Festive season shopping: Strapped for cash? Here are 5 ways to fund your big purchases

Big ticket purchases such as a house and car can be financed through a house loan and a car loan, respectively.

Festivals always see a surge in demand for big-ticket items such as cars and consumer durables, and to tap this market, shopkeepers come up with new sales and attractive offers to lure customers. While some people wait for this time to arrive to buy things at a reasonable price, some decide to purchase things last minute looking at the offers running.

If you have missed out on planning these purchases in advance, here are a few ways to fund your big purchases:

Go For a Loan

Big ticket purchases such as a house and car can be financed through a house loan and a car loan, respectively. You can even opt for a two-wheeler loan for buying a two-wheeler. For purchasing electronic appliances, you can go for a consumer durable loan offered by various banks and financial institutions. For any other miscellaneous purchases, you can avail a personal loan. Personal loans these days are pre-approved and can be availed in very little time.

Use Your credit card

Credit cards allow you to ‘buy now and pay later’, increasing your purchasing power for things beyond your means. However, make sure the amount you spend is within the credit limit allowed in your card and you have a repayment plan in place. Try to pay the bill before the due date and do not spill it over to the next month. This will not just reduce your interest outgo but also keep your credit score from dropping. You could also convert your bills into EMIs for big purchases through credit cards and spare yourself from lump sum payments.

Go For EMIs

Many companies through tie-ups with credit card companies and financial institutions offer the EMI option on purchases. This option is typically available on purchase of mobile phones, tablets, computers and other consumer durables. The down payment is usually zero and the interest is nominal. It allows you to purchase expensive goods at a time when it is beyond your affordability and pay for them over a comfortable period of time.

Borrow From Friends And Family

Even if you are a planned shopper, you might fall short of a certain amount while purchasing such big items. You can rely on your friends and family in such situations to borrow some cash and repay them when it is comfortable for you. This would help you save up on the interest money.

Dispose of Your Old Assets

Besides the above-mentioned choices, you also have an option of doing away with your old assets to finance a new one. This way you would also get rid of the unused product, especially in the case of buying a new car. You can dispose of your old vehicle to make down payment for a new one. The remaining amount can be converted into EMIs.

For the next festive season, it would be wise saving up in advance. You can set aside a small amount every month from your expense.

(The author is CEO, BankBazaar)