BusinessWire India

Gurugram (Haryana) [India], October 26: Festive sale shoppers who are short on cash until payday have a new option this October. Stashfin has opened a personal loan of up to Rs 5 lakh to eligible borrowers, with 0% interest for up to 30 days on whatever amount they actually use from it. Pay back the amount used within the interest-free period of up to 30 days and the interest on it comes to zero. Foreclosure charges are NIL.

The offer is aimed at a familiar problem. The year's biggest online discounts run for a few days in October, usually in the middle of the month, while salaries arrive at the end of it. Shoppers who wait for the money can miss the price. Shoppers who put the purchase on a credit card and cannot clear it in full may carry the balance forward at the card's interest rate.

Sale Calendars Rarely Match Salary Dates

The sale dates are rarely a secret; platforms put them out weeks ahead. The deals are the hard part. A phone marked down by a few thousand rupees on day one may be back at full price by day three. The extra bank card discount might only work on two particular days.

Someone paid on the last working day of the month can be staring at a gap of two, even three weeks. Freelancers and small business owners can have it worse in October, because some clients hold payments until the festivals are over. So people start searching. An instant loan app here, a short term loan there, and quite often the first offer that loads is the one they sign up for, cost unchecked.

How the Offer Works for Sale-Season Purchases

Stashfin approves a credit limit of up to Rs 5 lakh, depending on eligibility. The borrower draws only what the purchase needs, and the rest of the limit stays unused, at no interest.

A typical case looks like this. A shopper finds a planned purchase, say a refrigerator, at a lower price during the sale, but the next salary credit is still some way off. The shopper draws only the amount needed on the Stashfin app, places the order, and repays it in full by the billing date, within the interest-free period. No interest is charged on the amount used. The platform fee and transaction fee in the charges table still apply.

If the amount is still outstanding after the interest-free period, interest of 11.99% to 36% applies, as per the loan terms. Borrowers can still close the loan early at any point, with no foreclosure fee.

Key Features of the Stashfin Personal Loan

*         Revolving credit limit of up to Rs 5 lakh

*         0% interest for up to 30 days on the amount used

*         Interest only on the amount drawn, not on the full limit

*         Repayment tenure from 0 to 42 months

*         No collateral for the loan amount

*         The application is 100% digital

*         NIL foreclosure charges

Common Ways to Pay for Sale Purchases

Shoppers usually choose between a few payment routes. Each has costs that are worth checking before checkout.

Eligibility Criteria and Documents Required

Meeting the criteria does not guarantee approval. Stashfin's basic requirements are:

*         Age and Residency: Indian citizen, aged 18 to 59 years

*         Employment: Salaried and self-employed individuals

*         Credit Score: 730 or above (exceptions may apply)

Documents to keep ready:

*         Identity proof: PAN card and Aadhaar card

*         Income proof: Recent bank statements; salary slips or ITR may be requested in some cases

Steps to Apply on the Stashfin App

1)      Download the Stashfin app and register with a mobile number.

2)      Fill in the application and complete digital KYC with PAN, Aadhaar and a live selfie.

3)      Stashfin assesses the application and credit profile against its eligibility criteria.

4)      Once approved, the money is credited directly to the borrower's bank account.

Completing KYC a few days before the sale opens means the account is already set up when the deal goes live.

Interest Rates and Charges

Representative Loan Example

For a Stashfin personal loan of Rs 40,000 repaid over 36 months, the costs work out as follows:

What Shoppers Should Check Before Borrowing for a Sale

Personal loans are easy to take during a sale and easy to regret later. A few checks keep the purchase worth it:

*         The EMI, in case plans change. Salaries get delayed. Bonuses get pushed to next month. Once the amount runs past 30 days, interest starts, and that instalment has to sit alongside rent and any other EMIs.

*         The lender behind the loan app. Any personal loan app should show the name of its RBI-registered lending partner before PAN or Aadhaar details go in. Stashfin, for instance, lends through Akara Capital Advisors Private Limited.

*         Whether it was on the list before the sale. A sale price is a good reason to buy something already planned. It is a weak reason to buy something that was not.

Festive sales reward shoppers who can pay on the day, and salary cycles do not always allow it. For a purchase that was planned anyway, the arithmetic is fairly simple. Repay during the interest-free period of up to 30 days, make sure the saving beats the fees, and the credit line costs nothing in interest.

Eligible borrowers can access the offer on the Stashfin app now: a limit of up to Rs 5 lakh, 0% interest for up to 30 days on the amount used, no foreclosure charge and a paperless application. Eligibility, charges and repayment terms are worth reading in full before the loan agreement is signed.

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