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Should you take a personal loan during the festive season?

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Should you take a personal loan during the festive season?

Are you looking to make changes to your home or wish to buy new appliances? If you have needs like these, you can easily fulfill the same this festive season by applying for a personal loan. Several banks are offering enticing discounts and schemes for personal loans where you will get lower intersest rates, automatically lowering the overall cost of the loan, waivers on processing fees for personal loans, easy EMIs and EMI waivers for certain periods of time and of course, zero pre-payment charges.

Several banks are now offering gold coins to all personal loan customers who get their applications approved. You should follow these steps while applying for a personal loan-

  • Check your own eligibility first and enter personal information like the gender, name, residence, date of birth and your income data. You will get a list of loans that you can apply for.
  • Compare interest rates offered by various banks and go for the lowest possible one.
  • Calculate the approximate EMI that you will have to pay through the online EMI calculator where you can enter the interest rate, loan amount, processing fee and tenor and your personal loan EMI will be calculated immediately.
  • Apply online by filling up the form on the bank/third-party website.

You can also visit your nearest bank branch to apply for a personal loan. You will get a form which has to be filled up and you have to submit all necessary documents including income details, identity, age and address proof and so on. Once the loan application is verified successfully, the bank will be processing your loan and will then approve and transfer the money to your account within 24-48 hours in most cases.

There is always an increase in demand for personal loans during the festive season. Banks are giving special offers likewise and you can take advantage of the same. However, consider these factors before applying-

  • Can you flexibly choose the loan amount?
  • What is the penalty for pre-payments?
  • Are you getting convenient repayment facilities?
  • When will the amount be transferred to your account?
  • What are the charges for foreclosing the loan?
  • Is the financial institution credible and reliable?
  • Are the low interest rates going to stay unaffected throughout the tenor?

You should always consider all options before applying for a personal loan in spite of the festive offers and tempting discounts. You should first analyze your own financial situation before planning for repayment and checking your eligibility. Always read all terms and conditions carefully prior to applying.

 

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