With the arrival of the festive season, it's natural to want to indulge in celebrations and gifting activities for your loved ones or for some self-love. Credit and loan options make it easier for these wishes to come true. However, it's crucial to be well-informed when making such financial decisions. To begin with, here are five key considerations that should be on your radar when opting for an instant loan during the festive season:
Loan purpose and necessity
The first step in your journey towards applying for an instant loan is introspection. It's important to carefully evaluate the purpose of the loan. Determine whether it's genuinely necessary and whether the reason behind taking the loan aligns with your priorities. While it's exciting to have extra funds for festivities, ensuring that the loan serves a meaningful purpose can help you avoid unnecessary debt and the stress that follows.
Credibility of the lender
The credibility of the lender is one of the most important factors for anyone considering a loan. Choosing a reliable lender who is RBI authorised is paramount. Always research the lender's reputation and credibility and verify that they are registered and have a positive track record. A reputable lender ensures transparency and follows ethical lending practices that make any borrowing experience smoother.
Loan processing time and customer support
Evaluate the loan application processing time and the lender's customer support quality. A lender with efficient processing and responsive customer support can provide a smoother and more reliable borrowing experience, which can be particularly advantageous when you have immediate festive expenses to cover.
Hidden fees and penalties
When you opt for an instant loan, there are possibilities of hidden charges, fees, and penalties, so look out for such charges that might catch you off guard. Being aware of these charges upfront can prevent unpleasant surprises later on. If something seems unclear or the lender lacks transparency, don't hesitate to ask the lender for further clarity.
Loan tenure and flexibility
The loan tenure has a direct impact on your monthly payments and overall cost. So assessing whether the loan repayment period aligns with your repayment ability is necessary. Also, find out if there is a flexible option where you can change the schedule for repaying the loan if something unexpected happens. Opting for a tenure that suits your financial comfort builds a strong base for borrowing wisely, helping you keep your finances in good shape.
Remember, while an instant loan can provide short-term relief, it's crucial to borrow responsibly. Before making a decision, thoroughly weigh the pros and cons, and only borrow what you genuinely need and can comfortably repay. By considering these key factors, you can make an informed choice that adds joy to your festive season without compromising your financial well-being
Sonia Gupta is Chief Business Officer, True Credit