Personal Loan

How can you use your loan amount for gifting this Christmas?


Christmas has arrived. It is just a matter of time before you get frantic with shopping and decorations for the 25th. Undoubtedly, Christmas brings together friends, distant families, and members staying at different places. Plus, the event marks the end of the year and the beginning of a new phase in life. So, everyone has the right to celebrate it in a blasting and grand manner.

But sometimes, you need help to do what you want to. For instance, if you plan to throw a large Christmas party on the lawn, you might face a financial crunch. Similarly, when you have to buy an array of gifts for the occasion, you can have a shortage of funds. There should be no compromise with the Christmas gifts and celebrations. So, the best option you have is a personal loan. Although it might sound a bit weird to have a loan to buy Christmas gifts, it’s of no harm. 

Keeping this in mind, we have shed light on a personal loan for Christmas gifting. This will help you understand certain aspects of credit quickly. Furthermore, you can also know the ways to utilize the funds for buying gifts. 

Can you get a personal loan to buy Christmas gifts?

To begin with, everyone must know if they can get a personal loan to buy Christmas gifts. Although there is no hard and fast rule on the price tags, you probably want to buy something special. For this, you need a lot of savings. Additionally, if you have to get more than a couple of gifts, your savings might not permit you. Therefore, taking out a personal loan sounds more feasible. 

You won’t have to explain the reasons for taking the credit. Since it is a personal loan, you will have the freedom to use it anyway. So, not only can you buy expensive gifts for your loved ones, but you can also get the decorations started. You won’t get a personal loan classified under Christmas, as you can get one for medical emergencies or weddings. Therefore, you need to apply for regular credit. 

How can you use the personal loan for Christmas gifting?

You can use the personal loan for the following Christmas gifting option: 

  1. Buying a car for yourself or your loved one
  2. Giving gold or diamond jewelry to your mother, sister, or partner
  3. Purchasing a new house or renting a new residence
  4. Giving gifts to your employees for the small business you started
  5. Buying electronics for your new home
  6. Getting the best pieces of furniture for the house

What are the different loan options for gifting this Christmas?

You can find different types of personal loans for Christmas gifting purposes. You must know all these types to avoid being in a difficult position later. Therefore, we have discussed a few classes in the below section. From here, you will get a brief idea about the personal loan types suitable for gifting this Christmas.

  1. Unsecured loan: You can quickly get an unsecured personal loan from any creditor. You won’t have to give anything for the collateral. So, your precious assets will be safe from the risks of forfeit. Furthermore, you can ask for a lower principal amount to avoid the dangers and higher interest rates. 
  2. Secured loan: Another type of personal loan is the secured loan. Here, you have to give something as collateral. However, the asset valuation should be equal to the loan amount. If you fail to pay the debt, the creditor can leverage the collateral to get back the money you borrowed. 
  3. Payday personal loan: This is an excellent option for having enough funds to buy Christmas gifts. The loan approval depends on your income statement. You must repay the amount and the interest before the next paycheck. Since the tenure is short, you won’t be able to get a higher amount for the loan. 
  4. Instant personal loan: One of the best options is instant credit. True to its name, you will receive the funds in your account instantly. Creditors take 24 hours to process the funds. But the interest charged is relatively high. So, you should be very specific if you want to get a personal loan. 

How to get the personal loan for Christmas gifting approved?

Since you know the personal loan types, you must know the factors influencing the approval. With an initial idea, you might get the support fast. In addition, the chances of loan application rejection will also increase. So, here are some of the factors to consider before applying for a loan. 

  1. Your credit score needs to be high, more than 700. If you want the best Christmas gift for your loved ones, maintain a high score. If not, creditors can reject your loan application. 
  2. Since it is a personal loan, you have to present income proof. It can be your salary statement for the last six months. If you own a business, show the ITR reports to the creditor. 
  3. You must also choose the best creditor offering personal loans for Christmas gifting. For secured and unsecured loans, private and public lenders will be best. But you can use online or private lenders for payday and instant loans. 
  4. Ensure to keep all the documents in place. If the papers are improper, the creditor can reject the personal loan application. 
  5. Compare the interest rates for different creditors. This will help you to understand which loan option will be more feasible. After all, there is no point in paying more than you can afford.
  6. Also, it would be best to take a loan with no commission and processing fees. You can discuss the same with the creditor before accepting the loan. 


In this article, we have walked you through the best ways of utilizing a personal loan for Christmas gifting. We have also discussed the loan types and factors influencing loan approval. To learn more about personal loans, you can check the details at Piramal Finance website.