Tick Off Your Adventure Bucket List with Travel Loans

Updated on: 19 Jan 2024 // 4 min read // Personal Loans
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You put in a lot of hard work to fulfil all the needs of your loved ones. But how often do you take care of yourself? How often do you take some time off, and explore the wilderness, try a new cuisine or sit back and relax? Probably never. Sometimes because of time constraints or due to the scarcity of funds.

But you don’t need to hold yourself back anymore. After all, you now have the alternative of Applying for a Travel Loan, and plan an excursion to your favourite destination! Now isn’t that genuinely exhilarating? We bet you want to know more!

What is a Travel Loan?

A travel loan is primarily a Personal Loanthat is offered by a bank or an online lender to help you take that much-deserved vacation to any destination that you want.

A travel loan can be used to pay any and all of your expenses, right from airfares to hotel tariffs, from tour packages to travel accessories and more.

This type of loan is unsecured and is usually granted on the basis of your income, your ability to repay as well as your credit history.

Why Opt for a Travel Loan?

The most evident reason to take a travel loan is that you get to explore your chosen destination without having to go through the endless turmoil of having enough money. However, some more advantages come with the Personal Loan. Let us take a close look at them:

  • The application for Travel Loan requires minimal documentation and is a hassle-free process.
  • Unlike other types of loan, a travel loan gets approved very swiftly, and you can expect the disbursal of the amount in as little as one day.
  • This type of loan is accompanied by exceedingly flexible repayment options. If you wish, you can even opt for weekly or fortnightly instalments.
  • The tenure of repayment is also flexible and allows you to divide the EMI (Equated Monthly Instalment), anywhere between 12 to 60 months.
  • There are numerous repayment options such as via cash, cheque, online transfer and even Credit Cards.
  • A travel loan is unsecured and doesn’t require any asset as collateral or even a guarantor.
  • If needed, you can opt for part-payment or pre-closure of the loan, after 12 months.

What is the Ideal Loan Amount?

Before applying for a travel loan, we suggest you draw a rough estimate of your expenses and make a budget. To do so, you can start by researching the destination you wish to visit. Shortlist the activities you want to do on your trip, as well as the spots that you would like to cover. Based on this, ask your travel agent for an appropriate budget.

Make sure that your budget includes both, your major as well as minor expenses. You airfare, hotel stays, local transportation and sightseeing will comprise of your sizeable spending, while food and beverages, tips, shopping, and other spending can be counted as little expenses. After taking all of these aspects into consideration, add around 20-25% to the estimated amount. This will act as a buffer, in case of any contingent overheads, and allow you some breathing space.

Now that you know the cost of the trip check how much you can conveniently raise on your own. After this simple calculation, consider looking for a loan for the remaining amount.

Worried that your trip is too elaborate and quite expensive?

Don’t worry! You can opt for a loan amount of up to 50 Lakhs! We believe that it would be more than sufficient to cover you. Isn’t it?

What isthe Interest Rates for Travel Loans?

The rate of interest charged on travel loans will vary on the basis of the lender you choose, on the principal amount as well as the repayment tenure. However, you can expect the rates to be in the range of 10.99% to 24% (as per the current market scenario).

Are You Eligible for a Personal Loan?

All financial institutions gauge the eligibility of an individual for Personal Loans by:

  1. Income – A minimum of 20,000 per month (for salaried individuals, professionals as well as business owners).