Diwali 2025: How To Plan Diwali Loans And EMI Payments Stress-Free

Personal loans witness a steep surge every Diwali as individuals finance shopping, gifting, and interior renovations. Based on RBI data, personal loan growth reached nearly 13 per cent during Diwali year-on-year due to festive consumption. Stores and websites have launched Diwali offers with reduced interest rates and cashbacks, and it is irresistible to borrow. But majority borrowers forget repayment planning in the process of getting dazzled by discounts and offers.

Monitor Your Repayment Schedule

Before taking any festive loan, determine how much you can pay back easily. Ideally, your total Equated Monthly Instalments (EMIs), including existing EMIs, should not exceed 40 per cent of your salary. If your income is Rs 60,000, your total EMI expenditure should remain in the range of Rs 24,000. It's also important to inquire whether the lender has a flexible payment term or a prepayment facility. 

Do not Combine Credit Cards and Personal Loans

Most customers purchase credit cards and take personal loans during Diwali offers. This usually results in overlapping charges and interest. The cost of credit card interest can reach 42 per cent annually if the bills are not paid on time. If you intend to use a credit card, convert big spends into EMIs immediately rather than waiting for the due date. This gives you monthly expenses to budget for rather than unexpected debt later.

Keep Expenses Separate

A common mistake during Diwali is dipping into funds meant for rent, EMIs, or insurance premiums. Open a specific account or a wallet for all festive expenditure. It is simpler to monitor how much you're actually spending and refrain from impulsive withdrawals from savings. Preparing a tiny festive budget at the beginning of the month can save one from financial strain in November.

Look out for Cashback and Merchant Partnerships

Banks and non-banking financial companies give cashbacks or no-cost EMIs on certain purchases. For instance, a Rs 20,000 phone purchase on a no-cost EMI paid over six months translates into no extra interest if paid on time. However, skipping even one instalment may incur penalty fees. Carefully read the terms before joining any festive scheme.

If planned carefully, Diwali loans won't become a 12-month burden but can instead be used smartly. Here, the trick is to spend mindfully, not emotionally.