Want to go on a splendid vacation spot with your friends but falling short of budget? Let not your financial crises hold you back from visiting your dream destination! Travel loans are here at your rescue to help you fulfill your bucket list.
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What is a Travel Loan?
A travel loan or a holiday loan is a type of unsecured personal loan disbursed by lenders for traveling purposes. While traveling gives a break from your day-to-day mundane and boring schedules, it is equally important to check your finances, and if you are facing monetary deficits, travel loans will support you.
Who to Approach?
Banks or other financial institutions provide travel loans for the purpose of financing for your traveling expenses. Many of the lenders do offer travel loans at low rates of interest, minimal or no processing fees and hassle-free payback options within comfortable tenure periods. It doesn’t matter whether you are going to trek in the Himalayas or travel to the Great Pyramids of Egypt. You can use the travel loan for visiting your dream holiday spot.
3 Things You Should Be Aware Of Before Applying For Travel Loan
Before availing a travel loan, do consider the following three things to keep things clear and transparent.
- Check your financial status. Do you already have a number of outstanding loans? Will you be able to repay the loan amount with your current salary? Do you have a good CIBIL score? If not, then don’t go for a travel loan as financial companies do keep a track of these factors to check whether you will be able to repay the loan. Also, find out the rates of interest offered by your lender and choose your repayment tenure wisely. Normally, lenders do offer interest rates between 11% – 21% for loans up to Rs. 25,00,000, which can be repaid within a period of 12 – 72 months. The interest amounts and term periods depend upon your current salary, your credit score, your repayment histories or existing loan amounts, your income stability, your profession and your company category, your age and years of work experience. You can also get a rough estimate of your repayment amount with the help of an EMI calculator
- Think about how much money you are going to need. Ask for only the amount you need, and never go for any extra bucks. The higher the loan amount, the greater will be the rates of interest, which would eventually mean higher repayment amounts. If the amount is very small, it would be better if you go for other options than availing a travel loan, such as using your credit card perks which would also offer you some extra flexibility
- Learn about the eligibility criteria. How would you know whether you are eligible for availing of a travel loan? Go through the below-mentioned criteria and check whether you are meeting them.
- The applicant must belong to the age group of 23-58 years
- The applicant must be a salaried or a self-employed person, having a minimum salary of Rs. 20,000
- The applicant should be experienced for a minimum of 2 years in his or her current occupation
- The applicant should be residing for a minimum of 1 year in his or her current home address
- You are an active taxpayer registered with the Government of India
- You have the correct documents ready, such as address proof, identity proof, source of income, payslip of last 3 months, bank statements, travel plans, name or other identity proof of guarantor or other collaterals (if required), and similar documents
Apart from the above 3 things that you should be aware of before applying for a travel loan, you should also get your travel insured to safeguard yourself from any unavoidable circumstances. This could be unfortunate instances such as luggage thefts or accidents. Have an adventurous trip and let travel loan take care of your finances!