A travel loan is essentially a form of Personal Loan that enables borrowers to cover their traveling expenses only. A Personal Loan in India may be taken for a number of reasons including payment of debts, education, marriage, vacation, and healthcare. However, if you Apply for this Personal Loan variant, you have to tell your lender that it’s for travel purposes only and not for anything else. Both public and private sector banks are constantly making attractive travel loan offers to their customers with a view to making their travel experiences worthwhile. So, if you are smitten by the travel bug and have a wish to explore this beautiful planet, the only way out could be through travel. If you can’t immediately afford it, take a travel loan. On the flip side, however, this experience comes with certain conditions, too.
The loan amount is paid into the borrower’s bank account in a single lump sum to make access to the funds easier. The loan will come with a pre-determined repayment schedule for the entire loan tenure. Every repayment made goes towards repaying the principal amount along with interest. Repayments are usually debited directly from the borrower’s bank account at the chosen frequency for the entire loan tenure. This leads to the prevention of accidentally missing any payments.
A travel loan is generally unsecured by nature, which implies that you don’t need to keep any collateral or guarantee for it. However, these can be fully or partly structured as secured loans. Moreover, the lender gives you a maximum of 80% of all travel expenses likely to be incurred and this includes tickets, insurance, visa fees, stay, transportation and other travel-related expenses. The entire loan amount to be sanctioned, again depends on the borrower’s repayment capability.
Travel loans are available for low amounts and turn out to be cheaper in terms of costs when compared to Credit Cards. Moreover, their repayment periods are flexible and their processing takes minimum time and formalities. All you need to show is a proof of identity and residence and regular income, which guarantees that you have the financial ability to pay it back. Travel loan tenure may extend between 1-5 years and is generally sanctioned to those between the ages of 21 to 60 years. There is a fee for loan processing, ranging between 1-3% of the full loan amount. However, this again varies from bank to bank.
This scheme allows you to choose any destination and provides a maximum ICICI Personal loan limit of 20 Lakhs. The loan application and sanction processes too, are hassle-free and quick. No collateral or any form of security is required either. Interest rates start at 10.99% annually.
The Tata Capital Personal Loan scheme will finance your trip to just anywhere in the world. You get financial assistance of up to 25 Lakhs. This, however, depends on your eligibility for a Personal Loan. Interest rates range between 11.49% and 21%. No guarantee or collateral required either.
Take your family for that dream vacation anywhere in the world. What’s more, get your financing in 5 minutes flat! Bajaj Finserv Personal Loans available up to a maximum limit of 25 Lakhs and interest rates start at 12.99%. Also, Bajaj Finserv takes care of your hotel accommodation and ticket bookings.
HDFC Bank too, is at your disposal to make your travel dreams come true. You get to travel anywhere in the world with a maximum HDFC Personal Loan limit of 15 Lakhs with interest rates starting at 11.39%. The loan is sanctioned in an unbelievable 10 seconds for HDFC customers. Non-HDFC clients get clearance in maximum four hours. As a borrower, you are also given the option of choosing your repayment tenure.
As you opt for a travel loan, not only do you make your travel dreams come true but enjoy some benefits as well. The fixed interest rate keeps your repayment amounts the same and makes it easier for you to budget your vacation. It also gives you a clear repayment structure because you exactly know when end date has been set and the financial commitments that come with it. Moreover, you get the additional advantage of withdrawing cash without having to pay a cash advance fee that comes with Credit Cards while your holiday cost gets spread over the loan period as well.
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