Personal Loan for Travel and Holidays

A personal loan is a kind of unsecured loan and is offered to meet the current financial needs. One does not need to provide any collateral/security for the same. It gives flexibility to the borrower to use it according to convenience and need. It is also a solution for instant cash in case you need to plan a holiday if there is a wedding at home, a medical emergency, home renovation or anything else.

How to Apply For a Personal Loan?

For a salaried individual, it is easy to get a personal loan. The minimum salary required and the maximum personal loan offered differs from individual to individual. It mainly depends on the Creditworthiness of the person and his relation to the financial institution or bank. These days with the advent of technology it is easy to apply for a personal loan by just logging in to your system.

Personal Loan for Travel and Holidays:

“Of all the books in the world, the best pages are found between the pages of the Passport.” The best memories are made while you travel, to Travel to Live. While travelling is important and should form a part of your annual routine, it also needs money.  It is easy to apply for a Travel and Holiday loan from a reputed bank or financial institution these days.  The approvals are quick, the disbursals are fast, and the process can be done online. 

 Travel Loan Benefits and Criteria:

1. You get a lumpsum amount in the form of personal loan.

2. This amount has to be refunded within a span of 12-18 months depending on the terms and conditions with the bank.

3. An individual does not exhaust all his savings at once and gets a chance to pay back slowly from his income.

4.The process is easy, and the disbursal is fast.

5. Any Salaried individual in the age of 25-58 can apply for the loan.

6. The minimum salary bracket is mentioned online

7. Documents include- Salary slip of last 2-3 months, Bank statement with salary reflecting for last 3 months, Employee ID card, Identity proof (Passport, Aadhaar, Driving Licence, PAN card) and Address Proof (Passport, Driving Licence, Ration Card, Latest mobile bill, or a letter from the employer with signature)

8. A lot of banks have their eligibility calculator on their websites, before applying for the loan one can check the eligibility.

Personal Loan for Travel and Risks associated:

Even a planned holiday can sometimes go over budget. Remember you have a high EMI to repay. People have the tendency to apply for a personal loan and then use their credit card to make purchases, not realizing that both of these are borrowed money that they need to repay. A large amount can also affect the Creditworthiness of an individual if not repaid on time.  If you think you are responsible enough and have a healthy repayment habit, only then apply for a personal loan for travel and Holiday. People who default and have missed payments can spoil the credit worthiness, and it often takes the time to build you credit worthiness again.

Travel Loans VS Credit Cards- The Comparison

Travel Loans Pros: 

The fixed interest rate makes it easy for you to budget while you are travelling across the globe.

You can borrow more than a credit card, the Credit card has a limit, while you can apply for a higher travel loan if required.

Travel Loans Cons:

• You are charged the interest from the day you take the loan
  
• Less flexibility as you take a lump sum amount
  

Credit Card Pros:

• Flexibility as you pay as you go
  
• Suitable for smaller amounts
  
• You get reward points which can be redeemed later
  
• You sometimes get free perks like travel insurance and so on.
  

Credit Card Cons:

• You could be tempted to spend more than you require
  
• High rates if you make an ATM withdrawal
  
• Some cards also come with a very high foreign exchange fee.
  

Final Word:

If you are looking for a consistent interest rate and do not want to overspend, then go for a travel loan. Using credit cards in India can be a good option since you get a month’s time to repay the amount. Using the same overseas would mean high withdrawal fees and high currency conversion rates.It is always advisable to compare quotations of more than one lender to get the lowest interest rate.