Personal Loan for Travel (Photo Credit: FILE PHOTO)
New Delhi:
Whether it is a cross-country family vacation or a trip overseas, there are a number of expenses you need to cover. From accommodation and dining to activities and more, you need to ensure sufficient funds to enjoy your vacation without any stress.
Thankfully, a travel loan can help you navigate through these expenses and ease your worries. Taking a personal loan for travel gives you the flexibility to use funds without any restrictions. With many top banks and NBFCs offering attractive offers, you can get maximum credit per your eligibility without much hassle. In addition, getting a travel loan has many benefits over dipping into your savings. Read on to know these benefits that are the reason why taking a travel loan can be a wise option for your next vacation.
Use the Funding to Pay for Costs
A travel loan is flexible and hassle-free with no end-use restrictions. This means you can use your loan amount for any expense related to your vacation. You can use it to book accommodation, flight tickets, transportation, dining, shopping activities and so on.
Moreover, you can use the funds during an emergency to handle any unexpected change of plans or medical emergency.
Get Easy Access to Funds
The application and disbursement processes of a personal loan for travel are more reasons why a travel loan is a good option to fund your vacation. You can easily apply online with minimum documents and get the required funding.
Moreover, many lenders offer personal loans for up to ₹50 Lakhs. However, the amount offered to you depends on your eligibility and the lender’s policy.
Enjoy Lower Interest Rates
Be it a travel loan or any other type of loan, having a lower interest rate reduces your total payable amount. You can choose the most affordable interest rate as per your finances. Lenders offer competitive interest rates, which depend on many factors. These include your applied loan amount, tenure, existing loans etc.
Moreover, as compared to other unsecured forms of credit, such as a credit card, travel loans have a lower rate of interest. Therefore, taking a personal loan for travel is not only convenient but also easier on your pocket.
Choose an Affordable Repayment Option
Adding to the list of benefits, you can customise your travel loan repayment by choosing a suitable tenure option. Personal loan tenure can start from a minimum of 6 months and can go up to a maximum of 96 months. You can negotiate the term of your personal loan with your lenders to get a longer tenure for your personal loan for travel. However, remember that the repayment terms are at the lender’s discretion.
Generally, the repayment terms are favourable if you are a creditworthy applicant with a low risk of default. While finalising the terms, you should ensure that the repayment EMI fits into your budget.
A longer tenure will give you a lower EMI, but you will have to pay higher interest over the tenure. Alternatively, a short tenure may cost you a higher EMI, but the interest payable will be lower on your principal amount.
Therefore, it is important to understand the balance between loan tenure and the EMIs before applying for a loan. This is why many lenders offer a personal loan EMI calculator tool on their websites, enabling you to make quick and informed decisions.
Apply Easily by Meeting Simple Eligibility Criteria
Generally, any Indian citizen between the age of 21 and 80 years can apply for a travel loan. In addition to age, lenders also have specific criteria for your CIBIL score and monthly income.
If you meet the required criteria, you can quickly apply for the loan and enjoy quicker access to funds. Often lenders also provide pre-approved personal loan offers based on your credit profile. You can use a personal loan eligibility calculator to check if you meet the required terms.
A pre-approved offer can further quicken your travel loan application process as the lender has checked your details. Therefore, it is important that you check the eligibility and documentation requirements before you go forward with your application.
Other Features of Travel Loans
Here are some other features of a travel loan that make it a great option:
No collateral is to be pledged since it is an unsecured loan, allowing you to apply with your credit score.
Submit basic documents, such as ID proof, income proof and address proof.
Apply from the comfort of your home on the lender's website or mobile app Pay minimal processing fee.
In conclusion, you can make your next vacation even more relaxing by easing your financial worries through a travel loan. However, remember to use a personal loan eligibility calculator to choose the best option. Also, check required documents, fees, and charges on lenders' websites to compare and choose the right option.
