Summary of this article
The festive season, especially around Dussehra and Diwali, is considered an auspicious time for big purchases like homes. Banks and developers roll out special offers. However, buyers should carefully review the fine print, verify developer credibility, and ensure affordability before committing.
The festive season in India is a time when people make their biggest purchases, with visitor and transaction volumes typically rising by 25–30 per cent. Considered an auspicious period, it is also a preferred time for making big-ticket purchases such as houses and vehicles.
Both merchants and lenders capitalise on the festive spirit by offering special deals and easy credit options that help buyers fulfil their aspirations. As a result, during the Dussehra-Diwali period, not only do applications increase, but approvals also rise correspondingly.
If you are looking to buy a house, this Diwali may be a good time to do so. Here's why:
1. Festive Offers & Lower Interest Rates: Banks and non-banking financial companies (NBFCs) often launch special Diwali offers, including special interest rates and processing fee waivers to attract borrowers. For instance, Bajaj Finserv is offering home loans with interest rates starting from 7.45 per cent and having flexible repayment terms up to 32 years, while Axis Bank's home loans start from 7.40 per cent.
Even your processing fee can be as much as Rs 10,000, depending on the loan ticket size and the lender. This can be waived during festive times. All this can reduce your total cost of ownership.
"A home loan is a long-term commitment that sees several up and down interest cycles over its duration. Even a small reduction in the interest rate can mean significant savings over time," says Adhil Shetty, CEO, BankBazaar.com.
2. Developer Discounts & Schemes: Many real estate developers offer Diwali discounts, free amenities, EMI holidays, flexible payment plans and more during the festive season, making it easier to buy a home. Some developers also launch new housing projects around the festival season because they want to harness festive buyer sentiment. This provides users with multiple available options to select their preferred units. Also, the market contains numerous inventory options, providing better deals for buyers because of the intense competition among sellers.
3. Pre-Approved Offers: During Diwali, many banks roll out pre-approved loan offers for existing customers based on their credit profile, enabling quicker disbursal with minimal paperwork. Lenders also tend to expedite processing during the festive season in response to customer demands, improving chances of approval.
4. Improved Credit Deals: This is a peak season for the lenders as well, and they are more likely to compete for high-quality borrowers. "If you've been maintaining a good credit score, the festive season gives you additional leverage to negotiate better terms and customised repayment plans," says Shetty.
Precautions To Take
However, while the festive season may be a good time to buy your dream home, you also need to take some precautions. For instance, the limited-time offers function as promotional campaigns. You need to meet the application deadlines and submit documentation on time to avoid losing their special rate or waiver benefits.
Moreover, promotional deals for festive seasons might not include all customer groups because they may need customers with high credit scores, and they can restrict their deals to specific properties from particular developers. The fine print requires your complete attention.
Many developers promise fast delivery of projects and amenities during festivals, but they tend to commit to more than they can handle. Verify their track records. Festivals also come with many expenses. So, ensure that taking on a new EMI doesn't strain your finances.
