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Travelling is a bug that has bitten many Indians. But one thing that keeps many passionate travellers from checking destinations off their lists is the financial aspect of travel. There is no denying the fact that you require a significant amount of funds to travel comfortably. And one way to get your hands on some funds is to opt for a travel personal loan. Here’s why we feel a personal loan is an excellent option to fund your travel:
1) Higher Loan Limit
A personal loan can offer you a maximum loan amount of Rs. 25 lakhs. Whether you want to go on a multi-destination world tour or simply chill on a serene beach, don’t let finances worry you, as a personal loan can cover your travel dreams.
2) Interest Payment on Usable Amount
If you get a personal loan with a credit limit of Rs. 10 Lakh, but you utilize only Rs 5 Lakh, you only need to pay interest for the 5 Lakh and not the entire amount. This significantly brings down your interest outgo and can make your loan affordable.
3) Withdraw Easily
If you do not want the entire loan amount paid to you in one shot, you can always withdraw only the required amount. Holiday personal loans allow you to withdraw as much as you need from your loan account.
4) Interest-only EMIs
For personal loans for travel, lenders allow you to pay your principal amount as your tenure nears completion. Till that time, you only need to keep paying the interest amount as your EMIs. This makes repayment easier as you then have ample time to plan and pay the principal amount.
5) Make a Switch
You can also switch your personal loan to any other type of loan at any time without any hassles. If you wish to switch your holiday loan to a term loan because you think it is more suited to your needs, you can do so easily.
6) Instant Loan Option
Travel plans sometimes can come up spontaneously. And the instant loan option can help your spontaneity and get you the funds to travel in quick time, sometimes in as little as 24 hours.
7) Better Alternative To Credit Cards
A personal loan for travel is a much better option than a credit card. The interest rate of a personal loan would be lesser than that of a credit card. Also, credit card usage is considered as a short term loan , whereas you can have a longer tenure on a personal loan.
8) Minimum Documentation
A personal loan is very quick in disbursal and has much lesser paperwork and processing time. This makes it a very convenient loan to get.
9) Unsecured Loan with no Guarantor
A personal loan for travel would be an unsecured loan, which means the loan does not require any security or collateral. Your loan application will be considered based on your income and credit score.
10) Online Loan Application
Such is the ease of getting a personal loan that you can do most of the loan application process online. Simply log in to the lender’s website and apply for a holiday loan directly from there.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
FAQS - FREQUENTLY ASKED QUESTIONS
Can I travel if I have a Personal Loan ?
Personal Loans do not have any restrictions on their end use. You can use the proceeds from a Personal Loan for travel, education, or any other purpose.
Is it a good idea to take a loan to travel ?
Yes, it is a good idea to take a loan to travel because,
A Personal Loan is a good way to get access to finance quickly.
It can be repaid in easy EMIs.
It does not require any collateral.
It comes with a flexible tenure to repay the loan.
What are the restrictions on Personal Loans ?
Lenders establish certain eligibility criteria to get approval for your Personal Loan application. Personal Loans, which are flexible and easily available, can be used for any unplanned expense. The only restriction is that it cannot be used for illegal activities.
Should I take a Personal Loan for vacation ?
A Personal Loan for vacation should be considered based on certain factors, such as
Your income - It should be enough to pay the EMIs regularly.
Your repayment capacity - you should take a loan according to your repayment capacity, meaning your EMI should not exceed 40% of your income.
Your credit score - It reflects your credit history. A good score will help you get a loan at low-interest rates.
Your current liabilities - consider your current financial obligations before applying for a loan. The loan EMI should not put an extra burden on your finances.
Can you get a loan from the bank for travel ?
Yes, you can get a loan from the bank to travel. Many people apply for a Personal Loan for overseas travel. The bank will assess your loan application to check if you fulfil the eligibility criteria and will approve your loan only if you meet all the eligibility conditions.
