The festive season in India is synonymous with joy, celebrations, shopping sprees, and family get-togethers. Whether it is Navratri, Diwali, Christmas, Eid, or Durga Puja, people often feel the urge to indulge in gifts, gadgets, home renovations, or even bigger purchases like vehicles.

To fuel this demand, banks and financial institutions roll out “festive loans”—personal loans or consumer loans offered at seemingly attractive interest rates with added perks like zero processing fees, cashback offers, or easy EMIs. Advertisement

But before you sign up for one, it’s worth asking: Are festive loans always a smart choice, or can they become a financial trap? Let us explore.

When festive loans are smart

1. For Planned, High-Value Purchases

If you’re eyeing a major purchase, say, upgradin

See Full Page