Most Indian companies wait for festival season (around Diwali) to dole out annual incentives and bonuses. Most employees eagerly wait for this season and they plan their large-ticket purchases to coincide with this season.
But what if the amount you receive as bonus is less than what you expected? How ill you go about making that big purchase that you had been waiting for?
Once answer is to postpone the purchase. But this does not work in all cases. There are certain purchases that cannot be delayed any further. In such cases, festival loans can help you bridge the gap.
Most lenders have their own set of eligibility criterias for festival loans. But to attract more and more people, the borrowing rates are kept much lower than regular personal loans (at times even a few percentage points) and additional offers are added for the benefit of borrower. Also the income related criterias are also relaxed for these loans.
Though festival loans are more or less similar to personal loans, there are indeed some points of difference. The amount that can be borrowed is generally limited and much lower than persona loans. Also the repayment periods are not allowed to be very long. Infact, most festival loans are offered for a period of one year.
Most lenders don’t charge any prepayment penalty if you decide to foreclose the loan. Lenders understand that at times people need to wait to get their hands on their annual bonuses and hence, might be in a position to close the loans much before the actual tenure ends.
So as you can see, there is still hope if you want some financial help during this coming festival season. If you are running short of funds that you had expected to receive from you annual bonus, do check out the festival loans that are on offer. It’s possible that you will find one that suits your requirement.