The holiday season is upon us and people are getting ready to shop, especially after the state restrictions eased. According to a recent Axis My India survey, overall consumer sentiment has increased by 5.5 points as 42% of Indian families look to spend more or as much as last holiday season.
Another Deloitte poll said consumers would buy more discretionary products, resume leisure travel and be more confident going out during the holiday season.
Madhusudan Ekambaram, co-founder and CEO of KreditBee and co-founder of FACE, says: “Big purchases like automobiles and electronics are likely to increase during the holiday season, starting in October. Consumer motivation also increases with great discounts and offers available during this time.
According to industry data, for spending needs, consumers have shown an affinity for financing options for managing debt, spending, and saving. Ekambaram adds, “Digital lenders and financial institutions are supporting them in this offering, offering personalized and efficient financing alternatives. This allows consumers to spend without depleting cash flow and hampering their working capital. “
That being said, while opting for financing, experts say that borrowers should be mindful of certain considerations, keeping in mind the current dynamic circumstances.
1. Borrow what you can repay: It is crucial for everyone to properly assess their borrowing needs and appetite. Experts say don’t get carried away by tempting discounts or a party spirit and end up with more debt than can be managed because finance products have interest rates and other expenses partners that could pose difficulties in paying for IMEs on time.
“Make appropriate allocations of capital for needs, wants and savings. This will allow borrowers to determine the role of the amount financed in spending, ”explains Ekambaram.
2. Choose the right type of financial product: There are multiple financing products, tailored to the varying needs of borrowers. You have to pay attention to parameters such as tenure, amount and interest rates. Industry experts say that some products, such as small loans, can be used for smaller expenses or emergencies.
Ekambaram says that “Online Purchase Loans and Buy Now Pay Later (BNPL) have become products of choice for multiple borrowers that offer convenient financing. “
3. Compare offers from different lenders: With the many options of financing products and lenders, you should always compare to come up with the most suitable mix for your financing needs.
Ekambaram points out that “digital lenders should be compared against basic parameters such as their authenticity, their product offerings, their interests and whether there are any hidden fees associated with their products.”
With the growing financial awareness and the importance of digital loans, smart spending has increased. Experts say that in order to enjoy shopping during the holiday season, borrowers need to be prudent about saving and effectively evaluate the various alternatives available to them as well as consult with lenders to come up with the most suitable financing product.