A Sudden Holiday Plan? Avail of a Personal Loan for Travel

A rejuvenating holiday with your loved ones can be an effective way to take care of stress and come back refreshed. Such holidays can come at a cost, but that should be the last of your worries with the option of availing of a convenient travel loan. 

A travel loan is a personal loan that helps you cover all the expenses associated with your holiday – it covers the travel fares, accommodation, and any other leisure activities you want to indulge in. It is an excellent way to finance your dream holiday without dipping into your savings.

Many lending institutions offer travel loans to customers; however, one must understand the terms and conditions associated with the loan before engaging with a lending institution. The critical aspects that the borrowers can look for before shortlisting the lending institution are:  

(i) Quick processing and disbursal of loan

(ii) Option to make an online application

(iii) Lowest personal loan rates

(iv) Processing fee or other charges, and most importantly 

(iv) Getting an amount that covers the holiday expenses in entirety. 

Eligibility and application process:

A personal loan that covers the holiday expenses is extended to individuals who meet the following eligibility criteria: 

(i) Indian nationals with valid identification proof 

(ii) Aged between 21 to 65 years 

(iii) Valid proof of income (through employment or business) 

(iv) Good credit score 

The lending institutions evaluate the creditworthiness of the borrower using the above. A few additional documents can also be mandated depending on the requirements of the lending institutions. 

The application process is straightforward and usually done online on the website of the lending institutions. The process may involve the following steps:

1. Login into the website of the lending institution
2. Complete the verification requirements – usually done through OTP sent on your mobile number or Email ID
3. Fill out the loan application with personal details, loan amount, repayment tenure, etc.
4. Attach the documents specified by the lending institution
5. Wait for the representative to reach out to you or for an online update regarding your loan application
6. Review the loan offer for interest rates, loan amount, repayment tenure, and other details
7. Accept the loan offer
8. Receive the loan amount in your respective bank account as per the processing time of the
9. lending institution.

Why should one take a travel loan?

A holiday or travel opportunity is not always planned. It could happen spontaneously, or one would want to capitalize on a chance to share a holiday planned by friends or family. Not having the required funds readily available can deprive someone of an excellent opportunity to rejuvenate and make memories. A travel loan is a perfect answer to overcome the shortage of funds and go ahead with the travel plans. Other benefits of a travel loan include:

– Available at attractive interest rates

– Option to select a repayment tenure between 12 to 60 months

– Repayment through equated monthly installments

– Quick disbursal of the loan amount that meets immediate requirements

– Can facilitate a luxurious holiday for your loved ones

Travel loan interest rates

The interest rate for a travel loan or the cost of the loan is decided by the lending institution depending upon the prevailing rate of interest, tenure of the loan, creditworthiness of the customer, and their ability to repay the loan. The lending institutions may also consider additional factors to arrive at a rate of interest. Lending institutions usually offer a travel loan at a cost that is in line with the market rates. However, borrowers should meticulously evaluate the rate of interest and the corresponding EMIs before accepting a loan.

A good lending institution would be transparent with its terms and conditions associated with the travel loan and work with the applicant to structure the loan as per their requirements.

Conclusion

People usually approach a personal loan for medical or financial emergencies; however, one should understand that a personal loan is as good an option for indulging – such as a luxurious holiday with your loved ones. The travel loans are available easily and require minimal documentation. In addition, the loan disbursal process is quick and can facilitate the individual to plan a holiday in the near term. However, applicants should be wary of several key aspects before applying for a loan.

Firstly, the borrowers are advised to evaluate their repayment capabilities and other financial commitments before applying for a travel loan.

Secondly, the applicants should review the terms and conditions associated with the loan, such as the rate of interest, processing fee, repayment tenure, etc. The travel loan offered by Fullerton India can be reviewed here, and the applicants can also make a loan application online.