How personal loans from online lenders can help this festive season

The festive season is already here in a big way. As is the case every year, bearing the expenses for Dhanteras, Diwali and Bhai Dhooj in a single month can end up being a stretch for one’s wallet.

But there is nothing new in this story. Each festive season, the expenses end up overshooting one’s estimates and budget, thanks primarily to inflation, which keeps chipping away on individual savings. As for those who don’t bother to save for a rainy day or lack the inclination and time for budgeting, these expenses can feel like an additional burden, dampening the festive mood.

Whatever the case, certain expenses are important and need to be funded. Fortunately, a personal loan can be an individual’s best friend on such festive occasions since it could help enjoy those special moments in exactly the way they want. For those who do not have a credit card, a short tenure personal loan that is repayable in 90 days or less can be the next best alternative.

Unlike a home or car loan, there is complete flexibility on spending money availed from a personal loan. In other words, it can be used for numerous small expenses that keep popping up throughout the festive season even after all the purchasing has been done and dusted.

On the plus side, a personal loan is typically an unsecured loan. Therefore, there is no requirement to go through a long drawn and tedious process of pledging collateral. Most people tend not have any eligible collateral in the first place. Personal loans also allow repayment flexibility by giving multiple choices for the repayment period.

Besides, there are other benefits such as convenience and speed of availing the loan. With everything being digital, one can apply for a personal loan online from the comfort of their homes. If all the documents are handy, this takes barely a few minutes. Subsequently, the loan amount is disbursed into their bank account directly, almost instantly.

Unlike banks, instant loan apps do not rely on credit scores alone to assess borrowers. Instead they use artificial intelligence and machine learning algorithms to extensively analyze alternate data points that correlate with a borrower’s intention and ability to repay. This means that personal loan apps are now truly democratized and accessible to the vast majority of prospective borrowers.

Convenient and speedy personal loans from online lenders this festive season can help people meet their unplanned cash shortfalls and have a happier celebration with friends and family. As the country gears up to spend big both online and offline, it certainly helps to have a financial alternative that can step up in time of need.

(By Gaurav Jalan, CEO and Founder, mPokket)