Festival season in India is often synonymous with big celebrations and a whole lot of crazy shopping. Right from the big-ticket purchases like a new home or a car to jewellery, gifts, clothes, and electronics, the list just goes on. Adding to this, retailers offering tantalizing festive season deals & discounts further excite and tempt even the stringent of customers.

However, along with all this excitement and festive cheers, the season also brings financial baggage as bills may pile up post the festive celebration.

Do you also relate to the situation?

If your answer is Yes, all you need is a little financial planning to ensure that you can have your cake and eat it too. Here are a few tips to help you enjoy the upcoming festive season without having to deal with a financial hangover later.

Do not depend only on salary and Diwali bonus:

It is usually tempting to spend the entire salary income and bonus (which many employers offer during Diwali) on the festive shopping, In the spirit of the festive and discount offers, we tend to forget about the end of the year expenses (Christmas, New Year celebrations, saving towards tax declaration) that will further put financial strain on the already stretched budget.

However, exhausting your in-hand cash or swiping your credit card can quickly deplete your bank account and often leads to piling up of unnecessary debt to be dealt with later. It is, therefore, extremely important to exercise financial discipline during this time so that you enjoy this much-awaited season without denting your pocket.

Leverage financial credit products- A smart solution to manage the festival expenses!

Spending hefty amounts from your pocket (at one go) may not be a feasible option for everyone and hence a lot of people depend on credit to meet the festive shopping demands. Here are some of the most convenient options you can look at to fund your expenses this festive season.

  1. Personal Overdraft Loan: When you are not sure of the amount you are going to use, Personal Overdraft loan is best cash on the go facility to apply for. Personal Overdraft loan is a unique personal loan. Herein, a borrower is offered line of credit that allows them to make withdrawals from approved credit limit. . It provides you the flexibility to withdraw and repay at your convenience. The calculation of interest happens on a daily basis. It is more or less like credit card facility but at half the rate of credit card. This loan is extremely easy to maintain and one pre-pay without any additional charges at any point of loan tenure.
    Highlights of a personal overdraft loan

    • In the case of OD facility, the interest rate is charged on the withdrawn amount only for the number of days of withdrawal. Once you repay the withdrawn amount , credit line is adjusted to approved limit
    • No annual maintenance fees is charged to maintain this line of credit. LoanTap’s line of credit comes without diminishing line of OD. So enjoy full credit availability for entire tenure
    • One of the main advantages of personal OD loan is no monthly service fee or minimum monthly repayment requirements. You pay only for what you withdraw
  2. EMI-free Loan: All you need this festive season is EMI Free Loan!! You take loan and pay only interest on the monthly basis. It is one of the most unique and innovative personal loan products in India.
    EMI Free Loan is available for salaried individuals/professionals. Similar to other personal loan facilities, you can get to know your EMI Free Loan Eligibility upfront.
    How can a personal loan be EMI Free? How does this work?
    As against the traditional personal loans where loan repayment happens on fixed EMI basis, in EMI Free Loan, one pays only interest on monthly basis. Bullet payment towards principal is paid every 6th month. Interest is recalculated on the remaining principal amount, thus, further reducing the interest outgo from the following in month.
    Highlights of EMI-Free personal loan

    • Reduced instalment payment up to 40%
    • One can avail up to 10 Lakhs loan amount for as long as 60 months loan tenure
    • Quick approval process where the loan is sanctioned & disbursed in 24 hours
  3. House Owner Loan: Many of us prefer to invest in New homes or plan renovations for our homes at this time of the year. House Owner Loan is another unique product that you can avail this festive season to fulfil all your home needs. It is extremely simple to get this loan and is sanctioned within hours. This loan is primarily for house owners who require funds for various home-related expenses such as renovating their house, doing interiors etc.
    Highlights of Home Owner loan

    • Faster sanction letter within 2 hours if home loan sanction letter if submitted along with other required documents
    • Up to 40% reduced cash outflow on monthly basis
      In this type of loan, customer needs to pay interest amount every month along with a bullet amount towards outstanding principal amount every 6 months
  4. Holiday Loan: Festive time means family time! Whether you travel to your home town or you plan a vacation on account of long holidays, everyone loves to spend the festival with loved ones. Here’s a Holiday Loan that gives you flexibility in repayment facility. Unlike regular personal loan, Holiday Loan lets you pay interest only for first three months of loan sanction and post which loan can be repaid with regular EMI, for the remaining loan tenure. This gives you a cushion of reduced monthly cash outflow for first three months.

    Highlights of a Holiday loan

      • Inbuilt flexibility of repayments
      • Faster approval process and loan sanction within 24-36 hours

    LoanTap, a digital NBFC is the one stop solution for all festive financial needs and has made loans, simple to access, for millennials. You get to know your eligibility criteria upfront for all kinds of loans and accordingly apply online, upload basic documents and post approval, your loan is disbursed within 24-36 hours of application.

    Availing loan from LoanTap has additional advantages as you :

    1. Get the best loan products suited to your pocket
    2. Experience transparent processes and extremely responsive customer servicing team
    3. Seamless and hassle-free process right from the online application until disbursal
    4. Flexible repayment options and after six months of servicing your current loan, you may switch either to EMI free loan or enhance and accelerate repayment

    Eligibility criteria

    • The borrower needs to be a salaried professional with monthly income more than Rs 30,000.
      Individual working in Private/Government organisations.

Come, Celebrate the Festive with LoanTap

Download our Online Loan App to apply now: Google Playstore / Apple App Store

EMI Free LoanHoliday LoanPersonal Overdraft
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Satyam Kumar is banking industry veteran with enriched experience of more than 20 years. Apart from founding LoanTap and FinTech Association of Consumer Empowerment, he is an avid traveler and holds keen interest in Blogging. He has amassed profound knowledge in FinTech trends, banking, consumer trends, food and mythology which he loves sharing with others.
Satyam kumarSatyam KumarCEO & Co-Founder, LoanTap asset 8 asset 9
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