It’s that time of year again when there is a flurry of festive activity all around, a time to enjoy with friends and family to create memories. While the company of family and friends is at the heart of the festivities, funding your big celebrations is also a crucial aspect. It’s no surprise that economic activity, including sales of items ranging from clothing to ornaments, is picking up again this season. Many people also make other major purchases like a house, car, or expensive appliances or gadgets around this time with auspiciousness associated with it.
While the festivities require some sort of splurge on your part, your cash flow might not afford you to do it right away. For example, the long-awaited bonus might be delayed, or the payment you were supposed to receive for the last mission hasn’t arrived yet, or you just can’t afford any extravagance right now with your spare cash, but you don’t want to break your savings either.
In each of these situations, a simple and convenient way to finance these expenses is to take out a personal loan. Read on to know the benefits of personal loans and how you can avail the best holiday loan this season.
What is a personal loan?
As the name suggests, this is a loan. The very first differentiator of a Personal Loan, compared to other loans, is that a Personal loan is an unsecured loan, which means that you do not have to provide any collateral or collateral to the lending institution to qualify for this loan.
Second, a personal loan provides complete freedom and spending flexibility to the borrower, as opposed to a home loan or car loan with a specific end use. So you can take out the loan and meet multiple needs, whether it’s shopping for the festivities, getting gifts for the family, or even renovating your home.
Apart from these expenses, a personal loan can also be a lifeline in a medical emergency. If your expenses exceed a specified budget, a personal loan can effectively cushion the blow by covering the expenses. For people struggling with multiple EMIs from different loans, a personal loan can also help consolidate high interest debt like credit card dues. After consolidating the debt, the borrower can then repay a single IME for the personal loan instead of multiple IMEs.
Then there is the convenience. A personal loan is convenient to apply for with an easy loan approval process from the comfort of your home or office. You don’t need to go to an office to get some documentation as you can upload all the documents online and after approval the amount goes directly to your bank account. With a personal loan, you also have the option of repaying your loan according to a pre-established and practical schedule. The repayment term for a personal loan generally ranges from 12 to 72 months and can be chosen based on your repayment capacity.
Things to consider when borrowing a personal loan this holiday season
Before anything else, be sure to verify your eligibility for a personal loan before applying for a loan. If you don’t verify your eligibility and your loan application is rejected, your credit score could be affected. Therefore, a EMI personal loan calculator can be useful to simplify the borrowing process. It can also ensure that you get the best deals available when you apply. Plus, take the time to compare personal loan offers from various lenders and choose a reputable financial institution based on your needs and repayment capacity.
Another important factor to consider is the interest charged by financial institutions on your shortlist. It’s important to stress here that the interest rate is an important factor, but not the only factor you should consider. Also consider other features such as repayment flexibility and other users’ experience with the lender before taking a final call.
Where to get a good deal?
Keeping the above factors in mind, it makes sense for you to consider an online personal loan from a leading financial institution and take advantage of an instant loan for your holiday shopping. With Tata Capital, you can easily avail a loan of up to Rs. 25 lakh at attractive interest rates, starting at 10.99% per annum. With a simple online process, minimal documentation, and easy-to-complete eligibility criteria, you can secure flexible terms of up to 6 years and pay off your EMI personal loan at your ease.
Using a personal loan during the holiday season can be a good option as it helps prepare for emergencies and lets you enjoy the festivities without any financial strain. It can also be a great way to spend without really touching your savings for long-term financial goals. With Tata Capital, don’t let financial troubles get in the way of your celebrations as you can get fast processing loans and tailor-made personal loan deals ideal for financing your various needs.
This article was written by Studio18 on behalf of TATA Capital.