Festive season is a time when you tend not to think before loosening your wallet, more so during Diwali. It is at that time when you might think of taking a personal loan. Personal loan is an unsecured loan which helps us meet any immediate financial requirement. With minimum documentation and easy processing, the loan amount gets transferred into your bank account in no time. Diwali is a time when most people indulge in expensive purchases as it is considered to be an auspicious time of the year. Therefore, banks and lenders also come up with special loan discounts such as low interest rates, etc.
However, before giving into the temptation of Diwali special personal loans, remember to keep some important things in mind.
The festival season is a time when you may be in the mood for shopping impulsively. However, when it comes to taking a personal loan to purchase something big, you might want to think again. Although lenders may be showering you with the best loan deals available in the market, you will have to sit back and think if you genuinely need to take the loan and add to your financial burdens, for that momentary pleasure.
You may have already planned your budget for the year and the bank might call and offer you the festival special rate on personal loans. The low interest rates and other attractive discounts may seem tempting but you will have to pay monthly EMIs towards the loan, which may create an imbalance in your financial planning. As Diwali is towards the end of the year, taking up an additional loan may add to your debt.
Read fine print in detail and look for any hidden charges along with the loan. Additional charges may not be mentioned to you, however may be present in the documents. This may increase the overall cost of the loan. Understand all terms and conditions of the loan prior to making a decision.
Taking a personal loan for purchasing an item would mean that the loan is directly credited to the sellers’ account. In this case, the financing institution can visit you to verify the product purchased using that loan. It is a good idea to first check if the brand and retailer are tied-up with the lender.
Who can resist paying in installments, that too without interest? Some Diwali special consumer loans do offer you interest-free EMIs that may seem like a great deal. However, you should not forget the processing fee associated with the loan, which is either fixed, or a certain percentage of the loan amount.
Taking up an unplanned personal loan only because it is being offered to you on a festive season may not be that bright an idea. You must think if you actually need the product for which you want to avail a loan, or is it just the occasion tempting you to indulge in an unnecessary purchase.
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