Celebrating Diwali Responsibly With Festival Loans

As Diwali, the festival of lights, approaches, many of us eagerly anticipate the celebrations, gatherings and the joy that comes with it. However, these festivities often come with a price tag, leading individuals to explore festival-specific loan offers provided by banks and financial institutions. These loans are designed to make Diwali celebrations stress-free, but what should borrowers consider before diving in?

The pros and cons of festival loans

"Festival-specific loan offers from banks and financial institutions can be a big help during this time. They often come with good interest rates and flexible repayment plans, making them an attractive option," says Pramod Kathuria, Founder & CEO of Easiloan. These loans are indeed a tempting financial tool during the festive season. However, Kathuria emphasises the importance of responsible borrowing. "You don't want to end up in financial trouble later. So, here's the advice: only borrow what you truly need and make sure you have a clear plan for paying it back. Avoid borrowing more than necessary to avoid getting into unnecessary debt," he advises.

Rajesh Shet, Co-Founder & CEO of SahiBandhu, a leading gold loan aggregator platform, also acknowledges the convenience and joy that festival loans can bring. "Festive loans bring joy by providing financial flexibility during celebrations. These loans ease the burden of expenses, ensuring memorable moments without stress," says Shet.

Guidance on responsible borrowing

While festival loans offer a gateway to celebration without financial stress, it's crucial to approach them with caution. "We acknowledge the convenience these offers bring during festive seasons, yet advise prudent evaluation. It's critical to understand the terms, interest rates and repayment schedules," says Shet. The key here is responsible borrowing. Borrow only what is necessary and within your means, emphasis Shet.

Before diving into the world of festival loans, it's wise to assess your financial situation. "Set a budget for your celebrations and borrow only what fits comfortably within that budget. This way, you can enjoy the festivities without worrying about your financial well-being afterward," suggests Kathuria.

The joy of celebrations is meant to be shared, not overshadowed by financial stress. While festival loans can be a financial aid during this time, they should be seen as a means to an end, not an opportunity for unnecessary debt.