The excitement of planning a trip, the anticipation of packing your bags, and finally set off on an adventure is real. But sometimes, travel plans can happen spontaneously, and you may have no time to arrange funds for flight tickets, accommodation, shopping, and other travel-related expenses. Here, a travel loan can be a life-saving option.
Also known as personal loans, travel loans help you manage travel expenses without hassles. Whether you are looking to explore a new destination or take a once-in-a-lifetime trip, a travel loan can help you make it happen. If getting a personal loan to fund your dream trip sounds intriguing, here is everything you need to know about travel loans.
What is a travel loan?
A travel or personal loan for travel is an unsecured loan that you can avail to fund all your travel-related expenses, including hotels, airfares, tour packages, etc. The advantage of taking out a personal loan for travel is that you don’t have to put up any collateral – all you need is a good credit score and meet the easy eligibility criteria of lenders to qualify. You can then use the loan to fund the entire trip with your friends or family and pay it back through affordable Equated Monthly Instalments (EMIs) over a loan tenure suitable for you.
Why should you apply for a travel loan?
Easily eligibility criteria
The eligibility criteria for travel loans are easy, and these loans are offered to both self-employed and salaried individuals. The eligibility criteria may vary from lender to lender, but the basic requirements include the following:
- Age: 23 years to 58 years (for salaried professionals) or 28 to 65 (for self-employed)
- Income: An applicant must have sufficient income to pay the personal loan EMI. The minimum salary requirement can vary depending on the applicant’s profile.
- Work history: If you are self-employed, you may need business experience of a minimum of three years.
Minimal documentation
The personal loan application online process is extremely simple as the lender only needs basic documents to process your application. Just visit the lender’s website, fill out the form, and upload the relevant documents such as an Aadhaar card, PAN card, etc. You can fulfill all the formalities online and get an instant personal loan after the lender completes the verification.
Flexible repayment schedule
Most travel loans have a flexible repayment schedule ranging from one to five years, making it easy to pay back in affordable monthly installments. You can also use a personal loan EMI calculator to find a competitive EMI amount for the best results. You can find the calculator on the lender’s website and calculate your EMIs by entering the preferred loan amount, interest rate, and loan tenure. You can also compare EMIs for different loans and repayment options and choose short or longer repayment terms per your financial situation.
Closing thoughts
Don’t let the expenses of a vacation keep you from enjoying some well-earned time off. So, opt for a personal loan for travel and enjoy the opportunity to explore new cultures, meet new people, try fresh food, and see amazing sights. However, check the latest personal loan interest rates and borrow an amount you can comfortably repay.
