Dr. Sanjiv Agarwal

Once again festive season is on our head. While next three weeks are going to bring in cheers and happiness to all of us, with festive mood and sentiments dominating the activities, such a celebration calls for spending a lot. Spending may not be that easy as we face mounting inflation across the board. High interest costs leading to higher EMIs on loans to be taken for buying consumer durables or a dream car or even a house. It calls for an extra liquidity which will have to be thought of.

One way of looking at the spends could be to curtail the list of items on the to be bought list, of course depending upon the need. But if one has been waiting for this time only to buy, then there must also be some plan in place to fund it. If yes, go ahead. Similarly, do not take loans to buy gold or silver this time. The prices are already too high for any fresh buying or even investing, if not absolutely necessary.

During diwali, many employees get diwali bonus from their employers which can be used to finance such purchases. For consumer durables such as electronic items, furniture & fixtures or even a car or mobike, one can opt for an EMI scheme so that payments get staggered and there is no immediate financial crunch on the liquidity. In case of housing –  be it a new buying or undertaking a major renovation or furnishing, one can go for housing finance schemes from any bank or a finance company.

There can be yet one more option – take a dig at your investment portfolio including that of mutual fund holdings where you feel that you may get a better and profitable exit option, go for it. The money you get can be used for festive buying.

While choosing a loan or EMI scheme, one should be careful of hidden charges and interest rates. Choose the one which also suits your pocket as you only will have to make the repayments.

Value for money could also be enhanced by clinching better bargain with the vendor as at times, you may get a good add on by way of freebies or an upgraded product. It may be a win-win situation for all- you, the vendor and the financier.

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September 2021