Make Your Christmas Celebrations a Grand One With Personal Loans

Christmas is one of the most widely celebrated festivities around the world. It not only rings the bells for holidays but also reminds you of all the pending resolutions. Whether it is buying a high-end gadget or taking that trip during the holidays, renovating your house or hosting a Christmas party, a personal loan can help you tick these aspirations from your bucket list.
 

How to use Personal Loan to Celebrate Christmas?

1. Renovate your house

   Your home may require a little renovation from time to time. Whether it is getting the necessary repairs done, or refurnishing your home to give you a modern look, painting your walls or getting a new home appliance, a personal loan can help you in meeting these needs.
    
   With an instant personal loan through a loan app, you can use the funds to renovate your house in any way you desire. You can compare different lenders on your loan app and go for the one that offers you your required loan amount at the minimum interest rate. Also, before applying for the loan make sure to sketch out your budget and find out the amount you actually need.
    

2. Plan a trip

   The holiday spirit has already begun, and with the new year only a few days away, there cannot be a better week to plan a trip. You can plan a national or an international trip during the holidays to enjoy the best of Christmas spirit.
    
   Whether it is a solo trip or a trip with your friends and family, you can avail plan a luxury trip with a personal loan. A personal loan gives you the liberty of unrestricted end-use which means you can use the loan amount to book your flight tickets, hotel booking, or other expenses related to your trip.
    

3. Grab the discount

   During the Christmas season, well-known brands offer significant discounts on their products. If you want to buy designer dresses, jewellery, or any high end gadget or appliance, you can do so with the help of a personal loan. With the discount on your products clubbed with the offer on your personal loan interest rate, you can get your desired products at the best rates.
   
   While opting for a personal loan during the Christmas season, make sure to plan it well. Opting for shorter loan tenure for a personal loan could bring you the lowest interest rates, however it is equally important to keep your loan EMI affordable.
    

4. Buy a new vehicle

   Purchasing a new vehicle may also be on your to-do list. But given the pricing of a new vehicle, an outright investment in it might not be possible if you are on a tight budget. This is where you should look into getting a personal loan.
   
   You may be wondering why you should not go with a vehicle-specific loan. The reason is such a loan requires a down payment of 10-30% or even more. Furthermore, you must bear additional costs such as comprehensive insurance, road tax, and so on. However, with a flexible personal loan, you can purchase your dream vehicle and manage all these costs.
    

5. Debt consolidation

   You should try to pay off your high-interest debt before Christmas and begin the new year with fewer financial constraints. Personal loans are frequently obtained for debt consolidation. If you have several credit cards with pending bills on each of them, then you can opt for a personal loan to pay off your credit card bills.
   
   Also, if you have an on-going loan with high interest rate, then opting for a loan transfer can help you switch to a lower interest rate. However, please note that to get the best benefits on a personal loan, you should have a good credit score.

6. Buy great Christmas gifts

   Exchanging gifts on Christmas is a common tradition across the world. If you are planning to give high-end gifts to someone very close to you, such as siblings, parents, a spouse, or a close friend, then a personal loan can come to your aid. You can also use this amount to host a Christmas party for your friends and family.

What are the key attributes of a personal loan?

 

• Substantial funding

  The loan is available for up to Rs 5,00,000. All you need is a stable job, a decent and consistent income, and a good credit score. There are many lenders offering personal loans and the amount they offer may vary from lender to lender. Make sure to compare the offers from various lenders to find the best offer.
   

• Flexibility

  Availing a personal loan during the holidays can help you meet your obligations. You may use the funds to meet household needs, child education fees, medical bills for yourself or your loved ones, or business needs. The lender does not place any restrictions on you or ask why you are applying for this loan product.
   

• No collateral

  Financial institutions will never ask you to put up security in order to obtain this loan. However, if you have an average credit profile or have missed a few EMIs in the past but for genuine reasons, putting collateral can help you avoid loan rejection. You can get funding at a reasonable interest rate by collateralizing gold ornaments, risk-free investment policies, or vehicle documents.
   

• Flexible tenure

  You can obtain a personal loan for Christmas for a period ranging from 12-60 months. The lender allows you to choose the optimal term based on your budget.  In order to check your affordability, use a personal loan EMI calculator. 
   

• Minimum requirements 

  A personal loan for Christmas can be obtained with as little as Rs 15,000 in monthly income. For business owners, the total work experience necessary is two years, and for salaried employees, it is six months.
   

Also Read: 5 Factors That Affect Your Personal Loan Eligibility
 

When does a Personal Loan for a festival is not a good idea?

 

• If you have never had a loan before, applying for this financing product may result in loan rejection. The reason for this is a lack of credit history, which makes it difficult for lenders to assess your repayment potential.

 

• If the EMIs for the number of ongoing debts you have exceed 50% of your monthly income, you will either be rejected or receive funding at a higher personal loan interest rate.

 

• Delays in EMI payments, loan settlements, or defaults all have a negative impact on a credit score. If any of these scenarios appear on your report, your loan application may get rejected.

 

• If you are already on a tight budget and looking for this loan because your monthly income is insufficient to meet your needs, applying for this loan makes no sense. Because it will only result in rejection.

 
Also Read: Learn Everything About Personal Loan Disbursal Process
 

Conclusion

 
Availing a personal loan is a great option to make your Christmas memorable. However, before opting for a personal loan, remember that a loan is a financial liability and you must be very cautious with your borrowing behaviour. If you have a solid repayment plan for your personal loan then it is a smart choice to avail one!