Make Most of your Long Weekends with a Personal Loan for Travel

A long weekend is a sheer delight to feed your soul from the humdrum of life. And many travel enthusiasts do set aside enough funds each month for realising their travel plans on these free holidays. However, a large number of people fail to be financially adept and seek additional funding every time they wish to plan a trip. Herein, it is recommended not to use your Credit Card to fund the travel expenses as it could initiate a financial mess for you.

You can instead Apply for an Unsecured Personal Loan for Travelling. A Personal Loan is an all-purpose loan and can be used to meet any immediate financial need such as a wedding, vacation, medical expenses or more. Personal Loans can be utilised for just about anything since the lender does not restrict the end use. Besides, it is an unsecured loan, and no security is required to be eligible for the credit.

The processing of a Personal Loan is faster, and the documentation process is also less complicated, and thus it is an ideal emergency loan option. You can opt for flexible, easy instalments as per your repayment capacity.

Though Availing Personal Loan for Travel is one of the relevant credit options, it is better to evaluate your decision before applying for the loan. You should explore all the possibilities of soft funding before applying for a loan.

You must budget the travel expenses by choosing a destination as per your budget. The purpose of planning a vacation is to get away from the daily monotonous routine and come back rejuvenated. So, think before shouldering anout-of-the-pocket EMI for a few years. A travel plan meant for rejuvenation should not end up becoming a reason for financial stress in the future. However, if you have evaluated your decision and compulsorily need to avail a loan to fund the trip, then Personal Loan for Travel is well recommended.

There are a few pre-requisites that you must fulfil to qualify for a Personal Loan. These are:

• Eligibility:

  All banks and financial institutions prefer salaried individuals who are permanent employees of Government/ Semi Government Departments, Autonomous bodies, MNCs, Corporates and reputed Companies and Defence Personnelfor credit products.

  A salaried individual should have at least 3 years of work experience in the present job to apply for a Personal Loan while Self-employed professionals and business owners should be in the current business for at-least last 3 years.

  Most banks have a minimum salary eligibility criteria to extend the loan, for example, at Punjab National Bank your minimum salary must be between Rs. 10000/- to Rs. 15000/-, subject to the city of work and for ICICI Bank the cap is set at Rs. 17500/- to 25000/-.

• Quantum:

  The quantum of the loan depends on the income of the applicant. In PNB the loan quantum is higher if the applicant has completed 3 years of service in the present job and the salary is credited to the account maintained with them. The maximum loan quantum at PNB is Rs. 10 lakh, and in ICICI bank it is Rs. 20.00 lakhs.

• Interest:

  Interest is applied on reducing balance of the loan amount. The interest rate at ICICI Bank varies from 11.25% p.a. to 22.00 % p.a., while for PNB it starts from 10.75% p.a.

• Repayment:

  The entire loan should be repaid within 60 months or the remaining service of salaried individuals whichever is earlier. The loan to net income quotient fixed by banks ranges from 40% to 50%. It is recommended to choose the loan amount and repayment tenure accordingly. If the income of the applicant is not very high then choosing a longer tenure to reduce the EMI burden is advisable.

• Security:

  No security is required to pledge for a Personal Loan, but eligibility criteria may vary greatly for each lender. For example: For PNB Personal Loan for Travel, a guarantee of the third party is insisted.

• Processing Charges:

  You also require paying processing charges ranging from 1% to 3% of the loan amount. PNB charges processing charges up to 1.8% while ICICI Bank charges processing charges of 1.25% of the Personal Loan amount.

• Pre–payment charges:

  PNB does not charge any pre-payment charges. If one has availed Punjab National Bank Travel Loan, then it is recommended to credit any surplus funds available to the loan account. This will reduce the loan tenure and interest burden. However, ICICI bank levies pre-payment charges of 5% in certain cases. If more than 12 EMIs have been paid and if the loan is pre-paid out of customer’s fund and not by balance transfer, pre-payment charges are not levied.

• Credit Score:

  Credit Score marks the credibility of the applicant. If you have been regular in your loan EMI and credit card repayments, your credit score is bound to be good, making you eligible for a low rate of interest. To avail an affordable Personal Loan, you require a credit score above 700.

• Documents Required:

  Address proof, Photo ID proof, 6 months salary slips and salary certificate, Form 16, 2 years’ IT returns, 6 months Salary Account Statement, and 2 passport size photographs are required from salaried individuals. For self-employed professionals, Address proof, Photo ID proof, along with 2 years’ IT returns with the Balance sheet and P&L Account Statement are required.

  Assessing all these factors carefully, you can successfully apply for a Travel Loan and be assured of swift approval before the next long weekend.

Also Read: 4 Best Travel Loans in India for Those Who Have Been Bitten by the Travel Bug

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