Is it a good idea to avail a Personal Loan for holiday gifts?

4 MinsJan 12, 2023

Who doesn’t love holidays? Spending holidays with family or friends helps you bond better and have a gala time. But when holidays are around the corner and you plan on visiting home, you wouldn't want to go home empty-handed. Better yet, you can even book a vacation for your family, Thus, taking a personal loan is a fantastic idea.

Is it a good idea to avail a Personal Loan for holiday gifts?

A family vacation requires funding for booking tickets, hotel accommodations and related expenses. Do not let a shortage of funds spoil your plans. If you do not want to break your savings, then consider taking a personal loan for purchasing holiday gifts.

A Personal Loan is an unsecured loan and can be used for various purposes, including purchasing gifts. You get the freedom to use your money however you want to use it.

Key benefits of a Personal Loan:

A personal loan is a multi-purpose loan. You can use it to fund your holiday gifts for the below reasons:

  • Collateral-free loans
    Personal loans are unsecured loans, meaning they do not require collateral. You will not have to pledge a security or a guarantor when you apply for a personal loan. As a gift loan, you can easily use the loan amount for holiday gifts without worrying about your assets needed as security.
  • High loan amount
    You can get personal loans of a high amount based on your financial requirements and repayment capability. For instance, you can apply for an Axis Bank Personal Loan starting from ₹ 50,000 up to ₹ 40 lakh.
  • Affordable rate of interest
    A personal loan comes with competitive interest rates. For example, Axis Bank offers personal loans at competitive interest rates ranging between 10.49% and 21%. Before finalising a personal loan for gifts, always compare the personal loan interest rates across lenders to get the best deal.  
  • Flexible loan terms
    Based on your monthly income, employment type, credit score and repayment capability, the term for repaying the personal loan can get adjusted. Axis Bank offers personal loans with tenures ranging from 12 months to 60 months. So, you can decide the loan tenure you want while availing of a personal loan for holiday gifts.
  • Easy EMIs
    You can get a personal loan for holiday gifts with an easy equated monthly instalment (EMI) facility. It will help ease your budgetary constraints. You can decide the EMI you are willing to pay based on your loan requirement and repayment capability.

[Also ReadWhen should you avail of a Personal Loan?]

Final thoughts

Holidays are meant to be enjoyed. But holiday gifts come at a cost. If you need to borrow funds, then personal loans are an easy way to get funds quickly. Use the Personal Loan EMI Calculator to check how much personal loan on holiday gifts you require and whether it is affordable or not.

Axis Bank offers personal loans up to ₹ 40 lakh with minimal documentation. They allow quick processing and speedy approval. Axis Bank even allows you to transfer your current high-interest personal loan to Axis Bank. It could be the perfect way to fund your holiday gifts.

Look out for interest rates, loan tenure, loan amount and repayment capability before applying for a personal loan. Be timely with your EMI repayments. For more details on a personal loan for holiday gifts, click here.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.