Mid-Day has carried a guide on applying for a personal loan online if you're planning a Dhanteras purchase. In short, you can apply from your phone in minutes. But the loan is only worth it if you understand what it costs.
A personal loan is money you borrow without pledging anything. You repay it in monthly instalments with interest. Before you apply, check the rate, the fees and the EMI. EMI means equated monthly instalment, the fixed amount you pay each month.
Key takeaways
- Mid-Day reports on how to apply online for a personal loan before Dhanteras.
- Personal loans are unsecured, so rates are usually higher than for gold loans.
- Fees like processing charges can add a few thousand rupees to the cost.
- Compare at least three offers and use an EMI calculator first.
- Borrow only what your monthly budget can repay comfortably.
How an online personal loan works
You pick a lender, fill a form and upload your KYC papers. KYC means know your customer, the ID check every lender must do. The lender looks at your income, your credit score and your existing loans. Then it offers an amount, a rate and a tenure.
If you accept, you sign digitally. The money usually reaches your bank account after approval. Timing depends on the lender and how complete your papers are. Mid-Day's guide covers this online route.
A credit score is a three-digit number that shows how well you've repaid past loans. A higher score often brings a lower rate. You can read more in our personal loan guides.
What a Dhanteras loan really costs
Let's use a simple example. Say you borrow ₹1,00,000 for 12 months at 14% a year. Your EMI comes to about ₹8,979. Over the year you'd pay about ₹1,07,750. That means roughly ₹7,750 goes to interest.
Now add the processing fee. Many lenders charge around 1% to 3% of the loan, plus 18% GST on that fee. At 2%, the fee is ₹2,000 and GST is ₹360. So the true cost is closer to ₹10,100.
The rate matters a lot, even on a short loan. Here's how three rates compare on ₹1,00,000 over 12 months.
| Yearly rate | Approx. monthly EMI | Approx. total interest |
|---|---|---|
| 12% | ₹8,885 | ₹6,620 |
| 14% | ₹8,979 | ₹7,750 |
| 16% | ₹9,074 | ₹8,890 |
These are illustrations, not offers. Your actual rate depends on your lender and your profile. Try your own numbers on our EMI calculator.
Steps to apply online
- Check your credit score and your monthly income and expenses.
- Use the eligibility check to see what you may qualify for.
- Compare rates, fees and tenures from at least three lenders.
- Confirm the lender is a bank or an RBI-registered NBFC.
- Read the loan agreement, including prepayment and late fees.
- Upload KYC papers and sign only on the lender's official app or site.
- Check the final EMI before you accept the money.
Who should think twice
If you want gold, a personal loan is not your only door. A gold loan flips the idea. You pledge gold you already own and borrow against it. Rates there are often lower, as the lender holds security. See our gold loan hub to compare.
Borrowers with a thin credit history may get higher rates. People with several running EMIs should be careful too. A good rule is to keep all EMIs under about 40% of monthly income.
Also watch out for fake loan apps around festivals. If an app asks for upfront fees or phone gallery access, walk away. You can check unauthorised entities through RBI's Sachet portal.
Frequently asked questions
Can I get a personal loan for buying gold?
Most lenders don't restrict how you spend a personal loan. Still, check the loan terms. Also compare it with a gold loan, which may cost less.
How fast is an online personal loan?
Speed depends on the lender and your papers. Complete KYC and a good credit score usually help. Don't rely on a promise of same-day money.
Is it wise to borrow for festival shopping?
Only if the EMI fits your budget with room to spare. Interest on a short loan still adds up. If you can wait or save, that's cheaper.
BankCreds analysis
This story is more useful as a checklist than as news. A personal loan for a festival purchase is rarely the cheapest way to buy gold.
The rupee view
Take a household that buys ₹1,00,000 of gold with a 12-month loan at 14%. It pays about ₹10,100 in interest and fees. Gold would need to rise about 10% in a year just to cover that. Gold prices can fall, too. A gold loan against gold you already hold could cost less.
Don't over-read the festive timing. Dhanteras doesn't make gold a safer buy, and lenders don't cut rates for it. If your budget is tight, buying a smaller amount with your own cash is the safer choice. If you do borrow, check prepayment charges before you plan to repay early.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Mid-Day — originating report https://www.mid-day.com/buzz/article/planning-a-dhanteras-purchase-how-to-apply-for-a-personal-loan-online-11445
- RBI list of registered NBFCs — check that a non-bank lender is registered https://www.rbi.org.in/Scripts/BS_NBFCList.aspx
- RBI Sachet — check for unauthorised lending entities https://sachet.rbi.org.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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