Published on Feb 3, 2025Updated on Feb 17, 2025
Many people delay or even cancel their major purchases due to financial constraints, being apprehensive of the depletion of their savings or disruption to their monthly budget. Whether it's buying the latest gadget or renovating a home, these big purchases often feel out of reach.
Personal loans for shopping, or shopping loans, can provide a practical solution, allowing you to cover the costs of high-value items or projects without putting a strain on your finances.
This article will discuss the top 10 advantages of personal loans for financing your major expenses.
A personal loan for shopping is an unsecured loan that helps you cover big-ticket expenses such as kitchen remodelling or furniture overhaul. These loans are valuable as they allow you to finance such large purchases without significantly impacting your monthly budget.
A personal loan helps you avoid depleting your savings for big expenses. Instead, you can spread the cost over manageable monthly instalments, ensuring you retain enough savings for emergencies or other essential needs. This keeps your finances stable and reduces future stress.
Personal loans come with a fixed tenure and interest rate, meaning you know exactly how much you’ll pay every month. This predictability simplifies budgeting and ensures there are no unexpected changes in your financial obligations – unlike credit cards, which may have variable interest rates.
Personal loans often come with lower interest rates than credit cards, which helps reduce the overall cost of borrowing.
Personal loans are often approved and disbursed swiftly, making them ideal for urgent purchases or when you need to secure a deal quickly.
One of the key advantages of shopping loans is that they are unsecured. This means you don’t need to offer collateral like your home or car. For borrowers who do not have significant assets to pledge, this makes personal loans a highly flexible financing option.
Depending on your eligibility and the lender's policies, you can access substantial loan amounts, as high as INR 30 lakhs*. This makes personal loans an excellent option for borrowing for big expenses.
Unlike traditional offline loans that involve extensive paperwork, personal loans require minimal documentation. This speeds up the loan process and makes borrowing more convenient.
Timely repayment of personal loan EMIs can help improve your credit score. A higher credit score not only strengthens your financial credibility but also increases your chances of securing better loan terms in the future.
Many lenders offer a 100% paperless application process. From document submission to application status tracking, the process is straightforward and can be completed online, saving you both time and effort.
By spreading large expenses over time, personal loans allow you to manage your finances without overburdening your monthly budget. This flexibility lets you prioritise other commitments without unnecessary stress.
Eligibility criteria for personal loans vary by lender, but applicants generally need to meet specific requirements related to age, credit score, income, existing financial obligations, and employment history, among other factors.
A personal loan for shopping can serve as the financial bridge you need to turn your big aspirations into reality. Beyond offering convenience, timely repayment can help strengthen your credit profile, providing long-term financial benefits.
If you’re planning a significant purchase, SMFG India Credit’s personal loans can provide the financial support you need. Access funds of up to INR 30 lakhs*, with interest rates starting at 13%* per annum*, and flexible tenures ranging from 12 to 60 months*. Apply online today or contact us for more details.
* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us
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