Travelling does a whole lot of good to you; it helps you take a break from the mundane life, lets you explore places and allows you to enjoy quality time with your friends and family. We all seek to get a sense of respite from our daily hustle and bustle and spend time at a location that helps us rejuvenate our mind, body and soul. Though travelling has its share of benefits that we all would like to enjoy at least once every three months, most of us don’t have the finances to take on the journey. And that’s when availing a holiday loan can help. Read on to know how a travel loan can help you fund your dream vacation.
What is a holiday loan?
A holiday loan is a loan you can avail to fund your dream vacation; it helps you cover all the costs associated with your travel including airfare, accommodation, tours and even purchase of travel accessories. Whether you wish to go on a trip to Egypt, Switzerland or even explore the Himalayas, you can use the loan amount for taking a domestic as well as a foreign trip. Whether it is a solo trip or a trip with friends and family, you can plan the budget of your dream vacation by opting for a personal loan for travel, without having to pledge any of your assets.
A loan for holiday is a type of personal loan that does not require you to keep anything as security or even keep a guarantor. With digital advancement, applying for this type of loan is simple as it can be done online through the lender’s website or application.
Eligibility criteria for getting a holiday loan
- You should be a citizen of India
- You should be aged between 21-60 years
- You should draw a minimum monthly salary of Rs. 15,000
- You should have a respectable credit score
Documents required to get a holiday loan
- Age proof i.e. Passport, Aadhar Card or PAN card
- Address proof i.e. Aadhar, passport, utility bill, ration card
- Two photocopies
- Income statement i.e. salary slip of last 6 months
- Bank statement of the past 6 months
Benefits of availing a personal loan for holiday
Here are a few benefits of availing a personal loan for holiday
Instant funds: A travel loan is an unsecured loan that is disbursed instantly by lenders. Within a few minutes of application, your loan status is displayed and on successful approval, you can get the funds directly in your bank account. Instant disbursal of travel loan ensures that you can plan your travel and get quick access to funds in case of an emergency during the time of travelling. To get easy access to funds, you can apply with an online lender in India as their algorithms and data systems are quick to determine your eligibility based on which the loan amount is sanctioned.
Minimum documentation: To avail a personal loan for travel, you don’t have to undertake a lengthy documentation process. Simply submitting your identity, address and income proof is enough to give you access to money. Further, with online lenders you can upload documents online too that prevents you from doing any paperwork.
Flexible loan amount: You can take a trip to your dream vacation without having to worry about funds. Depending on your loan eligibility, you can get funds ranging from Rs. 20,000- Rs. 2,00,000 at competitive interest rates. Your loan amount eligibility is decided based on your credit score, employment status, location, income, job type and others.
Flexible tenure: Repayment of travel loan can be done monthly in the form of equated monthly instalments (EMI). The repayment tenure ranges from 12 months-36 months that makes it easy for you to repay the loan easily. Opting for a longer tenure attracts low EMI, whereas short tenure increases your EMI outflow.
Builds your credit score: If you apply for holiday loan, it helps you build your credit score if you maintain a good repayment record. It is important to know that having good credit behaviour plays a vital loan in getting your loan approved. Paying the travel loan EMIs on time helps you increase your credit score that further makes it simple for you to avail more loans in the future.
A holiday loan ensures that you don’t have to liquidate your assets or mortgage them to fund your dream vacation. With this type of loan, you can plan your finances wisely and choose to travel to the destination of your choice. However, when opting for this type of loan ensure that you don’t overshoot your budget and opt for an amount that you can pay back easily every month. With this, when travelling, don’t forget to buy a travel insurance plan to cushion yourself and your family against unexpected expenses.