Are Personal Loans a Viable Option for Covering Winter Holiday Costs?

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You are not alone if the holiday season fills you less with cheer than anxiety, especially if you are a salaried professional with a tight budget. From family dinners to special gifts, the season of winter holidays often comes with a lot of financial pressure. Many professionals need help to afford the expenses they wish for the season due to inflation and the rising cost of living. So, they plan to take a Personal Loan to cover the expenses related to the holiday season and enjoy it without any stress. 

Personal Loans are designed to cover holiday expenses. Professionals often take them to cover the costs of travel, gifts, parties, or pretty much any other purpose. They receive a lump sum upfront, which they repay over time in easy monthly payments. Since loan terms vary by lending institutions, an online Personal Loan calculator helps calculate the EMI before applying. Applicants with stable income and good credit often qualify for more favourable terms and better interest rates. 

Anticipating increased spending during the holiday season, customer-friendly NBFCs like Clix Capital provide Personal Loans specifically during this time. Let’s know more about these loans and how they help fulfil the holiday goals this season.

How Does a Personal Loan for Winter Holidays Work?

Personal Loans for the holiday season are unsecured funds that borrowers can use for legal purposes. Like instant loans offered by NBFCs for dedicated purposes like weddings, home renovations, vacations, medical emergencies, and education, you can plan a low EMI Personal Loan for the holiday season.

Lending institutions determine the loan amount, interest rate, and repayment term based on several factors, including their policies and the applicant’s income, DTI ratio, employment, credit rating, and overall repayment capacity. While some NBFCs require a minimum income of 25,000 and a credit score of 750+ to approve loan applications, Clix Capital offers Personal Loans online to salaried professionals with a minimum income of 20,000 and an Experian Credit score of 630. 

Therefore, check your eligibility and apply online for an instant Personal Loan for the holiday season. Before applying, check the available loan amount, interest rate, repayment terms, documentation requirements, additional charges, and customer service.

Benefits of Availing of a Personal Loan for Winter Holidays 

Here are a few features and benefits that make Personal Loans a viable option for covering the holiday costs:

  • Easy Online Application: NBFCs offering online loans do not require branch visits or physical paperwork. Aspiring applicants can go to the NBFC’s website, fill out an online application form, and get approval instantly. The easy online application makes Personal Loans a perfect funding solution for last-minute holiday expenses.
  • Flexible Purpose: Borrowers can use a Personal Loan for holidays to cover any costs they want, including travel, gifts, and other holiday expenses.
  • Fast Funding: Some reputable and technologically-advanced NBFCs promise approval and disbursal within one business day.
  • Competitive Interest Rates: Personal Loans for holidays have competitive interest rates, so borrowers don’t need to worry about paying a high loan cost over time.
  • Easy Repayment Terms: Personal Loans come with flexible repayment tenures, allowing borrowers to select their EMIs according to their affordability. Consequently, a Personal Loan is an affordable way to cover holiday expenses and repay its cost in budget-friendly EMIs. Use an online Personal Loan calculator to calculate the EMIs and avoid financial stress during the loan term.
  • No Collateral Required: Opting for a secured loan leads to collateral loss if the borrower fails to repay it. However, Personal Loans are unsecured loans that do not require collateral, security, or a guarantor. So, a Personal Loan for holidays involves no risk of losing collateral.

Also Read: 9 Best Home Loan Tips 2022

Steps to Get an instant Personal Loan for Winter Holidays

Those looking for a low EMI Personal Loan for Christmas must follow these steps.

Check the Credit Score: Before applying for a Personal Loan, checking the credit score and rectifying errors in the credit report is helpful to get the best deal. The stronger the credit history, the better the interest rate an applicant will likely get. An online credit score checking tool is ideal for checking the credit score and ensuring it meets the lending institution’s minimum loan requirement.

Shop Around: Check different loan offers before finalising a deal to find the best interest rates and most reasonable loan terms. Several NBFCs support a 100% online loan procedure that applicants can complete from home. Check their interest rates, loan terms, and other conditions to find the best deal.

Estimate the Loan Costs: Use an online Personal Loan calculator to calculate the EMIs and total loan cost before borrowing. Improving the credit score, reducing the debt-to-income (DTI) ratio, and comparing loan plans are the best ways to get the best offer. Some NBFCs charge sky-high interest rates that one must avoid. Know the reasons for high-interest rates and improve eligibility to reduce them.

Choose Repayment Tenure Wisely: Personal Loans are instalment loans that borrowers must pay off in fixed monthly EMIs as per agreed repayment tenure. Ensure EMI affordability before borrowing by selecting a loan tenure with budget-friendly EMIs. Choosing a more extended tenure might cost higher but keeps the EMIs manageable.

Submit the Loan Application: After finding the loan offer suitable to their budget, the borrower can fill out and submit the online application by providing personal information and necessary documents. If your KYC is updated with your Aadhaar and PAN, you don’t need to upload or submit the documents anywhere. You can get them verified online within a matter of minutes.

Keep up with the Payments: Check the first payment’s due date once the loan gets approved. It makes sense to set up automatic payments from the account so that no EMIs are missed. However, maintaining enough balance in the account during the EMI date is recommended.

Numerous online NBFCs offer winter holiday loans to salaried professionals. These loans do not require any collateral, paperwork, or office visits. The interest rates are competitive, and loan terms are flexible to keep the loan cost minimum. These loans are also easy-to-procure, quick funding solutions for the festivities of the holiday season. 

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