Family vacations can come with significant expenses and involve investing a considerable amount of savings. To address this situation, financial institutions are now offering a personal loan for travel so that individuals do not have to miss out on their dream vacation for the lack of funds.
The growth of the Indian economy has also provided impetus to the rise in the number of loans for travel. The average Indian is now indulging in occasional travel itineraries more than they used to before.
Personal loans for holidays do not come with end usage restrictions. Borrowers can use the funds to spend it on any costs, including flight tickets, accommodation, food and even sightseeing. Borrowers can use such credits to fund any of their domestic or international trips.
Personal loan eligibility criteria for travel
Borrowers must meet the following eligibility criteria to avail a credit and fund the expenses of their family holiday.
- Applicant must be a resident of India.
- Applicant must be aged between 23 and 57 years.
- Applicant must be a salaried employee in an MNC, private sector or public sector.
Benefits of availing loans for travel
Travel loans come with a plethora of features customised to help a borrower to manage the finances better on their holidays. Some of the benefits it offers are –
High loan amount
Lenders offer amounts of up to Rs.25 lakh in case of personal loans for holidays. However, borrowers should avoid availing a loan amount beyond their requirements to avoid significantly increasing the financial burden. A higher loan not only increases the total EMI but also increases the total cost of loan payable throughout the tenor.
Extensive range of tenor options
Personal loan for travel comes with an extensive range of tenor so that borrowers can repay the debt conveniently. Lenders usually offer tenors ranging from 1 year to 5 years for such credits. A longer loan tenor may reduce the immediate EMI amount, but it will increase the total cost associated with the loan significantly. On the other hand, a shorter tenor reduces the total cost, along with increasing the EMI amount. Borrowers should develop a proper repayment strategy and find out the right personal loan tenor that works for them.
Flexi loan facility
It is challenging to determine the total expenses that may be required to complete the trip beforehand. Various costs related to shopping, transport, food may vary from the initial estimate, especially in a foreign country. Also, individuals may face any emergency during the trip that may require immediate funds.
Bajaj Finserv introduced the flexi loan facility on their personal loan for travel to address such immediate requirements. It entitles a borrower to avail the disbursed amount in parts whenever they need. The interest is charged only on the amount utilised or withdrawn by the borrower.
Also, they can opt for interest-only EMIs that will enable them to pay just the interest amount throughout the tenor and pay the principal at the end. Flexi loans can significantly reduce the financial burden on an individual.
They also provide pre-approved offers on such credits to make the application process more straightforward and faster. Pre-approved offers are valid on several financial products including secured advances like home loans and unsecured credits like personal loans and business loans. Check your pre-approved offer by sharing a few essential details like your name and phone number.
Fast loan approval and disbursal
Financial institutions have simplified the loan application process so that prospective borrowers can avail a personal loan for travel at a short notice. Note that some lenders approve loan applications within 5 minutes of submission and disburse the amount within 24 hours after document verification.
Required documents to avail such credits are –
- KYC documents such as voter ID card, PAN card, Aadhaar card, and driving license
- Employee ID
- Salary slips for the previous 2 months
- Bank statement of the salary account for the previous 3 months
You must acquire a clear idea regarding how to use a personal loan to fund travel expenses. Make sure that you compare the personal loan interest rates and processing charges of various lenders before you avail such credits.