Following are the positive effects to take a personal loan during the festival:
Flexible end use
Not like a home loan or an auto loan, there's complete flexibility on spending money availed from a personal loan. you'll be able to use the personal loan during:
Karvachauth: To arrange an elaborate dinner for your partner or get a pleasant gift for them.
Dhanteras: To shop for gold and silver jewellery, silver utensils, physical science, car, etc.
Diwali: To renovate your home, get durable goods, get gifts for family and friends, decorate your home, get pooja-related things, get new garments, etc.
Bhai Dhooj: to shop for a fashionable gift for your siblings or to give them money, etc.
High loan amount: Ranging from Rs. 25,000, banks provide a personal loan that goes up to Rs. 40 lakh. Therefore, with one personal loan, you'll be able to deal with varied personal expenses.
Collateral free: A personal loan is an unsecured loan and therefore you won’t need to undergo any further stress of keeping collateral with the bank throughout the festive season.
Repayment flexibility: With a Bank of Baroda personal loan, you get the flexibility to repay your loan. The tenure to repay a personal loan sometimes varies from twelve to sixty months and might be determined by you as per your repayment ability
Easy to apply: With banks getting digitized, you'll be able to apply for a personal loan online from the comfort of your home or workplace. Also, you don’t ought to visit a bank even for documentation as you'll be able to transfer all the documents on-line and when approved, the amount gets disbursed to your account directly.
Attractive rate of interest: Personal Loan Interest rate starts from ten to 99%. However, a charge per unit offered to a person by the bank depends on his credit score, age, income, etc.
Things to think about at the time of Borrowing a personal Loan throughout festive Season
Maintain your credit score
Most lenders prefer people having a credit score of 750 or higher. If your credit score is below 750, your application could get rejected. Therefore, it's necessary to own a healthy credit score, if not, take your time and improve it before you apply for a personal loan.
Don’t over-borrow
Continuously bear in mind to not get over-excited with engaging offers or festive mood and borrow quite needed. a private loan comes with a rate of interest and different charges like process fee and borrowing more than needed could cause a debt trap as you may fail to repay the loan amount.
Check your eligibility
Check that to see your loan eligibility before applying for a loan. after you apply without checking your eligibility and your application gets rejected, your credit score would be badly impacted and you may not be able to apply for a loan once more for some time.
Compare lenders
Different lenders give several engaging offers for salaried people and self-employed professionals throughout the festive season. Take your time and compare personal offers by numerous lenders and select the simplest one as per your demand and repayment ability.
Do not apply with multiple lenders:
Applying with numerous lenders quickly would possibly cause the rejection of your application as each time you apply for a personal loan, it gets recorded in your credit report as hard inquiries and can be visible to all or any lenders willing to see your credit report. Therefore, you would possibly appear to be credit hungry to the loaner and he might reject your application.
Conclusion
Availing of a personal loan throughout the festive season could be a smart choice and you get to get pleasure from the festivities without any money constraint. However, borrow smartly and guarantee to repay the loan on time. A simple and convenient method is to avail of a personal loan because it is applied on-line with minimum formalities and once approved; the amount gets disbursed to your account quickly.
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