A trip abroad allows you to witness a whole new environment, cuisine, and culture and promises a bunch of unforgettable memories. According to an April 2022 survey by Airbnb with 1,019 participants, 75% Indians reported to having plans of travelling abroad in foreseeable future and more than a third of those i.e., 34%, were planning to do so in the upcoming 6 months.
As travelling to international locations demands a considerable chunk of money, you can meet the mismatches in your finances by opting for a travel loan, a variant of a personal loan. A travel loan is a good medium to finance your expenditures as it is unsecured in nature and allows you to use the loan proceeds as per your desire. Read on to know about the benefits of opting for a travel loan to fund your trips abroad.
- You can opt for the loan proceeds as per your requirement to explore the destinations of your choice
When you apply for a travel loan, lenders generally ask you about the loan proceeds that you need and based on your requirement, sanction the amount. You can ask for a loan amount ranging anywhere between Rs 50,000 and Rs 25 lakh. Based upon your credit score, income, repayment capacity, and other parameters, the lender may determine the loan amount you are eligible for and sanction the same.
- You can make the loan repayment in EMIs comfortably over a flexible repayment tenure
Travel loans provide flexible repayment tenure, which makes it possible for you to easily split your holiday cost over months. Lenders usually offer a repayment tenure that ranges anywhere between 1 and 5 years. You can select the repayment tenure as per your cash flow and budget. Do not unnecessarily opt for the longest tenure because while this may offer you a lower EMI, your overall interest constituent may be massive. If your budget allows you, ensure to go for the shortest tenure possible, as this would help you save considerably on your overall interest outgo.
To check a feasible repayment tenure, you can use an online personal loan EMI calculator. This calculator allows you to perform several permutations and combinations with parameters like personal loan interest rate, loan amount, and repayment tenure to derive appropriate results as per your suitability.
- You can get funding quickly owing to its simple eligibility criteria
Easy to meet personal loan eligibility criteria set by lenders make travel loans accessible. For instance, you can obtain a travel loan if you fall between the age group of 21 and 60 years, have a stable income source, and meet the minimum income requirement. Moreover, if you have a credit score of 750 and above, you can leverage this to secure sizeable loan proceeds of your requirement at a lower personal loan interest rate. Additionally, as a travel loan does not require you to provide any security or collateral, the documents required for your loan application approval are minimal. Usually, identity proof, residential proof, bank statements for the past 3 months, salary slips for the past 3 months, and 2-3 passport size photos may suffice.
If you are looking to go on a vacation abroad, do not take a backseat because of the expenses the trip may incur. In case you feel you may face monetary mismatches, you can opt for a travel loan. Given that travel loan is a variant of a personal loan, it allows you to use the proceeds for any purpose without pledging any security at flexible repayment tenure in the form of EMIs. However, before you hit on the personal loan apply online button, ensure to conduct a thorough comparison amongst lenders to choose the one providing the best terms and conditions.