Travelling is always exciting as it is about discovering new places, meeting new people, learning new customs, food and many more. Most of us travel for adventure, where as some for escaping the hustle and bustle of everyday life. Day to day routine work gets boring for everyone and hence a break is needed in life, and going on vacations really provides a great escape. But travel is not always about fun and adventures, sometimes it can be about attending unavoidable family or social function, while some time it can be a travel related to health care issues of your own or your near and dear ones. Situations like these cannot be avoided and you need to travel anyhow.
However, whatever be the reason of your travel, money is indispensable and what if you don’t have the required sufficient amount of money with you? This situation can have only two outcomes- you may not be able to travel or you need to arrange for the funds. One of the smartest way to finance your travel is through online personal loans.
A travel loan can be easily availed to fulfill your dream of travelling to your dream destination, whether it may be foreign or domestic location. These loans are basically personal loans and hence, are unsecured in nature and hence can be offered without any guarantor or collateral. But depending on the banks policy some lenders may ask for a guarantor with high loan amount.
Things to Know About Personal Loan for Travel
A personal loan is an unsecured loan with multipurpose nature which means you can use this loan for any purpose, including trips and vacation funding. This loan can be used to cover all aspects of your trips such as air tickets, accommodation (hotel stay) and purchases and even more.
Processing of this loan is comparatively fast and simple. The thing required is- you should fulfil the eligibility criteria and you need to have appropriate documents.
The only thing which can make you think is the interest rate. Personal loans have an interest rate starting from 10.35% p.a. and can go up to as high as 24% p.a. per annum. Still Travel Personal Loans remain cheaper than credit cards, spendings of which may incur interest rates starting from 24% p.a. and up to 36% p.a.
Some banks and NBFCs have come up with specific kind of personal loans for travel, termed as – ‘Travel Loans’. Personal loans are usually unsecured loans, travel loans can be both secured and unsecured in nature. The unsecured nature of this loan makes it easy for the borrows to avail this loan even when they don’t have any guarantor. Whereas when it is secured in nature it makes affordable for the borrowers as the interest rate decreases with the security.
One more advantage with a personal loan is that it can be availed online also, no need to run to the bank frequently. One can apply it through their laptops and mobiles while being at home or anywhere. The complete process is 100% online including the documentation process. The processing goes very fast and one can get the loan within 72 hours with instant approval from a platform like Finance Buddha.
When to Opt for a Personal Loan for Travel
Although the interest rate of the personal loan is high, it is suggested to go for a personal loan for travel purpose whenever you are out of cash and don’t have enough fund to finance your travel. This is suggested because it’s never a wise thing to use your emergency savings and equity shares to fund your travel. You can take a personal loan travel indeed! The tenure of this loan is short and hence it can be ended in short duration. The other plus point with this is you can also part pay your loan or even it can be foreclosed once you have enough fund with you.
Simple Repayment Options with Short Tenures
For the repayment flexible tenure is available which can range from 1 year to 5 years. EMIs can also be calculated as per lender policies, loan amount, and loan tenure and applicants profile. Loan prepayment options are also provided by some lenders. But you need to check for this before signing the loan agreement.
Eligibility and Documents
Both salaried and self-employed individuals can apply for a personal loan for travel, but the approval totally depends on the eligibility of the applicant. The eligibility criteria vary from lender to lender. Documentation required is minimum as it is an online process. Documents required include- ID proof, address proof, bank statement for a minimum of 3 months and passport size photograph and signature copies. Other than this, some lenders may also ask for trip details like accommodation bookings, airfare, and etc. but it is not required by all.