6 Affordable Ways to Borrow for Festive Shopping
Festival season is ahead and so is the time to welcome new assets and mark the new beginnings in life. A lot us wait for this time of the year to make significant purchases. So whether you had plans to buy your dream home, a new car or spruce up your kitchen, or any other change that calls for significant thousands or Lakh of rupees, you need not let the uncertainties of COVID TIMES hit your long listed projects.
Though it is important to stay on your budget amidst pandemic, yet low on budget should not be low on customer experience. You can indeed keep the festival spirit alive and make more of your festival shopping in 2020.
Here in this article I am listing out some of the effortless ways to fund your purchases during the festival season. To ease your shopping experience I am also listing out what types of expenses should be funded with available bank products.
1. Swipe Credit Card for online shopping, retail deals on consumer durables, electronics etc.
Shop today, pay after 50 days! This is one of the key features that make Credit Card transactions attractive. Each Credit Card comes with 50-55 days of free credit period. You need not pay any interest against card spends if you diligently repay by the before on due date. Besides, you also enjoy upfront discount and offers on card payments online on top ecommerce websites like Amazon, Flipkart & more.
Some of the best cards for tapping benefits of online shopping are: SimplyCLICK SBI Card, HDFC MoneyBack Credit Card and Axis Bank, RBL Bank Cookies Credit Card & more.
A word of caution: Try to keep your credit utilisation ration under 30% of the approved limit. Do not exhaust the limit to make the purchase. It is always recommended to rotate cards and ensure optimal CUR for each card you own. Rolling over card balance attract late payment charge & interest rate, which should be avoided always.
Thus credit cards should be used to make small purchases and that too for those transactions, where in you are sure to repay within 30-40 days. For this credit will come for free of interest cost.
For uninitiated, do check Best Credit Cards in India for 2020 and tap the benefits of festival offers.
2. Instant Cash Loan for big lifestyle purchases
For all those purchases up to Rs 5 lakh where you need 1-2 year to repay, Instant Cash Loan is one good option. You do not need to go through a lot of documentation and the loan is instantly disbursed to people who have good credit score.
As a festive offer HDFC and SBI are offering concession to borrowers with good credit score. You can apply for HDFC cash loan online and avail the same day disbursal.
3. Top Up Facility for celebration, working capital, debt consolidation etc.
Amidst pandemic, many people have been facing loss of monthly income. Herein, it is not advisable to opt for a new loan, especially when your cash crunch is temporary. In such a case, one should opt for a Top Up on existing Home Loan. Mostly this facility is extended based on your past credit history and relationship with bank. The Top UP is over and above the approved loan.
The benefits are instant approval and parallel rate of interest to existing Home Loan. Besides, you get complete flexibility to repay. Interest is charged only for the days you use the credit. If you park your money in this account, interest will only be applied on the balance of the loan amount.
Use Top up in situations such as:
a) When you have an existing loan account.
b) When your financial hassles are temporary.
c) When you need small loan amount.
4. Overdraft facility for home improvement & other essential expenses.
This is another preapproved facility which can come to your rescue at the time of emergency. OD is the facility wherein you can borrow a fixed percentage of loan amount and repay on reducing balance rate. It is preapproved facility and offers a great deal of flexibility to both salaried as well as self employed borrowers.
With Home Loan accounts, you can even get OD up to 20 lakhs. Thus overdraft facility can be best for big expenses or purchases such as home improvement, down payment for purchase of car etc.
5. Consumer Durable Loan
While Credit Card is one way to pay instantly for your purchases, another option is to use the available offer with the retail outlet. You can make the purchase and accept an EMI facility as per your budget. This works like a Personal Loan and lets you repay in affordable instalments during the course of loan.
Most electronic products such as TV, refrigerator, AC units, smart phones are often available on EMI with online merchants as well as retail outlets.
6. Payday Loan
In case you do not want to opt for a cash loan and want to borrow for less than 30 days, you may consider opting for Payday Loan. This is basically credit against your salary or advance salary loan. The interest is charge on per day basis and there are no strict eligibility criteria. All you need to share is an advance cheque with the lender for payment of the loan amount on your payday. These are great option for very small cash requirements that needs to be fulfilled before your next salary.
Final Words on Festival Offers
2020 has been the year of financial hassles. Banks as well as brands are aggressively working to attract customers and promote credit. Not only lending rates are lowest today, we have some of the best discount offers running across the product lines. From annual online shopping festivals to limited period discounts and concessions on loans and cards, you can make smart buying decision this year.
For instance, leading lenders like HDFC, SBI, Kotak, BOB have waived off processing fees, and are also offering fast disbursals for bookings this month. In fact you can find multiple offers from different lenders on each transaction, be it shopping, online booking, dining etc. So, make most of the opportunity and go ahead with available discounts and maximise your savings.
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