Personal Loan

Is it a good idea to take festive loans for festivals in 2022?


Loans are a good way to get financial support and fulfil your needs and requirements. Be it for personal reasons like buying a property, financing education, or for business, loans are always a viable option. Loans decrease your financial stress and help you manage your finances more effectively. You can easily repay them at low-interest rates in EMIs. But with all the benefits of availing of a loan, a question pops up, “Should you take a festive loan for festivals?” 

The answer is both yes and no. Yes because you can use the amount from the festive loan to pay for some urgent expenses. No, because it may cause stress on your finances. 

Read on to learn more about the key aspects of festive loans and how you must use them. 

Festive Loans for Business

A business loan is a financial aid you get from a lender. You can use that money to invest in your business. It can help grow your business at a rapid pace. The lender charges you a specific rate of interest and defines a set period within which you must repay the loan. During festivals, a festive loan can help you stock more goods to meet the demand. 

For business reasons, a festive loan is one of the best ways to increase sales. You can use the loan amount to invest in your business venture and get decent returns. You can buy raw materials, develop your new units, and promote your products. A festive loan is a good way to take your business idea to another level. 

What are the benefits of taking a festive loan to invest in your business? 

There are several benefits of applying for a festive loan to fund your business. 

  • Meeting the consumer demands

As festivals near, consumer demands go high and to maintain sales, you have to ensure a constant supply. A festive loan can help you buy more raw materials and produce more goods to maintain stability and meet customer demands. 

  • Investing in equipment

To boost production, you have to upgrade the equipment and improve your manufacturing units. A festive loan could also be a good way to buy new machinery and adopt better technology. 

  • Advertisements and Marketing

Advertising and marketing your products are equally important. You can take a business loan to pay for these costs. This will help you get more customers and help boost your sales. 

  • Helps in Hiring

You might also need more people to control and manage all of your units. A festive loan can help you in hiring trained workers who will contribute better to the growth of your venture. They will help boost your production and also assist in better managing the operations. 

  • Website creation and media management

A festive loan can help you with the finance you need to promote your website and social media handles. This will help you to bring better reach and insights to your business. 

So, from a business perspective, a festive loan is a good option. But what happens if you take a festive loan for meeting your personal needs? 

Festive loans to meet personal needs

A festive loan might help you to cover your festival expenditure like buying new clothes, jewellery, or expensive gifts. But, taking a loan to cover all these needs is not at all a good lucrative option. Personal loans should be taken to pay for main expenses like financing a marriage, buying a house, funding higher studies, or processing a downpayment. But, taking them for the sake of splurging in the festivals isn’t a strategic move. 

Is it worth it to take a festive loan for personal needs and if not, then why? 

A loan will always compel you to tighten your budget no matter what. On top of that if the purpose of the loan is only to shop for festivals, then it is not at all the right decision. Some of the downsides of a festive loan for personal needs are: –

  • Financial stress

After you get your loan, you have to pay it back in the form of EMIs. Not only that, your lender will charge you a rate of interest on the principal amount and you have to pay it till you have paid all your dues. The downside is it will cause stress on your budget and you will have to compromise on your expenses. 

  • Product value depreciates over time

Whatever goods you buy during the festival, their value is going to decrease over time since they are not assets. For example, if you use a festive loan to buy a smartphone, within months, the price of the product is going to fall. So, all these goods that might give some pleasure for a short period, are not worth it to be bought using a loan. 

  • Unnecessary splurging

A personal loan is the best choice during an emergency, where you don’t have any other financial option. But, just for instant gratification, taking a loan is not the right action. In addition, it will only create more burden on you after this period gets over. 


To meet personal needs, a festive loan is not always a good option because it will cause further financial stress. But, to grow a business during a festive season, a festive loan is a viable option. You have to assess both these parameters and decide the reason for which you want to apply for the loan. 

In case you want to learn more about loans and investments, then you should definitely visit Piramal Finance. They have many good blogs and articles to help boost your knowledge.