The festive season brings joy, celebrations, and increased expenses. Taking an online personal loan during festivals can be advantageous due to special offers, reduced interest rates, and promotional schemes. This guide explains why festival timing matters for personal loans and how to select the right loan.

Festival Season in India and Special Loan Offers

The festive season in India is not just about celebrations and traditions. It’s also when financial institutions roll out their most attractive deals. Applying for an online personal loan through Airtel Finance during festivals often comes with significant advantages that aren’t available year-round.

Financial Benefits of Festive Season Loans

During festivals, lenders compete aggressively to capture market share, resulting in substantial benefits for borrowers.

Lower Interest Rates

The personal loan interest rate tends to drop by 0.5% to 2% during these promotional periods. For example, a loan that typically carries a 14% interest rate might be available at 12.5% or even lower during festive promotions.

Consider this comparison:

Reduced Processing Fees

Processing fees can significantly add to your loan cost. During festivals, these fees are often discounted or waived entirely.

• Regular processing fee: 2–3% of the loan amount
• Festive offer processing fee: 0–5% of the loan amount
• Potential savings on a ₹3 lakh loan: Up to ₹9,000

Special Repayment Terms

Festive season loans often come with flexible repayment options that aren’t available during regular periods:

1. Extended repayment tenure options
2. Initial payment holiday periods
3. Step-up EMI facilities for salaried professionals
4. Customized repayment schedules

Managing Festive Expenses with Personal Loans

The Indian festive season brings multiple unavoidable expenses that can strain your monthly budget. An online personal loan can help manage these expenses effectively.

Home Renovation and Decoration

Many families renovate their homes before festivals like Diwali or Durga Puja. The average cost for festival-related home improvements ranges from ₹50,000 to ₹2 lakh, depending on the scope of work.

Wedding Season Expenses

The wedding season often coincides with festivals in India, creating a double financial burden.

Travel and Vacation Plans

Many families use the extended festival holidays for travel. A personal loan can help plan a better vacation without compromising on quality or experiences.

How to Choose the Right Festive Loan Offer

With numerous lenders offering festive season deals, selecting the right online personal loan requires careful consideration.

Compare All Aspects of the Loan

Don’t just focus on the advertised interest rate. Consider:

• Effective interest rate (including all charges)
• Processing fees and other charges
• Prepayment penalties
• Hidden terms and conditions
• Repayment flexibility

Check Eligibility Requirements

Before applying, ensure you meet the eligibility criteria to avoid rejection, which can impact your credit score. Most lenders require:

• Age: 21–60 years
• Minimum income: ₹25,000 per month
• Credit score: 700+
• Employment stability: At least 1 year with current employer

Verify Your Credit Score

Your credit score significantly influences the personal loan interest rate you’re offered. Before applying, check your credit score to understand your position. A score above 750 typically qualifies for the best rates.

Consider Digital Loan Platforms

Digital platforms like the Airtel Thanks App offer pre-approved personal loans with instant disbursement, making them ideal for last-minute festive requirements. These platforms often provide special festival offers with competitive interest rates and minimal documentation.

In a Nutshell

The festive season presents a strategic opportunity to secure an online personal loan with favourable terms. With reduced personal loan interest rates, waived processing fees, and special offers, festival-time borrowing can be significantly more economical compared to regular periods.

To make the most of these opportunities, compare offers carefully, check your eligibility, plan your loan amount based on specific needs, and choose a reputable lender with transparent terms. With Airtel Finance, you can quickly check your personal loan eligibility and apply digitally, ensuring you don’t miss out on the best festive season loan deals.

FAQs

1. What documents are needed for an online personal loan during festivals?
   Most lenders require identity proof, address proof, income proof, and bank statements. Digital lenders may require fewer documents during festival promotions, often just Aadhaar and PAN for pre-verified customers.
2. How quickly can I get a personal loan during the festive season?
   Digital lenders offer faster processing during festivals, with disbursals possible within 24 hours. Traditional banks might take 3–5 days despite festive promotions for online personal loan applications.
3. Will applying for multiple personal loans affect my credit score?
   Multiple loan applications in a short period create multiple hard inquiries on your credit report, potentially lowering your score and affecting personal loan interest rate offers.
4. Can I prepay my festive season personal loan without penalties?
   Many lenders waive prepayment penalties during festive offers, but always check the terms. Some may allow partial prepayments without charges after a minimum loan tenure.
5. Are festival season personal loan interest rates fixed or floating?
   Most personal loans come with fixed interest rates, even during festivals. This ensures your EMI remains constant throughout the loan tenure, regardless of market fluctuations.