4 Things to Consider Before Taking a Loan During This Festive Season

As the longest festive season in the year gets underway, you might want to do something different like among others, renovate your home, buy new items or even gifts and other goodies for your loved ones.

And since the festive season is an auspicious period, you may even think of taking a small loan to fulfil these wishes. You could go ahead and just do that to make your dreams come true! However, there are a couple of factors you need to consider while taking a loan during this festive season to ensure that you not only enjoy yourself and loved ones, but also maintain your financial health in good shape at the same time. Below are some of the considerations: 

1. Have a realistic estimate of your goal

Its the time of celebrations and you might be over-enthusiastic about the festivities. But at the same time, you must have a realistic estimate of your loan requirement. 

It is not a bad idea for instance, to draw up a budget for all the expenses you plan around the festive season to come up at a final figure.

2. Take into account your repayment capacity

Do not forget that we are not yet out of the clutches of the pandemic, though everything seems to be getting back on track. So, take a loan this festive season, only if you are sure of a stable income and can repay the loan without any hassles.

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3. Carry out a comparison of the terms and conditions of the loan

You may be excited to have a great celebration this festive season by making the best use of offers and discounts available. But you should not forget to carry a comparison of the various terms and conditions, including interest rates, ease of application, speed of disbursal among others.

4. Make sure you do not miss out on loan payments

A loan is a contract between the lender and the borrower that the borrowed amount is paid back on time at the agreed rate of interest. 

It is good to ensure that the loan amount that you borrow is essential and is within your repayment limit. If you do this you will never miss on your loan payments. Missing or postponing your payment may negatively impact your credit score and your chances of getting loans in future.

In conclusion, celebrate your festivities with loved ones the best way possible but do not forget to be responsible with your finances and loans.

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