Personal Loan for Festival: Why You Should Avail Loan This Festive Season?

Festivals are around the corner, and as they are near, the excitement and joy increase likewise. There would be a variety of cuisines, new clothes, lights, colours, fun and frolic all around. With all of that comes the expenses like renovating your house or financing a wedding. And to cover that up, you might need a festive loan that will give you all the financial backup. 

If you have a huge wedding coming up, or you have decided to renovate your property, and you lack finance for it, all you need is a little financial hell. An instant personal loan can do that for you this festive season. It will leverage the whole process and will fulfil your dream of making this festival a memorable one. 

This article is all about instant personal loans, their role in festivals, the benefits that can be derived from them, and the reasons why you should opt for them in the first place. 

What is a personal loan in the context of this festive season? 

A loan that is applied to meet personal needs like buying a house, financing a wedding, planning a trip, or covering expenses of higher education is called a personal loan. In this case, the lender lends a specific amount of money to the borrower in exchange for extra charges by adding an interest rate. This interest rate is applied to the principal amount, and the borrower has to pay that back within a set period in the form of instalments. 

Out of a variety of purposes for which an instant personal loan is applied, covering the festival expenses is one of them. Festivals are not only moments of joy and pleasure. They also demand a huge amount of money sometimes. A festive loan for that purpose can be rightly taken to emphasise more on the festive needs. 

What are the benefits of applying for a personal loan during the festive season? 

There are multiple benefits of applying for a festive loan this festive season:

• Low-cost EMI:

The monthly instalments of the festive loans are quite on the lower side and are easily payable. Even if the amount of your instalment depends on your principal amount and the loan tenure, the EMI is still going to be less. You don’t have to budge into your monthly expenses to cut out extra expenses. 

• Collateral-free:

Personal loans are popularly known as unsecured forms of loans because these types of loans do not require any collateral or security deposits. So, while applying for an instant personal loan for festive purposes, you don’t have to pledge any of your assets to help you get a loan. Banks never ask you to state the reason for which you are applying for the loan. 

• Low rate of interest:

Interest rates on personal loans are quite low, and you can easily pay them off eventually. In India, most banks charge an interest rate of about 8.5 per cent per annum to 35 per cent per annum. The interest rate mostly depends on your credentials and the offers that the bank provides to its customers. 

• Flexibility:

Flexibility in most of the festive loans is also very high, which means you will have tailoring options to change and alter your loan options. On top of that, you can decide the tenure of repayment according to your convenience. If you have a clean track record and good credit history, banks will offer you better tailoring options. 

• Building credit score:

If you take an instant personal loan and repay all its instalments on time, your credit is going to build up into a fair number. It will also help you create a good loan track record for the future. In the future, if you ever think of going for another personal loan, this track record is going to help you get better offers. 

What are the eligibility criteria to apply for a personal loan to meet festive expenses? 

Here are the eligibility criteria you should be having to apply for a festive loan to meet all your festival-related expenses:

• You must have covered 21 years of age to get a festive loan for the festive season. The upper limit age group varies between 60 years to 65 years of age for a festive loan. 

• You should either be a jobholder in any private or government institution, or you should be a self-employed individual. 

• Your monthly salary should be between 25 thousand to 30 thousand if you are a salaried individual who is seeking an instant personal loan. 

• In the case of self-employed individuals, the annual income should be 5 lakhs per annum to be eligible to apply for this loan. 

• Your work experience should be at least one year if you’re a salaried individual. In case you are self-employed, your work experience should be a minimum of two years. 

• You should have a credit score of 750 or more to apply for a festive loan for the festival season. 

Conclusion:

Festivals come every year at a specific time, and we all want to make them as memorable as possible. And managing all that expenses like jewellery, new clothes, renovation, etc., with a meagre capital is hard. So, to cover all the expenses of a festival, some amount of financial assistance in the form of a festive loan can be applied. 

If you have come this far and you loved reading about festive loans, you should also check out Piramal Finance. Not only festive loans, but they also have many write-ups regarding different investment schemes, financial options, and other types of loans.