3 Things to Remember While Taking Out a Festival Loan

Festivals bring with them the prospect of good cheer, celebration and joy. India as a country is home to many cultures, and as a result, numerous festivals. Each festival is unique and significant in its own way. When it comes to celebrating festivals, it is often done with a lot of zeal and fervor. Most of us also treat festivals as an opportunity to get together and spend time with our family amid the backdrop of festivities and cheer. However, festivals are not all fun and games. They are also synonymous with gifting and shopping, which brings us to the prospect of heavy spending. Visiting your family and friends without a proper gift is almost unheard of. This is why many salaried professionals opt for Festival Loans to help them bear the financial load. 

A festival loan is a simple instant personal loan, taken for the purpose of shopping for festivals. There is no special loan that is offered as a ‘Festival Loan’. If you come across offers of festival loans from banks or other loan providers, please be assured that at its core, it is a simple personal loan replete with all the benefits you’d expect out of one. Even then, you cannot sit back and relax once you’ve got yourself a festival loan. We have three pointers that you need to consider while borrowing a festival loan. Read on:

1. Accruing Debt is No Festival

Once you’ve taken out a Festival Loan, be assured that paying off EMIs will become a significant part of your monthly expenses, something that you’ll have to budget for every month, like all your other expenses. So it makes sense to borrow an instant loan only if you need it. Of course, you need to gift your friends and relatives, but you need to look at your own repayment capacity first. Whether it’s an instant personal loan in Delhi or one in Noida, debt is debt. You need to plan for how much you need to borrow before all else. 

2. The Overall Cost is What Matters

During festival season, a lot of banks and non-traditional lenders tend to crowd your inbox with personal loan offers. After planning for your festival shopping, if you do arrive at the decision to borrow a festival loan, look for one that has the lowest overall cost. There might be a lot of special offers as well, including waivers on processing fees, reduced interest rates for the first couple of months, or zero prepayment charges. Take each offer into consideration and see how it affects your monthly EMI payment, before deciding on anything.

3. Never, Ever Default

This is the most basic pointer you need to follow while taking out any loan. Defaulting on personal loan repayments is a big no-no. As if your monthly EMI payments weren’t heavy enough, defaulting on a loan brings with it added expenditure in the form of late payment penalties. Not to mention that your credit score takes a hit as well. This may make it difficult for you to get instant personal loans in the future.

Wrap Up

The above points are the three most basic points that you need to know while taking out any sort of loan, leave alone festival loans. Be it Diwali, Dhanteras, or Christmas, you need to first be sure about your need for a loan in the first place. Once that is set, all you need to do is look up and read up on reputable personal loan companies that offer the most affordable loans.


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