Personal Loan

Taking Out A Personal Loan This Christmas Will Make Gift-Giving Easier


Christmas is just around the corner! The season of festivities and gifting is fast approaching. But are you facing a year-end financial crunch? You’re not alone if the thought of holiday spending makes you feel more anxious than joyful. Why ruin the holiday spirit when a personal loan is so simple to obtain for all your gift-giving requirements?

Certainly, a personal loan can help you with your initial financial stress. However, it can also enable you to purchase the most anticipated gifts without burning a hole in your wallet.

If you’re planning on going on a gift-giving binge for Christmas, consider getting a personal loan.

What exactly are holiday loans?

When researching your holiday options, you may come across lenders offering “Christmas loans.” In reality, they’re offering a personal loan to those who need a little extra cash during the Christmas or other winter holiday season.

A holiday loan or Christmas loan may be secured or unsecured, much like other personal loans. Your credit score and income are just two of the many variables that affect your terms and eligibility and differ depending on the lender. You must have good credit to be eligible for the most enticing terms and the lowest interest rates.

What are the benefits of getting a loan for Christmas?

  • Access to Instant Funds

Eligible candidates may be offered personal loans up to Rs. 25 lakh at reasonable interest rates with flexible 12- to 60-month payback terms. As a result, you may select an amount for a personal loan for Christmas that meets your financial requirements.

To prevent rejection, you should make sure that your current EMIs include credit card debt. You should not be spending more than 50–60% of your monthly salary. This method of budgeting is critical because it accurately assesses your ability to repay the loan and allows for quick loan approval.

  • How to Responsibly Avoid Lending More Than You Should

Utilizing Christmas loans is a cost-effective approach to satisfying your urgent financial wants. Personal loans also do not require you to present any collateral to borrow money. This also ensures that you can pay off your loan in 12 to 60 months by keeping your monthly instalment amounts well within your means of payment.

  • Take Advantage of the Finest Offers, Coupons, and Promos

December is the time of year when a variety of digital sites and offline retail establishments offer amazing discounts and bargains. You may shop till you drop without having to pay full price for the same things.

Therefore, to complete your Christmas shopping at a lower cost, it can be a wise decision to take out a personal loan. If you’re worried about monthly payments, you can use our personal loan EMI calculator to find out exactly how much you have to pay back.

Downsides of personal loans for Christmas

Most types of credit carry risks for both the lender and the borrower. Here are a few drawbacks to consider before applying.

Fees: A prepayment penalty or an origination fee may be assessed by some lenders. These extra costs might pile up.

Affects credit ratings: Defaulting on a loan or making late payments can hurt your credit ratings. Pay close attention to the expected payment amount to make sure you can afford the payments.

Your financial situation could get worse: If you can’t pay back your Christmas loan because of high interest rates or short repayment terms, you could make things worse.

Always make sure to check the costs, rate of interest ranges, loan balances, monthly bills, and borrower criteria for various lenders while searching for a Christmas loan or holiday loan. You can uncover the best loan alternatives for you by comparing loan providers and loan types.

What should you take care of when looking for a personal loan on Christmas?

Here are a few things to think about if you continue to believe that a Christmas loan is your best choice.

Prequalification: You can prequalify with some lenders by obtaining a soft credit check, which will not affect your credit scores. By submitting any prequalification applications. You can reduce the number of lenders on your list and compare offers.

Instalments and repayment terms: Christmas loans are instalment loans with predetermined repayment terms and monthly payments.

This implies that they will be required to make monthly payments over a set period. Make sure you can afford the payments and factor them into your budget.

Rates of interest: Depending on the terms of the loan and the state of your credit, personal loans often offer lower interest rates than credit card interest rates. Look closely at the terms and numbers to see if a personal loan will save you more money than a credit card.

If accepted, the cash is available immediately: When you choose an online lender. The application and funding processes are frequently quick and easy. You may even receive your loan the same business day if you are accepted, giving you extra time to get ready for the holidays.

Final Words

The holiday season is the perfect time to unwind and celebrate. However, this pervasive perspective on the holiday suggests excessive spending on gifts, lights, celebrations, and other things. It could potentially cost a lot of money. Lack of financial preparation before this month of festivities may result in many sleepless nights and anxiety.

For effective financial planning and budgeting, visit Piramal Finance ( It is an Indian financial services company that is making its foray into retail lending, which includes personal loans, business loans, housing loans, and other consumer-focused finance products.


  1. Why do you need a personal loan for Christmas?

A personal loan requires no security. In light of this, choosing a personal loan for Christmas shopping and other seasonal needs may be beneficial in many ways.

  1. What are the criteria for a personal loan? 

Instant loans are often not subject to a credit check. You must, however, give personal details, be at least 18 years old with proof of identity, provide evidence of income (e.g., a pay slip), and have a bank account.