Personal Loan: The ins and Outs of Buying Luxury Gifts
Self-indulgence is pretty elusive, and yes, many can’t afford it. A personal loan for buying gold jewellery, or a personal loan for a diamond ring, or a fancy car is no big a deal and you’ll know why as you scroll down. So, let’s get started.
What’s a Personal Loan?
A personal loan is a type of loan where a fixed sum of money is borrowed from the bank to fulfil any unspecified agenda. That means you can buy any luxury gift for yourself or your family without worrying about any consequences.
The Personal Loan for Pleasure Seekers
The possibilities of the things you can get with a Personal Loan is limitless. Plan a wedding, fund your education or simply a serene vacation abroad, the choice is totally up to you. Here are a few purchases in India commonly secured through a Personal Loan:
- Jewellery Purchasing jewellery with a Personal Loan is common in India. We as Indians, have a special attachment with jewellery: diamond ring for an anniversary, wedding rings or just for day-to-day wear, etc. A Personal Loan for jewellery is really easy to secure and repay no matter what ornament you decide to choose.
- Furniture Another common purchase in India using a Personal Loan is furniture and decor. You can improve the interiors of your house with lavish sofas, modular kitchens, sleek furniture, the possibilities are endless. You can avail discounts and amazing offers due to tie-ups between banks and retail partners.
The Personal Loan Aftermath
Taking a personal loan for expensive gifts demands returns. You’d want to know if you are risking any assets, and repayments are another issue. Plus, you don’t want the lender breathing down your neck if you pay late. Here are some pointers to keep in mind after you’ve successfully spent your personal loan amount to purchase a luxurious gift:
- Paying in Parts You have to start repaying the loan amount soon after you’ve bought the limited edition jewellery for your wife or a car for yourself. It’s always best to pay more than your monthly loan amount to cut down on interests. If you’re paying the minimum monthly loan amount, you end up paying extra. Therefore, remember that the more you repay, the less you pay.
- Freedom from Repossession A foreclosure is a situation in which the loanee is unable to make principal and interest payments on his/her mortgage, forcing the lender to seize the property, evict the inhabitants, and sell the house as stipulated in the contract. There’s no point in taking a loan for buying furniture when you can lose your house to repayments, although this rarely happens in India. A more probable scenario involves sitting down with the lender and renegotiating the terms of your loan.
- Be the First to Know As the customer, you’ll want returns to go with the loan. Getting a loan set out for a luxury gift is better than encashing a loan amount. Transparent pricing, nominal processing fees, low EMIs, and no blockages on credit card limits, are a few benefits you can reap.