impose flat process costs that are the same for all users, despite of loan size. If the process fee decrease is large, it might reduce the overall loan outlay.
- Instant Acceptance:
As people want to get products on important days, such as Laxmi Pujan, Padva, and Dussehra, banking firms aim to expedite the loan approval phase.
- Improves Credit Score:
Taking out credit card EMIs & loans and returning them on time can help people enhance their credit scores. Users may utilise it to create their credit profile if they are trying to boost their credit score or develop a credit history and receive great offers on lines of credit.
Check the Eligibility for a Personal Loan
The first step in asking for an instant personal loan is to see whether the skills fulfil the qualifying needs. Today, asking for a festive loan has become much easier since eligibility rules have been relaxed. This relaxation made financing easier for folks of all income levels.
There may be small changes in eligibility rules based on the loan source. The basic personal loan eligibility rules are shown below.
A paid individual must be between the ages of 21 and 60. These people must have a monthly salary of at least Rs. 15,000. Individuals are required to be engaged at their present job for at least 6 months.
Self-employed folks must be between the ages of 22 and 65. They must have a monthly salary of at least Rs. 15,000. They must have one year of job skills.
As said before, loan ability is determined by factors such as age, level of income, job stability, etc. Keeping a good CIBIL score is one way to boost eligibility. The CIBIL / credit score, which varies from 300 – 900 points, shows the credit history. The higher the credit score, the easier it will be to get a festive loan. Folks may raise their CIBIL score by showing a stable lending record, making regular repayments and not overspending.
How to Get a Personal Loan During the Festive Season?
With a slew of festivals coming, markets tend to grow crowded and raise prices to profit from the extra need. Thus, it is great to apply for a personal loan ahead of the festival season to ensure that the funds are issued on time. How can folks ensure their loan form is granted as soon as possible? The first and most key step is to verify personal loan eligibility. Folks may also use the online qualifying tools given by all major loan banks for this aim. Next, they must pick the best bank by comparing and analysing personal loan rates. Finally, it is usually a good idea to keep the papers prepared so that the application phase goes well.
The following papers are needed:
Folks who work for themselves
- PAN Number
- Identity papers like Aadhar cards and voter cards
- Evidence of residency
- Proof of office location
- Proof of income
Folks who are paid
- PAN Number
- Proof of residency
- Employment verification
- Identity verification
When folks are all set for the personal loan, they should go to the bank’s website, phone them, or go to the local branch. Folks may also get a personal loan online and have it granted quickly. To do so, they must complete the request form and provide the needed paperwork. Folks may easily get loans up to INR. 25 lakhs if their request is approved.
Getting an instant personal loan is not a bad idea. It is critical to evaluate how much individuals are saving and to look for any hidden fees. People often buy due to a sale on the goods or an EMI option offered rather than because they need it. Those who buy for joy rather than need do not save money. Folks don’t think of how large the discount or refund is. As a result, it is vital to analyse their desires and needs before taking benefit of festive deals. Instead of spending, this sum might be properly invested in short-to-medium-term monetary assets.
Piramal Finance has similar blogs for folks to help them get a personal loan. Give the blogs a read and check out the other services they offer.