The year 2020 has been marred by the Covid-19 pandemic that wreaked havoc around the world. But as the year is coming to an end, and the pandemic situation has improved, people wanted to relax and forget the horrible wasted year. The travel destinations are bursting with travelers again, so what are you waiting for?
It is a wonderful idea to go for a vacation during Christmas break and start the upcoming year with new hope. If you are perturbed about the travel cost, don’t be. Travel loan from financial institutions is an easy remedy to bear travel expenses. The personal loan for travel is so crafted that it is not heavy on the pocket and can be repaid with ease.
What is a travel loan?
A travel loan is a type of personal loan that includes all kinds of travel expenses incurred during your visit. The travel loan is unsecured, that is, without putting any collateral as security. The loan can be used for:
- Ticket bookings
- Food
- Gifts
- Accommodation
- Shopping
- Auto-rentals
- Sightseeing, and more
What are the benefits of taking a travel loan?
A personal loan for travel is hugely beneficial to applicants with limited resources at their disposal. Some of the benefits are;
v Savings are intact
The travel loan helps you to keep your hard-earned money intact. You can go for a vacation without touching your savings.
v Flexible repayment option
Using the EMI calculator, an applicant can select the EMI amount and the tenure of repayment. A borrower can decide the right EMI option based on his/her financial capability.
v Instant approval
v Once you have decided to go on holiday and the destination, an applicant can apply for a personal loan to travel. The process is super quick, and the money is sanctioned to eligible candidates without delay — the entire procedure being digital cuts down on time.
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What are the things to consider before applying for a travel loan?
There are certain things that an applicant should keep in mind before applying for a travel loan; these are:
Ø Try to make a correct estimate of your travel budget. Include all the costs that you can infer while travelling, such as tickets, accommodation, food and beverages, shopping, etc. Once you have a rough estimate, make sure you have at least 20% more money for travel plans.
Ø Personal loans for travel are unsecured and carry higher interest rates in comparison to the secured loan. Do proper research and find out all charges apart from interest rates levied by the lender. Take an informed decision in the end.
Ø The money to be paid back in instalments includes the principal amount and the interest charged. Always select the EMI plan that is affordable without any burden on your financial health; failure to pay on time can have serious consequences.
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Eligibility criteria to apply for a travel loan
ü The minimum age of the applicant should be 21 years.
ü He/she must be an Indian resident.
ü There is a minimum income that an applicant must earn; it varies between lenders (usually Rs.15000)
ü The applicant should have a good credit score. Most lenders prefer a credit score above 700.
How to apply for a travel loan?
By following three steps, an applicant can avail of a personal loan.
Step 1: An applicant should fill in the travel loan application form with all relevant details.
Step 2: Submit the required documents either physically or upload them. Select the amount to borrow and EMI to repay the loan amount.
Step 3: The papers are verified, and the loan amount is transferred to the applicant’s account in no time.
Christmas vacation is that time of the year when you want to forget about your failures and look towards the future with hope and merriment. It is no secret that people plan their visit to exotic locations within and outside India during this time. So what’s holding you to explore the funny side of yourself and life? Travel loans can take care of all the impending expenses while you can relax and enjoy your time.
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