Why You Should Avail Personal Loan For Festivals
Everyone wants to enjoy the holidays in a big way. This is because these occasions allow families to get together and make memories. At the same time, it is very important to have the financial backing to pay for our wonderful parties. So, in case you haven’t saved ample money for the celebrations, you can get a personal loan, which will help you pay for everything you need for the celebrations.
Festival loans don’t need collateral and don’t have to be paid back immediately. Borrowers use these loans to buy items like electronics, furniture, and other goods. The fact that people can get loans for smaller amounts is making more people look for credit each year.
Features of Personal Loans For Festivals
- There are no hidden expenditures or administrative fees. Low processing fees are charged. And there is no prepayment penalty.
- The amount you can borrow is determined by your income and repayment ability. The smallest loan amount under this scheme is Rs. 5000/-. And the highest is four times your net monthly income. The maximum amount that can be borrowed is limited to Rs. 50,000/-.
- Offering competitive rates.
- There is little documentation needed.
Reasons To Select A Personal Loan This Holiday Season
Even though there are many benefits to getting a personal loan, here’s why you should choose them for festivals.
- High Personal Loan Amount
Loans of up to Rs. 25 lakhs can help make the holidays more fun and exciting. You can also pay for many holiday expenses for yourself and your family with a single loan.
- Flexibility
After you get your loan, you can use the money however you want during the holiday season. You can also go beyond choosing creative and unexpected gifts for your loved ones.
- Minimal Interest Rates
One of the main reasons why personal loans are so popular during festivals is that they have low-interest rates. Rates on personal loans can be as low as 12% per year, and they can be paid back in easy-to-manage instalments.
- No Security is Needed
One of the main reasons people are choosing personal loans is that they can get one without any kind of collateral. Since personal loans are unsecured, you don’t need to put up any security, collateral, or guarantors to get one. This is not the case with a secured loan used to buy something big. When deciding whether to give you a personal loan, the only thing that matters is how quickly you can pay back the money.
- No Limitations On Final Usage
One of the benefits of personal loans is that they can be employed to pay for purchases. Personal loans don’t have this limitation either, unlike housing loans and loans for cars.
A personal loan can pay for things like vacations, home improvements, new furniture and appliances, a wedding, unexpected medical bills, school, the purchase of a used car, etc. So, in contrast to a housing loan for buying a house, and a car loan which is specific to a car, a personal loan can meet any of your financial needs.
- Adjustable Terms For Repayment
The average time to pay back a personal loan is between 3 and 60 months. You can choose the length that works best for you. It’s easy to pay back a loan right away. With features like flexible payment terms and low EMIs, it’s easy to pay back a loan.
Eligibility Requirements For Festive Personal Loans
A monthly income of at least Rs. 3000 is necessary. While determining the loan amount, your spouse’s salary may also be taken into account. They are, however, required to get the loan guaranteed. As an alternative, they can also apply for a joint loan.
- A working person having a minimum of 2 years of service in PSUs, the government, public limited institutions/companies, etc.
- A person who is a recipient of income from a verified source. These sources include government interest, NSCs, TDRs, or a person with a pension.
- A person who is self-employed and possesses a minimum of 3 years of experience is eligible for personal loans.
Festival Loans Interest Rates
Festival loans have interest rates that range from 6.9% to about 9% per year, depending on how much you borrow. The processing fees aren’t too high, coming in at just 1%. There have never been penalties for paying off festival loans early.
Required Documentation For Festival Personal Loans
- If you are a professional or work for yourself, you must show proof of your official address. This can be a lease deed, a bill related to your telephone, or a certificate for a store or business.
- Additionally, you must present your Income Tax Returns (ITR) for the last two years.
- For those who get a salary, submission of a salary slip along with Form 16 is required.
- Photo the size of a passport.
How Do I Apply For A Festival Loan?
There are different ways to avail of such a loan. But the easiest and fastest way is to do it online. You can apply for this kind of loan on the lender’s website, upload the necessary documents, and check the application status online.
Use an EMI calculator to figure out how much you will have to pay before you apply. This calculator can be found on the website of the lender or a third party. You can use the EMI calculator by entering the loan amount you need and your desired tenure. This makes it easier to figure out how to pay off debt.
Conclusion
Personal loans are one of the most common ways for people to get money. There are a lot of good things about such loans. This includes not having to put anything up as collateral, getting faster approval, attractive interest rates, etc.
Additionally, both salaried workers and people who work for themselves can leverage the benefits of such loans.
To learn more about personal loans for festivals, you can check out Piramal Finance for similar blogs. You may also take a look at the products and services they offer.