Financing electronics this Diwali: Is a festive personal loan the smart way to upgrade?

From smart TVs and home appliances to high-end phones, electronics are leading the festive sales. Not to forget the exclusive deals on work-from-home set-ups too. With such Diwali offers in full swing, it’s natural to crave for upgrades. However, the hefty price tag shouldn’t overwhelm you. This is where a personal loan comes to your assistance. Learn how this festive loan works and a breakdown of its pros and cons to help you make a smart choice with your electronics purchase.

What is an electronic personal loan?
 

An electronic personal loan is an unsecured loan that assists you in purchasing gadgets and home appliances like TVs, laptop, smartphones, refrigerators, washing machine, and smart kitchen devices. With this Diwali loan, you avoid the burden of paying the full upfront amount or maxing out your credit card. It lets you break your purchase into manageable EMI over a fixed tenure, you choose.

You can apply for an electronics personal loan directly through your bank or compare other lenders’ festival loan offers. Doing so will allow you to access modern banking services like IDFC FIRST Bank’s FIRSTmoney personal loan, with instant approvals.

Pros and cons of using a personal loan for electronics
 

While a personal loan makes shopping for electronics easier, it is a financial decision. So, it becomes crucial to evaluate its pros and cons to make an informed decision. Here is what you need to know about this festive loan:  

Pros
 

· Quick and hassle-free approvals

Festive shopping shouldn’t wait, and neither does the disbursal of funds with personal loans. Most of these festive loans include instant approval where the money is credited into your account in a matter of hours. For example, you can get a FIRSTmoney personal loan for electronics in as little as 30 minutes.

· Large borrowing limit

If your shopping list is extensive, personal loans make up for a high borrowing limit. The exact amount you receive depends on your age, income stability, credit score, and existing debt. With a FIRSTmoney personal loan you can borrow in a range of ₹50,000 to ₹10 lakh depending on your eligibility.

· Predictable EMIs

You choose the EMI and the tenure on a personal loan for electronics. You know what’s due every month and for how long. This makes budgeting easier with no surprises.

· Attractive interest rates

Personal loans typically come with competitive interest rates, and during the festive period, they get even sweeter. Many lenders roll out festival loan offers with reduced rates, discount in processing fees, and other benefits. You can get low interest rates on personal loans offered by the IDFC First Bank starting at just 9.99% p.a.

· No collateral requirement

As it is an unsecured loan, you need not pledge any security to avail of a personal loan for buying electronics. So, you enjoy your Diwali shopping without having to risk anything to borrow funds.  

Cons
 

· EMIs are a commitment

Once you take the Diwali loan, after the high of festive shopping comes the reality of monthly repayments. It’s important to prepare for EMIs and budget thoughtfully to avoid defaulting.

· Impact on credit score

If there are frequent delays or misses with your EMI payments, your credit score gets affected, which jeopardises your future borrowing eligibility. Hence, it helps to borrow what you can afford and plan your repayments proactively.

· Hidden charges

Some lenders may charge a fee if you plan to prepay or foreclose a personal loan. This is usually a nominal charge, but it’s worth checking in advance.

Calculation of EMI for electronic loan: How it works
 

It is wise to calculate EMI for electronics loan beforehand, plan your repayments and borrow without the stress. The process is simpler than you may think. The computation depends on three main factors: your loan amount, the interest rate, and the repayment tenure.

Let’s take this example to understand better. Suppose you borrow ₹50,000 or ₹1,00,000 with an interest rate of 10%. Now, let’s calculate what the EMI would look like over the tenure of up to 36 months to give you a clear picture for the common amounts and tenure.

As you can see, the amount reduces as the tenure stretches, but the interest cost adds up. You can calculate EMI for this Diwali loan the same way using a personal loan EMI calculator. Find this handy tool on lenders’ websites like IDFC FIRST Bank and simplify your planning.

Should you go for a Diwali loan? A quick borrowing checklist to help you
 

The idea of financing electronics with a personal loan seems appealing, but you’re still on the fence? Consider this checklist to help you decide if this festive loan is right for you:

· Evaluate your income stability

Make sure you can repay the EMI comfortably every month without dipping into your savings. Take stock of your financial situation and see how a festive loan fits into it. If your cash flow feels tight or irregular, it’s better to wait or choose a lower loan amount.

· Consider loan tenure wisely

Longer tenure lowers your EMIs but increases the total interest. The opposite holds true for a shorter tenure. It’s best to strike the right balance based on your budget. See how that works for you to decide on the loan application.

· Factor in the product lifespan

The electronic devices you choose to purchase with the festive loan should make good investments. Consider their relevancy and value in the coming years. Align the loan with the product’s practical usage to avoid unnecessary borrowing.

· Compare offers before you choose

Compare your options before you hit on the apply button. You can use eligibility calculators that can give you an estimated loan amount you are eligible for from a particular lender. Also factor in all the costs before opting for a particular lender.

Smart tips to get the maximum value out of a festive loan
 

You can compare lenders and grab the best personal loan offer during this festive season. Besides this, you can use the following tips to make the most of the festive loan to save more this Diwali:

· Combine discounts with loan offers

During Diwali, brands and shopping platforms roll out mega offers, as do banks with festival loan offers. Combining both is a great way to reduce your borrowing cost.

· Choose a shorter tenure

As discussed, a shorter tenure is ideal to lower the overall interest. Thus, if your budget allows, clearing your EMIs in a limited period is the best way to make the festive loan affordable.

· Avoid overborrowing

Borrowing more to maintain a buffer may seem practical, but it works against you. It increases the overall loan cost. So, decide on the loan amount that you can comfortably repay.

· Use on-demand loan facilities

Look for app-based, convenient festive loans, like IDFC FIRST Bank’s FIRSTmoney instant personal loan that offers quick approval, flexible terms, and easy application.

Why Consider FIRSTmoney Personal Loan for Electronics Purchase
 

The FIRSTmoney Personal Loan from IDFC FIRST Bank makes your electronics purchase convenient with:

· Instant Disbursal: Get loan disbursal up to ₹10 lakh in as little as 30 minutes.

· Flexible Repayment: Choose a tenure between 9 and 60 months to suit your monthly budget.

· Zero Foreclosure Charges: Close early without paying any extra fees.

· No Collateral Required: Enjoy an unsecured personal loan — no assets pledged.

· 100% Digital Process: Apply online with simple KYC and eligibility checks, no paperwork.

Whether you’re purchasing a new laptop, smart TV, or essential home appliances, FIRSTmoney Personal Loan helps you upgrade your electronics responsibly and conveniently.

Conclusion
 

With the right planning and clear understanding of pros and cons, you can leverage a personal loan for electronics to fund your festive purchase wholeheartedly. Going prepared with the EMI calculation, checking your loan affordability, and techniques to save, help you borrow responsibly.

Want to know you much you’re eligible for shopping for your favourite gadgets? Try IDFC FIRST Bank’s personal loan eligibility calculator and get started.