Travelling places helps one step out of their comfort zone and beautifully explore places without having to worry about the daily chaotic life. Though travelling does give one a refreshing mental and physical experience, however, not everyone is lucky to travel places without having to worry about the finances associated with it. With the easy availability of travel loans, it has now become possible for people to travel domestic as well as international without worrying about finances. If you are planning to travel to your favourite destination and are looking to avail a holiday loan, then below are few facts you need to be aware of.
What is a travel loan?
A travel loan is nothing but a personal loan that can be utilized for travelling. This type of loan can be taken for catering to various travel expenses including booking tickets, accommodation, transport service, shopping, food expenses and others. The travel loan amount is given based on eligibility criteria i.e. your credit score, age, income and other factors.
Facts to know about travel loan
Covers various expenses:Â If you think that a travel loan can only be used to cover various travel expenses, then you are highly mistaken. You can utilize the loan amount for accommodation, food, sightseeing, shopping, medical or any purpose. There are no such restrictions on the usage of the loan amount as it can be used for domestic as well as international travel purpose.
Instant disbursal: Whether you have a planned travel plan or make one instantly, the loan amount is transferred to your bank account quickly, thus providing you immediate access to funds. Lenders in India now offer instant disbursal that make it easy for you to address travel emergencies and plan in the nick of time.
Flexible tenure: The travel loan amount can be availed for a tenure of 12 months-60 months, thus making it easy for you to repay the EMIs on time. The longer the tenure, lower the EMI, whereas the shorter the tenure, the higher the EMI. On the other hand, long tenure attracts heavy interest, whereas short tenure attracts low interest. Depending on your monthly income, you can choose flexible EMI tenure that enables you to repay the EMIs without stressing your monthly expenses.
You can increase your credit score:Â You can increase your credit score by paying the travel loan EMIs on time. Timely repayment of EMIs is one of the important criteria that helps you improve your score, thereby helping you avail more loans in the future. Low credit score can lead to rejection of your loan or approval of the loan at a high-interest rate.
Unsecured loan:Â To avail the travel loan amount, you would not be asked to keep any guarantor or security. Instead, you can avail the loan based on your credit score, income, employment status and other factors.
Minimum documentation:Â Getting a travel loan does not require you to undertake a lengthy documentation process. The loan is sanctioned based on submission of minimal documents including identity proof, address proof and income documents. Additionally, with lenders offering online application services, one can upload documents online that further makes it possible for one to avail the loan amount instantly.
Online application: Travel loan application can be processed online without having to visit the lender’s office. This ensures that the application process is convenient and less time-consuming. Also, online applications provide you with instant updates that make it easy for you to plan your travel.
Simple eligibility criteria:Â To travel places, you need to meet simple eligibility criteria to be able to avail a travel loan. You should be aged minimum of 21 years and should be employed with a private, public or government company drawing a salary of at least Rs. 15,000 per month.
How to apply for a travel loan?
Getting a travel loan in India is simple and does not require you to go through a difficult process. All you need to do is:
- Download an instant personal app from Google playstore or visit the lender’s website
- Fill and submit the application form online. You will be asked to submit your personal and professional details.
- Submit documents online i.e. one address proof, identity proof and salary slip
- Verify your bank statement
- On successful loan approval, the loan will be disbursed within 48 months
Conclusion
Before applying for a travel loan, it is always a good idea to estimate all your costs to ensure that you don’t face any financial difficulties when you are away from family and friends. Avail a loan amount 20% higher than the planned cost of your trip and always research on the best travel loan interest rates online to make the right pick. Also, borrow the amount you can repay as having a high income to debt ratio can make it difficult for you to pay the EMIs that will further dent your score. To know more, click here.