Festivals in general are considered as auspicious occasions to start a new business or make new purchases. Therefore, people deem it appropriate to invest in a new home, or buy new electrical appliances, new vehicles, gifts, apparel, jewelry and many more products during festivals.
However, all of this comes at a price and you are forced to dip into your lifetime savings to make such purchases, savings which are meant to cover any financial crisis you may face in future. Instead, a personal loan from a bank or Non-Banking Financial Company (NBFC) may prove to be a perfect solution to meet your festive expenses.
How can personal loan ease your financial burden?
No restrictions on end use
Lenders do not ask the end use of the personal loan while lending. Hence, you can avail of this loan to buy anything like a new vehicle, new electronic gadgets, gifts or even going for a holiday. You can also avail of a personal loan to renovate your house.
Personal loan, also known as an unsecured loan, doesn’t require any collateral or security against the borrowed amount. However, you need to have a good credit score to get your loan approved.
Flexible repayment plans
You have the flexibility to choose your repayment cycle. Loan repayment tenures range from 12 to 60 months.
Lower rate of interest
Personal loans are available at an interest rate similar to a home equity loan. Interest rate on a personal loan (10.49-19.99% per annum) is much lower than the average interest rate on a credit card that ranges from 2.5 to 3% (per month).
Monthly payment option
A loan helps you to avoid making a huge one-time payment out of your savings. You can pay off your loans regularly through EMIs and withstand any financial pressure you would face otherwise.
Borrowing a loan during festivals reduces the pressure of running out of cash to make new purchases. A personal loan offers many benefits. You can avail of this loan to meet your festive expenses without any financial strain.