People stock up on festive purchases in their shopping carts even before the festival comes. But, wage cuts and job losses due to Covid-19 have lowered the purchasing power of many people. However, with access to a variety of credit options like personal loans, credit cards, and BNPL loans, people have found a way to finance their festive spending. 

The pandemic hit the finances of many, and it may be the case that to make your loved ones happy, you may have to rely on loan credit for festive shopping. The Indian populace is using financing options to finance their purchases. But, with so many financing alternatives, you must find which option is best for you.

It has been close to two years since Covid-19 struck India. Diwali and Christmas of 2020 didn’t go well for the Indian populace and the Indian economy. However, people are thronging marketplaces for festive shopping at the end of 2021. 

Financing options for festive shopping

Below are the pros of using personal loan apps, credit cards, and buy now pay later platforms to finance your festive shopping:

  • Instant personal loans: The interest rates of credit cards are higher. So, you can consider an instant personal loan for a small to high credit requirement. Check the personal loan apps eligibility criteria to see if you are eligible for the loan. The loan is approved within a day, and the loan disbursal time is between one to two weeks. 
  • Credit cards: Credit cards can offer interest-free credit for up to around 45 days. You can even convert the sums due into 12-month EMIs. You can also get cash back and reward points with credit cards but see to it that you are comfortable with their interest rate. 
  • Buy Now Pay Later: BNPL is an excellent option for small-ticket purchases ranging from ₹2,000 to ₹8,000. The service lets you purchase things and pay for them after a set number of days. You get instant credit approval and a typical interest-free duration of up to 15 days with BNPL. However, if you fail to pay the amount on time, you are charged interest based on the amount owed.


Personal Loan App


Click Here to Apply for Instant Personal Loan from the PaySense Website.

Check Loan Eligibility

For online shopping or buying white goods, BNPL can be preferred as they can provide 0% EMI loans. But you have to pay back the amount within a short set duration. 

A personal loan is an appropriate financing option for demands that are more open-ended in nature, like upgrading your home, preparing a family gathering, etc. Instant personal loans are accessible online comprehensively and inexpensively.

Comparison between personal loan, credit card, and BPNL

If you have a credit card, it is a good choice for your credit requirements. If you do not have a credit card, BNPL is also a nice option. Credit cards may provide a better interest rate than BNPL if you want to buy an item on EMI. Also, BNPL buys are limited to a single purchase from one merchant, whereas you can use credit cards to make a wide range of transactions.

BNPL either charges a fixed fee or does not charge anything at all. They are clear about how much it will cost. However, long-term loans from BNPL of up to 48 months have an interest rate similar to that of personal loans. Also, unlike a personal loan or credit card, many BNPL providers do not check customers’ credit scores, making financing accessible to many.

A personal loan is the most preferable option out of all for large-ticket purchases. PaySense offers personal loans perfect for festive shopping from ₹5,000 to ₹5,00,000 for a term of 3 to 60 months with an Annual Percentage Rate (APR) between 16% to 36% on a reduction balance basis.

Anil Sumra

Anil Sumra is a Digital Marketing Expert with more than 10 years of experience. He loves to write on various financial topics online to create financial awareness. He holds a bachelor’s degree in Finance & Management.

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