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Festival Loans |
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Festivals are occasions of joy and Festival Loans serve the best purpose. Its been widely noticed that leading banks in both public and private sectors cash on the festive season by offering loans at discounted rate. It’s seen that there is a continuous surge in consumer spending during the religious festivals. Banks tend to attract more customers by offering lower rates of interest. Festival loans however serve, as a variant of personal loans.
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These loans are extremely convenient for people who want a small loan and can repay early but do not want to pay interest at the exorbitant rates as levied by most banks. Bank Loans in India has undergone a great change so as to attract more customers from different corners of the society.
Keeping in mind, the changes inflicted upon by the establishment of economy policies Festival Loans too had their share of loans. It’s important to note that festival loans are given for amounts as low as Rs 5,000 and the maximum amount is limited to Rs 50,000. Festival loans are however generally restricted to 12 months. There are many Companies offering Festival Loans. Repayment can be done through Equated Monthly Installments or EMI. Here, the loan size is smaller and the repayment period is shorter than that for personal loans. In this case, special mention needs to be made of SBI charges 1 per cent as processing fee on personal loans, but Rs 100 for festival loans, irrespective of the quantum of loan. Although this amount equals to 2 per cent of Rs 5,000 which is the lowest limit, it reduces as the loan amount gets higher and is just 0.2 per cent for Rs 50,000. There are different Types of Festival Loans.
The SBI loan can be used for festival related expenses throughout the year. According to the bank officials Festival Loans interpret the purpose of the loan based on their needs and celebration.
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