What is your dream vacation destination New York, Paris or Australia? When you work day and night to make a living you definitely deserve to enjoy to spend some quality time with your family and friends. But to fulfil these vacation plans you need finances- from travel tickets to hotels to sightseeing. Even if it’s not a faraway destination then also you need a good amount of money and some times money does not come handy. Here is when the personal loan comes into a play. A Personal Loan can be helpful to fulfil your dream vacation and interestingly the loan is disbursed mostly in 48 hours or even on the same day.
Travel Loan Features
- In India, lenders provide travel loans for as low as Rs 10,000
- The processing fee is charged as terms and conditions of the bank
- Loan amount disbursed as per your requirements, mostly within 24-48 hours
- The loan repayment tenure is for the shorter duration which ranges between 12-60 months
Benefits of Travel Loan
- Fast Processing
One of the main reasons why a personal loan is taken for travel purpose is due to its faster processing. The lender disburses the amount within 24-48 hours. If you need money to make reservations then you should opt for this.
- Low EMIs
A personal loan taken for travel purpose are generally for short term and is available at a lower interest rate as well, which automatically lower down the EMI. Let’s assume you have taken a loan for Rs 4,00,000 at an interest rate of 13% for 2 years, you will have to pay an EMI of Rs 19,000. You can calculate the EMI with the help of a Personal Loan EMI Calculator.
- No Security Required
As personal loans are unsecured loans so in that case no collateral is required. You can apply for the loan purely on your eligibility criteria and without keeping any collateral against it.
- Boosts your Credit Score
Yes, a personal loan taken for travel purpose will boost your credit score. The travel loan is taken for a smaller amount and shorter duration, which does not turn out to be a hole in your pocket and you will be able to make EMI payments on time. No default in EMI boosts your credit score.
How to estimate your Travel Loan amount?
Before you ask or opt the lender for a travel loan, you must first credit budget which will be helpful while determining how much loan you should take. Research about the destination, it will give you a fair idea of how much flight tickets cost, hotels, sightseeing, food will cost. If you read articles on the internet it will also give you an idea where should you go and what should you buy.
According to your research now make a budget, how much will be spent on per day basis. You can go to the travel agent If you want to get an idea of the budget you need. Here is a pro-tip, always add 20-30% extra than your estimated budget. Now, the budget is done to check your savings, how much you can raise on your own. Calculate all that and then decide how much loan amount due you require.
Who is eligible for a personal loan?
- A person should be a citizen of the Republic of India
- You should be in the age range of 21 -60 years (age limit can be different from different lenders)
- The person applying for a loan should a salaried employee
Documents required for Personal Loan for Travel
Here is the list of required documents to apply for a travel loan:-
- Identity proof – Aadhaar card, driving license or passport.
- Your PAN card
- Last 3 months Bank account statement
Bank also look at the following things:-
- The company you work for: whether private limited or public limited
- Nature of job/work
- Your residual working span
- Your average monthly bank balance
- Your investments
How to Apply for a Travel Loan?
Applying for a travel loan is hassle-free, you just need to take the following steps:-
- Fill in the online loan form with your personal, business and financial details.
- Select the loan amount required, also select the tenure for the loan
- Upload the documents for verification and validation.
- When the application gets endorsed, the sum will get dispensed in your enrolled financial balance inside 24 hours.