A travel loan is nothing but a personal loan which can be used to sponsor one’s vacation. So if your bucket list has many destinations to tick off, you can consider taking a personal loan to ensure you visit as many places as you want.
A travel loan lets you take care of all the expenses involved in your trip. This makes your travel a relaxing vacation in the truest sense of the word. If not a personal loan for travel, then you might think of using your credit card to incur the cost. But once you are back from the trip, the reality will hit you in the form of credit due for the month which you will have to pay at one go with a skyrocketing rate of interest.
A personal loan saves you from this ordeal. It gives you the flexibility to take a loan for an amount you need and then repay it as per your suitability. It is an unsecured loan hence there is no pressure to pledge any collateral. The rate of interest that you get for the travel loan, depends on your monthly income and also your debt to income ratio. But how can you apply for a travel loan in India?
The simplest way to apply for a travel loan in India is to do it online. You need to follow the below steps:
- Choose a bank or an NBFC which provides a personal loan. You can use this to pay for your travels.
- Long in on the lender’s website or download their mobile application and log in through that.
- Once you log in you need to fill basic information such as:
- Identity details
- Employment details
- Loan amount required
- Tenure chosen
- Once these details are filled, you need to upload the documents for verification.
- After verification, you can get an approval on the spot.
- As soon as you get approval the money is processed and disbursed into your account immediately or at least on the same day, depending on the lender’s policies.
Advantages of Taking a Personal Loan for Travel
- You can travel quickly if there is an impromptu plan, as personal loan approval and disbursal happens quickly.
- No need to pledge collateral.
- Avail an instant personal for travel with a hassle-free application and minimal documentation.
- A cheaper option than a credit card.
- You get to choose the tenure as per your repayment ability.
- You can travel to any destination. There is no restriction as such.
Before you apply for a personal loan for your travel needs, check the eligibility criteria set by the lender. Fix a budget first and then use the EMI calculator for a personal loan to gauge how much you will have to pay monthly once you are back. Some lenders also give you the option to start your tenure once you are back from the vacation. This way you can be prepared to manage your finances better.