People generally tend to refrain from going to their desired locations or on frequent travels because they lack the necessary funds, or such experiences might dip into their savings. One way to indulge in such enriching experiences is to opt for a personal loan so that your finances still stay in order. You can get a personal loan for travel from any NBFCs or financial institutions. But before that, let’s understand what a travel loan is.
What is a travel loan?
A travel loan is a type of unsecured personal loan that can be used to aid your travel plans. These are approved basis you as a borrower’s credit score and ability to repay the loan. If your credit score is excellent, you may be able to negotiate a low interest rate.
Benefits of availing a travel loan
- Minimal documentation
A personal loan application requires very little in the way of documents. Although each lender has different qualifying conditions for personal loans, you must meet the minimum age, credit score, and monthly income requirements. Depending on your credit history, even pre-approved personal loans are sometimes offered by lenders.
- No collateral
Unlike some other types of loans, personal loan for travel does not require any form of collateral. It indicates that no guarantee or security is necessary to qualify for a personal loan. You can thus apply for one without anu hesitation or hassle.
- Tenure flexibility
Depending on your ability to repay, you can choose the length of your personal loan tenure. Personal loans often have terms of 12 to 60 months. You can select a longer term for your personal loan if your lender allows it.
Why should you choose a travel loan?
- Your savings and long-term investment accounts should not be bear the brunt of your wanderlust. By availing a loan, you are maximising your ability to save money for your future financial needs.
- Equated Monthly Installments (EMIs) are quite affordable, making it very simple to repay your loan to the lender. Do note that your loan amount and loan tenure have a major impact on the EMI.
Conclusion
Your mind and body feel refreshed after a trip and some exploration. Travel loans are a profitable and secure vacation financing option due to better interest rates than those offered on credit cards and the freedom to choose your repayment term. However, do note that it is a prudent practice to opt for a loan amount that you truly need, rather than opting for the entire sum that you are eligible for.
Additionally, to have a worry-free travel experience, it is wise to draw up a budget and try to stick to it to maximise your personal loan for travel.