A travel loan is an affordable financial tool in India customised to cover every expense of a trip, thereby reducing your worries of travel finance. With this type of personal loan, you can travel to any place within or outside the country.
The earth pyramids of Cappadocia, Turkey, the bright pink colour of the Pink Lake, Australia, or even the deep red colour of the Lake Natron, Tanzania are some of the astonishing sights that can leave you spellbound and make those memories seem worthwhile.
Combined with these, Petra (Jordan), Arashiyama Bamboo Forest (Japan), Lake Baikal (Russia), and Angkor Wat (Cambodia) are some other wonders that can mesmerise you with their exoticness.
Plan your itinerary and go for a travel loan to receive the necessary financial support.
Why Should You Avail a Loan to Travel?
Travel loans are generally personal loans that NBFCs and other financial institutions offer. A few reasons why you should avail a personal loan for travel are as follows:
1. You need not pledge collateral
Travel loans are unsecured. So, you don’t need to offer collateral or an asset to avail them. There is no risk of asset confiscation.
2. You can avail these loans within a day
You can avail Travel Loan instantly i.e you can get the funds in your account within 24 hours. NBFCs have a less stringent and uncomplicated process that lower the approval and disbursal time.
3. These loans offer ample financing
NBFCs usually provide higher amounts up to Rs.25 lakh with a personal loan for travel to adequately cover any domestic or international trip.
4. Financial institutions give you sufficient time to repay
The repayment tenors for travel loans typically range from 12 months to 60 months. Hence, you can easily avoid making these loans a financial burden on your income. Simply choose a convenient tenor according to your repayment capability.
5. Companies offer pre-approved offers to lower the hassle
NBFCs bring exclusive and custom pre-approved offers which help save time by simplifying the process of getting funds. These offers are available with not only personal loans but also business loans, home loans, and a list of other financial products and services. Check your pre-approved offers by submitting only your name and phone number online.
What to Do Before You Avail Travel Loans?
Some of the checks are there to make before opting for this travel finance:
I. Calculate the EMIs
Make sure to calculate your loan EMIs before applying. This way, you will be able to assess whether you have the capability to manage your EMIs for travel loan every month.
Using a Loan Calculator is an effective and time-saving way to compute your loan EMIs and eligibility.
II. Ensure you have a surplus after paying the EMIs
It is necessary to ensure that you have enough cash in hand after paying the EMIs. One of the easiest ways to do so is to calculate your debt-to-income ratio. It is the ratio between your monthly income and fixed obligations. You must ensure that the ratio is not more than 50%.
What Do You Have To Do To Avail These Loans?
You only need to do the following to apply for a loan:
A. Fulfil the personal loan eligibility criteria
Companies need you to be between the ages of 23 and 55 years to become eligible for these loans. Another personal loan eligibility requirement is that you must be employed or own a business that is at least 3 years old.
B. Have a healthy credit score
A credit score of at least 750 is mandatory to apply for travel loans as they are collateral-free.
C. Submit the necessary documents
KYC documents including PAN, voter ID, passport, Aadhaar, and driving license are mandatory to apply for a travel loan.
Along with the above, you have to produce the following:
- Bank account statements of the last 3 months, salary slips of the previous 2 months, and employee ID card if you are employed.
- Last year’s turnover audited by a CA and income tax returns of the last year if you own a business.
A travel loan also comes with a competitive rate of interest making it a lucrative financing options. Do make sure to check the rates and fees before you apply.