Planning to buy a fridge, washing machine or a new car during the festive season? Know how to get an easy loan

Planning Festive Shopping? Here’s How FD, Gold or Property Loans Can Be Smarter Than Personal Loans

Festive Season Loan 2025: The festive season often brings a surge in expenses. From buying a refrigerator, washing machine, or AC at heavy discounts to planning for a new car or even a house, the need for cash rises sharply during this time. While many rush for personal loans, financial experts suggest that borrowing against existing assets such as FDs, gold, property, or shares can be a smarter and cheaper alternative. Here’s how each option works.

Loan Against FD – Secure & Low-Interest

Banks usually offer 70%–90% of the FD amount as a loan. For example, with a ₹5 lakh FD, you can get up to ₹4.5 lakh as a loan. The interest rate is only 1–2% higher than the FD rate, making it much cheaper than a personal loan or credit card. Plus, your FD continues to earn interest while it is pledged.

Gold Loan – Fastest During Festivals

Gold loans are one of the most popular options in India during festivals. Banks and NBFCs generally offer up to 75% of the gold value. For instance, if your jewelry is worth ₹2 lakh, you can borrow up to ₹1.5 lakh. Processing is quick—often within hours—and repayment can be made via EMI, bullet payment, or overdraft. But remember, defaulting can lead to auction of your gold.

Loan Against Property – For Bigger Expenses

For big-ticket expenses such as weddings or home purchases, a loan against property works best. Banks typically provide 50%–70% of the property’s market value. For example, if your home is worth ₹80 lakh, you may get ₹40–56 lakh as a loan. The interest rate is lower than personal loans, but approval and disbursement take longer.

Loan Against Shares & Mutual Funds

Investments in shares, bonds, or mutual funds can also be used as collateral for loans. Lenders usually offer 50%–70% of the market value. The biggest benefit—your investments continue to grow without needing to liquidate them. However, if markets fall, the bank may ask for additional security.

When Should You Take a Loan Against Assets?

If you need short-term liquidity but don’t want to break long-term savings, this is a practical choice. It’s cheaper and safer compared to personal loans or credit cards. But a clear repayment plan is crucial, otherwise you risk losing your pledged assets. Also, use such loans only for essential spending, not for unnecessary festive shopping.