Diwali 2025: Do not abuse your personal loan on this festive expenses

As Diwali approaches, many households turn to personal loans to finance their celebrations. Loans can help offer short -term expenses and reduce financial stress. But here the catch-if it is used carelessly, it can also lead to long-term debt and repayment pressure. Experts warn that personal loans should never be considered a source of easy money. It is useful to bridge immediate financial gaps, but impulsive or high-risk expenses can turn it into a burden. Vikkas Goyal, founder, Rupee112, says: “During Diwali, personal loans should be used wisely. Avoid using it for speculative investments, high-risk purchases, or covering ordinary expenses. Abuse of credit can lead to repayment of stress and financial stress. Here are five things you should never do with your personal loan this festive season: 1. Do not use it for speculative investments once the loan amount hits your account, plan your refunds first, not your purchases. Avoid using borrowed money for lotteries, stock market wets, crypto ambiguity or gambling with the hope of “doubling” your funds. Personal loans have interest obligations, and speculative losses allow you to pay the repayment of EMIs long after your venture fails. 2. Do not invest in unverified businesses, a personal loan is borrowed money, not venture capital. Avoid using it to finance any unverified business idea or ‘too good to be true’ investment scheme. The excitement of Diwali may judge, but to fall untested opportunities can result in financial losses and unnecessary obligations. 3.. Do not cover old debt or lifestyle spending without a plan that uses a personal loan to clear credit card fees, splurges or old EMIs without a structured repayment plan, only shifts debt; It doesn’t solve it. If you have been juggling several loans, consult a certified financial advisor before borrowing more. Debt consolidation only works when it is backed by discipline and clarity. 4. Do not splash on the lavish holiday season outings, sounds tempting, but the travel costs have sent off during Diwali. Using your personal loan for a luxury trip can derail your finances for months. Borrow only for essential needs, not emotionally driven expenses or FOMO-driven plans. The goal is to celebrate without regret when the accounts arrive. 5. Do not spend on excessive devices or luxury items, a high device, cars or watches may seem irresistible, but these are depreciation assets. Avoid using a personal loan to quickly buy things that lose quickly while your EMIs continue for years. If you would like to grow your wealth, consider the funds (after consulting an expert) in mutual funds, gold or silver, rather than luxury products that drain your cash flow. The hidden risks of personal loans before applying, remember that personal loans exist with costs and risks, including high interest rates, processing fees, fines for missed EMIs and possible legal issues. Irresponsible loans can also harm your credit rating, making future loans more expensive or more difficult to get. Keep your focus on meaningful and moderate expenses, such as simple home improvements, thoughtful gifts or essential purchases to enjoy a financially stress -free Diwali. Just borrow what you can comfortably repay, and make sure your festive joy does not become the financial tension after the festival. Visit here for all personal finance updates. Disclaimer: Mint has a partnership with Fintech businesses to offer credit; You must share your information if you apply. These bonds do not affect our editorial content. This article aims to educate readers and raise awareness about the essential needs of credit, including loans, credit cards and credit values. Mint does not promote or encourage credit because it comes with risks such as high interest rates and hidden costs. We advise investors to discuss with certified experts before taking credit.