Diwali is the most awaited festival of the year. People are excited about the food, the clothes, and the celebrations. However, this excitement also brings a long list of expenses, which can stress us out as we try to manage these additional festive costs along with the usual ones.
This is where a Diwali loan can help. These loans are a hassle-free and convenient option to get quick financial assistance, especially during festive periods where waiting is not really an option.
Let’s see how this kind of loan can help you manage your expenses, why it is recommended, and how you can apply for it online.
What expenses can a Diwali loan help you manage?
Which Diwali expenses can I cover with a loan? If this is what you are wondering, you will be happy to know that a Diwali personal loan can help cover many Diwali expenses, from decor items to clothes. Listed below are some of the expenses:
Home decoration and repairs: Decorating your home with lights, aesthetic accessories, and showpieces adds a touch of elegance. Without these, it hardly feels that the festive season has begun. Additionally, you may also want to repair a damaged fixture or replace old furniture.- Gifts and festive shopping: Buying clothes, sweets, and gifts for loved ones is one of the best parts about Diwali, isn’t it? You spend time making a list for everyone in the family and your friends, based on their preferences, to make sure they are satisfied with their gifts and, of course, to see those incredibly beautiful smiles on their faces.
- Family gatherings and travel: Diwali celebrations usually include visiting one’s relatives, going to one’s hometown for Diwali celebrations with family members, or even taking time out with friends. This can lead to expenditure on travel, food, accommodation, and other expenses.
Why is a Diwali loan a convenient choice?
Diwali preparations often come with several expenses that need attention at the same time, some of which are mentioned above. When your savings are not enough to cover these costs, a Diwali personal loan offers quick financial support. Here are a few reasons why it can be a convenient option:
- No collateral: Unlike secured loans, Diwali personal loans don't require you to put your property, gold, or other assets at stake as security. This makes it a great option during the festive season, when this can become a task. However, approval still depends on the lender's eligibility criteria.
- 100% digital application process: With an instant personal loan app, you can complete your loan application online from home. You just need to fill in your details accurately, upload the required documents, and submit your application. This saves you from visiting a branch.
- Quick disbursal of funds: When it comes to financial aid, timing is significant. This is because help that isn't provided at the right time is essentially wasted. Today, lenders offer quick processing and disbursal after completing the required checks.
How can you apply for a Diwali loan?
Now that you know what expenses you can cover with Diwali personal loan offers, let’s take a look at how you can apply for it:
Step 1
Assess how much you need
Start by calculating your expected Diwali expenses and estimate the amount you'll need after covering your monthly expenses.
Step 2
Check your eligibility
Review the lender's <a href="/blog/online-personal-loan-benefits-eligibility-and-application-process">personal loan eligibility</a> criteria before applying so you have a better understanding of whether you may qualify. This includes age, monthly income, employment details, credit history and more. At Prefr, we follow an age criterion of 21-55 years, with a minimum monthly income of ₹15,000.
Step 3
Compare available loan offers
Different lenders, different personal loan offers. This is why it is extremely important for you to compare interest rates, processing fees, repayment tenures and other applicable charges to get the best personal loan deals. We offer loans at interest rates ranging from 18% to 30% per annum.
Step 4
Fill in the application form
Now, go to the lender’s website or download the lender’s authorised loan app. Fill in your information, employment information and income information carefully. Then submit your PAN, identity proof, address proof, bank statements or income documents, as the lender may need.
Step 5
Complete verification and review the terms
The lender will then check your application. If it gets approved, make sure to read the fine print carefully. Review the loan amount, interest rate, EMI, repayment tenure, processing fee, and any other applicable charges. Do this before you sign anything.
Step 6
Receive the funds
Once you accept the terms and complete the required formalities, the lender will arrange disbursal according to its process. At Prefr, we credit the loan amount directly to your bank account within 30 minutes to 24 hours, depending on the lender.
Wrapping up
Diwali is a time to make memories with family, not to worry about how you will manage your next month's expenses. A Diwali loan can help cover expenses, like home renovation and shopping, ensuring you make the most of the festival without stressing over budget. However, remember that the decision should always be based on your repayment capacity, not festive excitement.
At Prefr, we understand that financial needs can arise at different stages of life. Through our instant personal loan app, we connect eligible applicants with RBI-registered lending partners for personal loans up to ₹5,00,000. You can explore repayment tenures of 6 to 60 months, with interest rates and applicable charges depending on the offer you receive.
Frequently Asked Questions
Will I be able to take a 0% interest loan?
Will I be able to take a ₹5 lakh loan at a ₹20,000 salary?
Is 700 a bad CIBIL score?
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Is it a good idea to take a personal loan for Diwali expenses?
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