Should You Go For Festive Season Loan Offers?

LAS Growth

Should You Go For Festive Season Loan Offers?

08 November, 2021



The festive season is upon us and so are its happening events. In India, this season is a grand affair. It’s the time when people invest in themselves, shower each other with gifts and invest. Why? Because Diwali is considered an auspicious occasion to spend money. 

For the world of finance, festive seasons like Diwali is a time to go all out with offerings. 

Much like the Great Indian Festival by Amazon, various banks and financial institutions provide offers on loans in the form of discounts, waivers of processing fees or lower interest rates. You get a chance to opt for the cheapest loans in the market. 

But the question is: Should you go for these offers? Read below. 

What Are Festive Loans? 

Festive loans are where banks offer special loans during the year-end festival season. These loans are home loans, gold loans, vehicle loans and even personal loans. The only difference between these loans and year-long loans is that festive loans are offered at much cheaper rates including lower to no processing fees, faster processing, heavy discounts and lower interest rates. 

These loans are typically of higher ticket size compared to regular loans. However, some loans like personal loans for online sales are of a reasonable price and are meant to make spending easy on the pockets with flexible payments. 

Should You Opt For Festive Season Loan Offers? 

Let’s look at this from a practical angle. There is a reason why banks benefit the most from these deals even though they have to bid farewell to additional costs and fees. In fact, RBI itself has clarified that the concept of ‘No Cost EMI’ or ‘Zero Interest Loan’ is non-existent and has banned such schemes. 

For example, these low-interest rates and zero processing fees are offered on loans with a high principal value say Rs. 20 lakhs and above, you won’t be able to take the same offer on a lower value and will have to pay regular interest. Either way, you will end up spending the way banks want you to. 

The concept of Zero Down Payment is the same. If you don’t have the money to pay the cost upfront, then that money will come back to you in the form of costly EMIs and high-interest rates. 

As enticing as these offers are, we can’t overlook the fact that they are still loans that need to be repaid with interest. It’s a commitment. Therefore, it’s best to not get swept up in the festive mood. Only take a loan if you absolutely need it. 

Here’s A Better Option 

Instead of looking for conventional loans during the festive season, why not look for options that would actually benefit you in the long run? 

Loan against shares or loan against securities by spark.loans is a product that enables you to get a loan on your investments. With no hidden costs and a great digital experience, we make your loan availing process as quick and transparent as possible. 

Benefits: 

  1. Get a loan based on the value of your portfolio
  2. Interest at 1.24%* per month with flexible payment options, No EMIs 
  3. No prepayment penalty
  4. Pay only on the amount utilized by you
  5. Easy documentation 


For more information on LAS visit our website. Follow us on FacebookInstagram and LinkedIn for more financial tips and updates.


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