Personal Finance

What Is The Average Interest Rate On Personal Loan In Festive Season?

Personal Finance

The festive season is the most colourful and happiest time in the diaries of Indians. Banks and other financial institutions will never fail to surprise you during the festive seasons. A personal loan taken during a festive season will surely be a life-saver. Also, the personal loan interest rate during festive seasons will be affordable. In this article, you will find the average personal loan interest rate during festive seasons.

What is a Personal Loan?

A personal loan is an amount that you borrow from banks or other Non-Banking Financial Companies (NBFCs). You must pay interest till the repayment period for the principal amount in a personal loan. There is no need for you to provide security or collateral when applying for a personal loan, unlike a mortgage loan. The amount that you get from a personal loan is personal in practice. Because no one can question you on “where you have spent your money?”. This is one of the biggest advantages of a personal loan.

What is the average interest rate and benefits on Personal Loans during the festive season?

  • The festive season is the time when most of you will need money. This is to meet your needs like buying clothes, planning events, etc.
  • During the festive season, personal loanswill also surprise you. Because the personal loan interest rate will be lower than at other times of the year.
  • The average personal loan interest rate during festive seasons ranges between 10.00% to 24%.
  • The reason for low-interest rates during festive seasons is the higher demand.
  • The lenders will also give you a higher principal amount during the festive seasons. This will help you in multiple ways.
  • There will be other special offers during the festive season. It may include your repayment period, flexibility in repayment, etc.
  • Some lending institutions will also give special offers on processing charges. It depends on the amount that you avail from them.
  • You will also have quick approval during the festive seasons. You need not worry about delayed sanctions.

Note: The average personal loan interest rate will not be constant. It changes as per the lending institution and banks. The offers will also change during the festive seasons

What are the factors that affect your eligibility for a personal loan during the festive seasons?

Many factors decide your loan interest rate during a festive season. They include your age, credit score, occupation, etc. They are discussed in detail below.

Employment status

This is the basic factor. If you are an unemployed person, there is no chance. This is because of your inability to repay the interest. You can be a salaried employee or a self-employed individual.


Your age is necessary for fixing the principal amount. Most of the lenders fix 21 years to 60 years. The age criteria are different for different lenders. The minimum is your age, maximum will be the chance for a personal loan.


The years of experience and work in the same industry will be considered. For example, person X has a working experience of 3 years and has changed 3 different fields. But person Y has a work experience of 10 years in the same industry. Without a doubt, the lender will prefer person X to person Y for a personal loan.

Credit (CIBIL) score

A credit score is important for personal loans and other financial activities. CIBIL Score shows your credit history. This scale ranges from 300 to 900. It is always advised to have a minimum CIBIL score of 700 to avail of a personal loan. If you have a low credit score, don’t worry. You can improve your CIBIL score. So it is better to check your credit (CIBIL) score online before planning for a personal loan.

Financial discipline

The lenders will also consider past repayment history for a personal loan. This will make your profile low-risk. This includes timely payment of EMIs and interest rates.

The reputation of your organisation

If you are a salaried employee, your organization’s reputation will also help. If yours is a well-known company, the chances will be high.

What are the benefits of a Personal Loan?

Minimum Documentation: We’ll ask you only for a few basic documents. This will not only save you time but reduce your burden. They are the proof of your identity, address, and your income. Check the documents required in advance to avoid a last-minute rush.

Principal Amount: We provide principal amounts even from Rs.1 Lakh.

Quick Sanction: We will sanction the amount as soon as possible, but also disburse funds quickly.

Use as you wish: You can use the principal to finance any of your needs. It may be your dream vehicle or your medical emergency.

Low EMI: We will never charge high-personal loan interest rates. It will be decided only by your ability and creditworthiness. This will also help in easy cash management.

Flexible Repayment Period: To pay your interests, you can choose any method (fixed type, floating type, or hybrid type). You can also pre-close and pre-pay. It ranges from 12 months to 60 months.

Zero Pre-payment and Foreclosure charges: Before the period, if you have a bulk amount, you can pay off the loan. We won’t charge extra for pre-closing your loan.


We hope you are clear on why you should take a personal loan during the festive seasons. As festive seasons are on the way, Piramal Finance wishes to light up your lives by lowering your personal loan interest rates. If you wish to take a personal loan at zero pre-payment and foreclosure charges, get in touch with us. We work with a team of experts to assist you in every financial step of your life. To read more about other financial topics, you can visit Piramal Finance whenever you wish. Wishing more diyas glowing in your life!