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Tata Capital > Blog > Personal Use Loan > Why Should You Opt for a Personal Loan This Festive Season?

Personal Use Loan

Why Should You Opt for a Personal Loan This Festive Season?

Why Should You Opt for a Personal Loan This Festive Season?

Yes, the festive season is considered the most auspicious time of the year, felicitous for making new beginnings and investing in fresh ventures. It is a joyful time that ushers in health and prosperity, which is why the demand for various goods and services experience a surge in the market. The spending capacity of people, especially the middle class, also increases due to festive bonuses and lucrative offers given by retailers.

The coronavirus pandemic suppressed much economic activity in 2020, but once again both retailers and lenders are offering attractive offers to get the festive season rolling in full swing. As such, people are looking to invest in vehicles, jewellery, buying a home, and other festival-related shopping.

Due to the increase in prices caused by COVID-19 and the festive season, splurging can bear a heavy weight on your savings. However, personal finance can help you easily tide over this seasonal spending. Read further to know about the benefits of personal loans and how you can avail of a festive loan this season.

Personal loans do not require collateral

The onset of festivals brings with it a rise in the demand for home appliances, investment in gold, property, vehicles and festive apparel. While taking a personal or unsecured loan, you do not need to pledge a guarantee and this becomes a significant advantage. It facilitates people from all income groups to easily avail of the loan and finance their festive purchases. Thus, you can indulge in stress-free shopping.

Manage your extra expenses flexibly

While preparing for festivities, people love to shop due to a variety of lucrative deals and discounts. This unplanned expenditure can run into thousands and affect the budget and savings later. You can avoid this by taking a personal loan as the loan amount can be used as an umbrella to cover all the expenses incurred. Whether you want to buy festive apparel, invest in a vehicle or purchase a home, a personal finance offering can fund any of these requirements.

Moreover, the unplanned expenditure can create problems in the event of a financial emergency. A personal or multi-purpose loan can not only be used for recreational purposes but it can be a lifesaver in an emergency, and can cushion the blow in unfortunate circumstances.

Additional Read: How can a Personal Loan help you manage your Emergency Expenses?

Upgrade your lifestyle

In India, the festive season coincides with the wedding season. A wedding is a lavish affair that requires a significant investment, and a personal loan can help you plan the perfect wedding. It can be used to cover the costs of booking the venue, buying clothes, jewellery, catering, etc. A personal or collateral-free loan can also be used to refurbish your home and facelift its interiors. Apart from this, you can use it to cover travel expenditures or finance a vacation, buy a car or invest in education.

Additional Read: Can a Personal Loan Help you Upgrade your Lifestyle?

Check Your Personal Loan Eligibility

The first step towards applying for a personal loan is to check whether your credentials match the eligibility criteria. Today, applying for a loan has become much easier due to the relaxation in eligibility criteria, which make borrowing easier for every income group.

Usually, there may be some minor differences in the eligibility criteria depending on the loan providing establishment, but the standard personal loan eligibility criteria are given below.

  • Eligibility criteria for salaried individuals

A salaried applicant must be aged between 21 years to 60 years of age. These individuals must have a minimum monthly income of Rs. 15,000 and should be employed at their current workplace for a minimum of 6 months.

  • Eligibility criteria for self-employed individuals

Self-employed applicants must fall between 22 years (25 in some cases) and 65 years of age. They should have a minimum income of Rs. 15,000 per month and should have at least one year of work experience.

As stated above, personal loan eligibility depends on factors like age, income level, job stability, etc. One way to improve your eligibility is to maintain a high CIBIL score. The CIBIL or credit score depicts your credit history and ranges from 300 to 900 points. The higher the score, the better are your chances of acquiring a loan with ease. You can improve your CIBIL score by showcasing a smooth borrowing history, making timely repayments and refraining from over-borrowing.

Additional Read: How to Check if you are Eligible for a Personal Loan in 2020?

How to Apply for a Personal Loan this festive season?

With a flurry of festivals fast approaching, markets tend to get busy and capitalize on the high demand by increasing prices. Thus, it is best to apply for a personal festive loan well in advance before the frenzy of festivals takes over, to ensure that the amount is disbursed on time and you can finance your expenditures easily.

How can one ensure that their loan application gets approved quickly? The first and foremost step is to check your personal loan eligibility. For this, you can also use the online eligibility calculators provided by almost all the leading lending institutions. Next, you have to zero-in on the most appropriate lender by comparing and contrasting personal loan interest rates. Finally, it is always a good practice to keep your documents in order so that the application process happens quickly.

The documents required are as follows:

  • For self-employed individuals
  1. PAN Card
  2. Documents for proof of identity such as Voter card, Aadhar card
  3. Proof of residence
  4. Proof of office address
  5. Income proof
  • For salaried individuals
  1. PAN Card
  2. Residence proof
  3. Proof of employment
  4. Proof of identity

Once you are ready to apply for the loan, you can log on to the lender’s website, contact them via call or visit the nearest branch. You can also apply for an instant personal loan online and enjoy quick disbursal. For this, you need to fill up the application form and submit the required documents. After successful approval of the application, you can get loans up to Rs. 25 lakhs with ease.

Additional Read: How to apply for a personal loan in 5 simple steps?

Ensure Smart Repayment of Festive Loans

A lot of factors determine the ease of repayment. These include your income level, CIBIL score, repayment period, personal loan EMI, etc. While applying for personal finance, it is vital to be aware of these factors to make sure that the repayment is easy and hassle-free.

Nowadays, options such as Flexi EMI are available which allow you to repay the loan at your own pace and increase the EMI gradually as your salary increases. Further, the EMI is also determined by the personal loan interest rate. To encourage loan-borrowing amongst citizens, lenders are now offering some of the lowest interest rates along with other concessions in processing fee, etc.

Additional Read: Have the Personal Loan interest rates gone down this festive season?

The interest rate is subject to change based on external factors such as the economy, lending capacity of the lender and the applicant’s income, credit score and repayment ability. You can calculate the interest rate in advance by using the online interest rate calculator and get an idea about the current ROIs available for a particular sum of money. You can ensure full preparedness by using the personal loan EMI calculator and being aware of the EMI in advance.

Additional Read: How to smartly manage Personal Loan EMIs in 2020

There is no denying the fact that the COVID-19 pandemic has created a lot of trials and tribulations and led to excessive cost-cutting. But with the festive season right around the corner, things are starting to look up again. Many lenders are offering competitive interest rates and concessions in the application process to encourage people to take festive loans and in turn, contribute to the economy positively.

Final Thoughts – Finance Your Festivities with a Personal Loan

 Apart from expenses incurred during festivities, opting for a personal loan helps with preparedness for emergencies. This loan type can help you tide over tough times without worry.

Whether you want to cover the costs of a wedding, invest in a house or a vehicle, or purchase festive apparel, expensive gifts or jewellery- a personal loan is fit to fulfil all these needs. Are you wondering where to get personal finance from? If yes, then your search ends at Tata Capital! We’re here to ensure that you make the most of this festive season without stressing over the expenditures.

Tata Capital offers multi-purpose personal loans starting from affordable interest rates and flexible tenures. You can avail of a minimum loan amount of Rs. 75,000 that can go up to Rs. 25 lakhs. You can even decide the personal loan EMI amount you are comfortable with and do away with the stress of high-value repayment and celebrate the festivals without worry.

Make your loan application process seamless and hassle-free with Tata Capital. We charge a minimal processing fee and assure no hidden costs. You can find a detailed list of the schedule of charges on our website. We require minimal documentation and ensure an easy online application process with a robust after-sales service. So, why wait? Visit our website and enhance your celebrations with our personal finance offerings!

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