The What Why and How of Travel Loans
An exotic beach vacation in Seychelles, adrenaline-pumping adventures in New Zealand, cultural paradise in Tibet. All these vacations are no more a dream. If budget constraints are stopping you from planning your vacation with friends and family, then availing a travel loan is an option you should consider. It would not cross your mind that you can take a personal loan for your vacation. Availing a travel loan is what many people are choosing to do these days.
Here’s all that you need to know about travel loans.
What is a travel loan?
A travel loan is a form of an unsecured personal loan. You can take this personal loan to incur the expenses of your vacation. A holiday loan can help you finance your trip. You can use it for airfares, accommodation, food, transportation, travel insurance etc.
How can you avail a travel loan?
You can avail a travel loan form any bank or a Non-Banking Financing Company. These lenders provide you with a personal loan for travel. The good news is that banks and NBFCs now provide travel loans online. All you need to do is visit their website or download the application on your phone and avail a travel loan in minutes.
How does a travel loan work?
A travel loan is a quick solution to your budget problems for a trip. It is provided on the basis on your credit score. You need to have a good credit score to get a chance for a swift loan approval. The first step is to decide a budget. Once you know the total amount you need to spend on the trip, you can avail a travel loan for the same. Fix the amount of your monthly EMIs and also the loan tenure based on your finances. Not all lender will give you travel insurance included in the loan. You can increase the amount of your travel and incur the expenses of your travel insurance.
How to payback a travel loan?
To payback your travel loan you need to pay the bank an Equated Monthly Installment, also known as an EMI. These EMIs are paid back on the principal amount in addition with the interest rate. You can easily calculate your EMIs using a personal loan EMI calculator. You need to select your loan amount, tenure and interest rate. The calculator gives you an approximate of your EMI. If there is an influx or some extra money then you have the option of pre-paying the loan. Lenders charge a pre-payment fee.
Benefits of availing a travel loan
Taking a personal loan for the purpose of travel is a smart decision in a lot of ways. Here’s how travel loan is beneficial.
- Gone are the days when you had to save a lot of money to travel to your favorite destination. Avail a travel loan and forget all your travel woes.
- Travel loans have a fixed interest rate. This helps you plan and manage your finances well.
- For an online travel loan, the money is disbursed in a very little time. The process is hassle-free with minimal documentation.
- The interest rates for personal loans start at 10.99%.
- A digital holiday loan gives you the access to your loan anytime anywhere, even while you are travelling.
- You do not need to keep any mortgage or collateral.
- You do not have to mention the reason for travel.
- There is no restriction for any destination. You can avail the loan for both, international and domestic travel.