Leading Banks in both public and
private sectors cash on the festive season by offering loans at cheaper
or discounted rate. There is a surge in consumer spending during
festivals. Banks attract more customers by offering lower rates of
interest. Festival loan is however, a variant of personal loan. It is
extremely convenient for people who want a small loan, can repay early
but do not want to pay interest at the exorbitant rates levied by most
banks
Maximum Loan offered by Banks for Festival Loan:
Festival
loans are given for amounts as low as Rs 5,000 and the maximum amount is
limited to Rs 50,000. Festival loans are generally restricted to 12
months. Repayment can be done by Equated Monthly Installments or EMI.
The loan size is smaller and the repayment period is shorter than that
for personal loans.
Interest Charged by Bank on Festival Loan:
Rates of interest
charged will be as per Bank's policy on the date of disbursement of
loan. Rate of Interest is discounted during the festive season. Thus it
is lower than the normal days.
Process of Festival Loan Application:
Borrowers can fill a
form at the bank and apply for the loan. The processing fee is also
lower than personal and other loans. Banks generally charge Rs.100 as
processing fee irrespective of the quantum of loan
Documents Required for Festival Loan:
Salaried Individuals:
- Passport size photograph.
- Residence Proof.
- Salary Certificate / Slip from employer.
- Form No.16 (Latest).
- Form No.135 of the bank, duly filed in by borrower and guarantor.
- Application forms meant for personal loan ( festival loan )
Self Employed Professionals:
- Passport size photograph.
- Proof of official / Business address, which may include
establishment certificate telephone bill etc.
- IT returns & financial statement for the last two financial
years.
- Copy of registration / License / Govt. approval required to
pursue the profession, if any.
- Proof of qualification (Certificate issued by the Concern
University / Collage / Institute, Dept as the case may be).
List of Leading Banks Offering Festival Loans:
