How A Personal Loan Can Add Spark To Your Festival Celebration
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How A Personal Loan Can Add Spark To Your Festival Celebration

With Akshay Tritiya and Diwali around the corner, various expenses are set to arise out of festivities. We always look forward to making one or more purchases throughout the year and often end up lacking funds at the festival time. With Diwali being the biggest of them all, don’t let the unavailability of funds put a damper on your celebration.

This year, Diwali has brought up an additional reason to cheer up. You can now avail of a festival loan in just five minutes and get the amount instantly credited to your bank account.

Personal Loans in India

A personal loan is an unsecured loan offered for a short to medium term to individuals for their urgent financial needs. To avail personal loans in India, banks or non-banking financial companies (NBFCs) don’t require any collateral or security as in case of a car loan and home loan.

These loans are offered to individuals with end-use flexibility, such as home renovation, a medical emergency, purchasing an appliance, a vacation, etc.

While the best time to apply for a personal loan is when you need additional funds to finance something important, various banks and NBFCs offer loans at attractive interest rates during the festival season.

A personal loan is an easy-to-avail financial leg up and requires zero or minimum documentation; however, it is sanctioned only after thorough verification of the applicant’s credit score, annual income, repayment history, etc.

Personal Loan Features

A personal loan is the best way to avail additional funds during a financial emergency due to the following features:

Multipurpose use

While home loans and car loans can only be used for specific purposes, there is no such restriction when it comes to personal loans. It can supply additional funds (opens in a new tab/window) in any situation, be it a medical emergency or uncleared debts.

Flexible pay-back tenure

The payback period of a personal loan is quite flexible, especially when compared to a loan against your credit card. You can select a tenure up to 5 years according to your repayment ability.

Flexible loan amount

Depending on your income, profession, age, and repayment history, you can be offered a flexible loan quantum between Rs. 10,000 and Rs. 40 lakhs.

No collateral

As personal loans are unsecured, that is, banks don’t ask for collateral in exchange for the funds. The loan is sanctioned based on your age, credit score, income, profession, and repayment history.

Swift Processing

Many banks and NBFCs entertain the online application of personal loans, as they’re easier to process. Once the credibility of a borrower is established, minimum documents are required before the fund is disbursed.

As the whole process, including the transfer of sum, takes place online, it’s a matter of hours before you get the required amount.

Popular Personal Loan Offers

While there is a range of festival loans in the market, most of them offer smaller sums (only up to Rs. 50,000) and shorter repayment tenure (not exceeding 12 months). If this doesn’t finance the gap, the following personal loan offers can offer a sure way out:

Personal Loan Diwali Offer by SBI

India’s largest public sector bank, State Bank of India (SBI), has come up with a bouquet of special offerings for its customers this festive season. The bank is offering personal loans at the lowest interest rates, starting from 10.75%. You can get SBI personal loan up to Rs. 20 lakhs with a repayment tenure of 6 years. This certainly reduces the burden of EMIs on SBI customers.

If you’re an eligible SBI customer, the bank will quickly disburse the loan amount through its integrated online banking app, called Yono, without any documentation or human interface. It’s the system that checks every aspect related to loans and disburses the amount electronically through the mobile or portal in the matter of a few minutes.

HDFC Loan Against Credit Card

HDFC Bank, India’s largest private sector lender, offers personal loans against credit cards, namely Insta Loan and Insta Jumbo Loan with flexible tenures between 12 and 60 months. The amount of your loan depends on your credit card limit, your credit and repayment history with the bank. The rate of interest is subject to the tenure of the loan.

If you’re an existing HDFC bank credit card holder, then you can easily avail of any of these loan types. To apply for a loan on your HDFC credit card, you can either speak to the bank’s customer support or log into your internet banking portal to submit your loan application. The amount is then instantly transferred to your HDFC bank account.

NBFC Personal Loans

Sometimes, due to a low credit score, is not possible to get a personal loan from banks. In such cases, NBFCs are ready to provide you with the much-needed funds. While there is no upper limit on the interest rate applicable to such loans, it typically varies from 11.25% to 19%.

The loan amount can be anywhere between Rs. 5,000 to Rs. 50 lakhs with the applicable repayment period between 12 and 60 months. The entire process is conducted online and the funds are disbursed within 2-3 working days. Some popular NBFCs in India include IIFL, Bajaj FinServ, Mahindra Finance.


Festivals bring a lot of fun and happiness but, at the same time, may also bring unforeseen expenses, such as a home renovation or a long-due get-together. If you are short on funds, you can apply for a personal loan and select the repayment period as per your convenience. For further assistance, you can speak to your bank’s customer support team and explore the available offers.

With Diwali around the corner, banks and NBFCs are offering personal loans at attractive interest rates. The best part is that you don’t have to go through intense paperwork or produce collateral or security to spend a little on these small, memorable personal expenses.

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