Festivals
are occasions
of joy and
Festival loans
help to serve
better. Its
been widely
noticed that
the major
banks in both
public and
private sectors
cash on the
festive season
by offering
loans at reduced
rates. We
saw that there
was a continuous
rise in consumer
spending during
religious
festivals.
Banks tend
to attract
more customers
by offering
lower interest
rates. Festival
loans, however,
serve as a
variant of
personal loans.
These loans
are extremely
convenient
for people
who want
a small
loan but
do not want
to pay interest
at exorbitant
rates charged
by most
banks. Bank
loans in
India have
undergone
a great
change in
order to
attract
more clients
in different
corners
of society.
Bearing
in mind
the changes
by putting
in place
policies,
Festival
loans too
had their
share of
features.
It is important
to note
that the
festival
loans are
given for
an amount
as low as
5000 rupees
and the
maximum
amount is
limited
to 50000
rupees.
Festival
loans are
generally
limited
to 12 months.
There are
many companies
offering
Festival
loans The
reimbursement
may be treated
by monthly
installments
or EMI.
Here, the
loan is
smaller
and the
repayment
period is
shorter
than that
of personal
loans. In
this case,
special
mention
must be
made that
SBI charges
1 percent
processing
fee on personal
loans, but
Rs 100 for
festival
loans irrespective
of the amount
of the loan.
Although
this amount
is equal
to 2 per
cent of
Rs 5000
which is
the lowest
limit, it
reduces
the amount
if the loan
is higher
and is only
0.2 per
cent to
Rs 50000.
There are
different
types of
Festival
loans.
The SBI
loan can
be used
for expenses
related
to festivals
throughout
the year.
According
to officials
Festival
loans are
interpreted
by the purpose
of the loan
according
to their
needs and
celebration.
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