Going on an unexpected trip can be an exciting experience, but it can also significantly impact your finances. The high cost of last-minute flight tickets, pre-booked hotel rooms, and increased rental car fees can contribute to financial strain. This is where travel loans can help you out. A travel loan is a type of personal loan that can be used to fund your foreign trips. But, how can travel loan efficiently help you out?
Travel loans provide flexibility as they allow you to plan and pay for your travels as necessary without having to save up in advance or dip into your savings. Such loans offer several benefits that make them a desirable option for those who want to plan their trips without having to worry about the cost. Here are 5 major benefits of using a travel loan when planning a vacation to an exotic location:
Hassle-free application: A personal loan for travel offers a convenient and straightforward way to finance your trips, whether you have a spontaneous plan or a fixed itinerary. You can easily apply for the loan online and the approval and disbursement are quick. The application process is straightforward, requiring only a few basic details and minimal documentation. The loan amount will instantly be deposited into your account upon completing all necessary formalities. However, do note that the time for disbursement of loan proceeds varies across lenders.
Loan amount: Financial constraints should not hold you back when planning a much-anticipated trip. Whether your dream destination is a road trip to Leh or a beach vacation in the Maldives, a personal loan can provide the necessary funds. You can obtain a loan ranging from Rs 50,000 to Rs 40 lakhs, allowing you to focus on your travels and leave your worries behind.
Repayment options: A travel loan offers flexible and convenient repayment options. You can typically determine the tenure of repayment and can choose to repay the loan in Equated Monthly Installments (EMIs) over 12 to 60 months if you obtain a travel loan. If you even decide to pay off the loan early, you have the option to make a pre-payment or partial payment before the end of the loan’s tenure. Also, these terms are stipulated by the lender so do ensure that you select the one that offers the best terms.
No collateral required: A travel loan is a type of unsecured personal loan, which means that it is not backed by any collateral. This makes it easier for individuals and families to access the funds they need for their travels, without having to worry about putting up collateral.
No restriction on the end use: Some believe that a travel loan is only for covering ticket expenses, but it can be used for various holiday or other related expenses. You can use the loan to pay for airfare, lodging, food, excursions, and sightseeing activities. If you intend to go shopping given the destination you have selected, you can use the loan proceeds for that too.
Conclusion
A travel loan can finance your travel expenses, allowing you to embark on your desired trip without worrying about finances. However, it is important only to borrow an amount you can comfortably repay. One way to come up with that figure is by using a personal loan EMI calculator. All you need to do is input the loan amount, the interest rate you are looking to avail, and the repayment tenure. Based on these details, you will get an estimated monthly EMI amount. If the amount exceeds your budget, you can always go back and make changes to the loan amount till you get a suitable EMI amount.
