Christmas Day and New Year are around the corner. It’s the time when families and friends reunite, they share their happiness and best wishes through gifts or sometimes by planning a vacation together. Needless to say, whether it is gifting, planning trips or travelling to your hometown, it requires a good amount of money. Our savings are sometimes not enough to finance such expenses. In such situations of a cash crunch, you always have the option to opt for a personal loan. Personal loans are one of the best ways to fund your festive celebrations.
Reasons which make a personal loan best for winter festival celebrations
- Flexible tenure: The tenure of a personal loan goes up to 7 years, therefore, you have the flexibility to choose the tenure which suits you the best. If you opt for a longer tenure, your EMIs will be lower and vice-versa. You can use online EMI calculator to calculate the EMIs before choosing the tenure.
- Multipurpose loan: A personal loan can be used for several purposes such as paying off for marriage, studying abroad, for medical emergencies or debt consolidation. The lender never puts a question on the usage of the loan amount.
- No collateral required: In order to avail a personal loan, you are not required to pledge any collateral or security. Hence, it is quite easy to get a personal loan.
- Hassle free application: The application process of a personal loan is an easy one. In order to apply for a personal loan, you are no longer required to visit the office of the lender. The online application has made the loan process much simpler than one can even imagine. A personal loan aspirant can apply for an online personal loan through mobile or computer from any corner of the world.
- Ease of repayment: The personal loan repayment is done in easy installments which are auto-debited from your bank account. To enable this facility, you have to sign the loan agreement which says that you allow the lender to deduct a certain amount of money from your bank account on a particular day of every month till the repayment of the loan is done in full.
- Quick disbursal: If you have a good credit score and you meet the eligibility criteria then you can get a personal loan in 72 hours time. In fact, some of the banks provide the facility of online approval of personal loans for existing customers.
- Tax benefits: If you use the personal loan for the renovation of house, construction or making down payment for the house, you can get the maximum tax deduction of Rs 2 lakh under Section 24B. Please note that you would be required to provide enough documents to prove that the money has been utilized for that purpose only.
Before you apply for a personal loan this festive season, you need to take care of some points so that the best out of a personal loan can be enjoyed. The first thing to consider is your repayment capacity. You must always apply for the loan amount that you can comfortably service. Secondly, you should check your credit score before you apply for the loan. You should apply for a personal loan only if your credit score is more than 650. Thirdly, you should have research on the lenders so that the best rate on a personal loan can be found. You should compare the interest rates so that you can find the best lender to apply for your personal loan.