Are you a travel freak? Are you wondering how to fund your Dream holiday with travel loans? Well, then you are at the right place!
You might be aware of the quote, ” jobs fill your pockets, adventures fill your soul”!
However, not every time a job fills your pockets to travel. Additionally, if you are a travel enthusiast, you probably plan to travel a minimum of twice a year.
On that note, many of you have plans for dream holidays or vacations. However, one obstruction that might come your way is a lack of funds. No matter how much you save, you end up with zero savings when it comes to travel expenses.
This is when taking a travel loan can turn out to be the most convenient option.
Opting for a travel loan is indeed an excellent way to gain short term goals of traveling.
For instance, as you take home loans for building your dream home, personal loans for the most precious day of your life, i. e wedding. Similarly, travel loans help you to see the world in a better way.
Loans are generally great as it provides you brilliant interests and in fact, is a safe way to fund your dream vacation.
However, you must know the terms, conditions, and process of taking a loan in a sensible manner. You can ever refer to a travel loan as “a loan that is intended for traveling purposes. It is such a cost that covers up all your flight expenses, tickets, accommodation expenses, tours, and airfares.” In fact, in case you have any other traveling desires, you can even fund that with your travel loan.
How does a travel loan work?
Basically, a travel loan works similar to a personal loan. In this, you can borrow an amount of 5 lakh based on your current circumstances, urgency, etc. Apart from that, you can even select the loan term from a range of 1 year to 5 years. Consequently, the entire amount of your loan determines the amount that you need to repay.
With this, you can even choose the recurrence of your payment. Best known as the EMIs. You can consider it monthly or fortnightly for helping yourself with seamless cash.
Many platforms offer affordable, and amazing EMI plans that are in fact easy to manage as well. Opting for loans from such platforms render you with amazing benefits as well.
How to pay a travel loan?
In recent times, people are interested in traveling from place to place quite often. According to research, customers that travel frequently to countries like the USA, Europe, Australia, take loans that are meant for luxury trips. These customers require funds immediately in their accounts.
Once you apply for a travel loan, the amount is paid to you in a lump sum that is straight away credited to your bank account.
This money that the bank transfers to your account on your request are accessible. This is when you can start planning your dream trip.
Each EMI that you work towards, will depend on the initial amount that you borrow plus the interest.
Speaking about EMIs, they are debited from your bank account right away on a particular day of the month. This date is decided on the frequency of the loan. Once you opt for a loan, you are provided with all the details of EMIs.
Moreover, travel loans are meant for a shorter period. This is why it is also referred to as a sort of unsecured loan. Yet, it is still preferred by many because of the amazing benefits that it provides.
What are the advantages of travel loans?
While saving your cash for traveling purposes is good, taking a travel loan has its benefits. The prime benefits of travel loans are,
- These loans are quite cheaper when it comes to credit cards. While you cannot withdraw money anytime anywhere with a credit card for being charged, a travel loan allows you to withdraw cash anytime without charging any fee.
- You get a financial commitment. You get your EMIs with a fixed interest rate which can help you to plan your repayment easily.
- Travel loans provide flexible repayment sessions which range from 6 months to almost 60 months.
- The most amazing benefit is that the whole processing of travel loans is extremely swift and hassle-free as compared to the other types of unsecured loans. It hardly takes 3-5 days to transfer funds into your account.
- Who would want to take a loan on their shoulders? Well, with a travel loan, you can even prepay the loan if the particular bank avails of this facility.
What are the documents that you require for a travel loan?
Basically, this differs from bank to bank. However, there are a set of documents known as the standard documents that are generally required for usually all kinds of unsecured loans. This documentation might be similar to a travel loan as well.
- An application form along with photographs
- A statement of your salary
- Address proof, age proof, driving license, identity proof, Aadhar card, passport, or any other Government document will work.
- A good credit score.
What are the eligibility criteria for taking a travel loan?
The travel loan is known as a signature loan as well. It is generally rendered to salaried employees or self-employed individuals. The eligibility again differs from bank to bank. However, few necessary guidelines are,
- Age: Minimum:21 years, Maximum:65 years
- Nationality: Indian
- Employment: Self-employed in business for 2 years and 1 year in the current business. Salaried individuals can also avail of the loan
- Income: Minimum: Rs4000 – Rs20000 per month. (varies from area to area)
- Tenure: Minimum: 6 months, Maximum: 60 months
- Preferred Credit Score: 750
Now that you know, opting for travel loans is that easy, doesn’t travel sound fun? Well, travel loans are set by each bank according to their own set of regulations and criteria. However, it depends on you how to choose a travel scheme wisely after going through a thorough check on the terms and conditions.