Personal Loan

All You Need to Know about Eligibility, Documents and Interest Rate of Personal Loan for Travel


A personal loan is a perfect solution for anyone who wants to fund a grand vacation. However, this also means that many travellers now need cash for a much shorter period than before. Fortunately, several lending institutions offer loans specifically for those who plan to use them for travel purposes. Many travellers may not know this, but their bank can help them with their money needs while travelling. 

Keep reading to learn more about the specific requirements you must meet to qualify for a personal loan for travel purposes.

Who Can Qualify for a Personal Loan for Travel?

There are a few basic requirements that you must meet to qualify for a personal loan for travel. First, you must have a steady source of income that you can use to pay back the loan. Most lenders will not approve loans to borrowers currently in debt. In addition, you need to have enough credit history with your current lender to receive a favourable rate for your new loan. Finally, you must have a good reason for needing a loan. 

It may sound a little obvious, but many travellers don’t realise they can use this financing to pay for almost anything. For example, a cash-strapped traveller may use a personal loan to pay for an upcoming vacation or a business trip. In addition, you can also use it to cover unexpected travel expenses like baggage fees or flight delays.

How to Find a Personal Loan for Travel?

Finding a personal loan for travel isn’t difficult, but it does require a little legwork. Before searching for a loan, think about where you’re headed and how you will fund your trip. Once you have a general idea of where you want to go, conduct a basic search for loans for travel. Here, you can look for specific criteria like interest rates, fees, and loan amounts that you’re looking for. After you’ve found a few lenders that meet your criteria, call them up and ask to speak with a loan officer to understand the terms of the loan better.

Personal loans for travellers are typically short-term loans that can be used to cover travel costs, such as lodging and travel expenses. To qualify for a personal loan for travellers, you must meet the following requirements: 

  1. You must have a valid driver’s licence or state-issued ID card. 
  2. You must be at least 18 years old. 
  3. You must have a good credit history. 
  4. You must have a good job or be self-employed. 
  5. You must have enough funds available in your bank account to cover the loan amount.

Things to Consider When Selecting a Personal Loan for Travel


Personal loan for travel is one of the most popular financial tools available to consumers today. You’ll need to consider a few things before getting a personal loan.

First, you’ll need to know the amount you’re willing to borrow. Second, you’ll need to know the type of loan you’re looking for. Short-term loans are typically suited for travelling. Long-term loans are typically used to buy a home or pay off debt. Third, you’ll need to know the purpose of the loan. Finally, you’ll need to know how much money you can repay easily.

Here’s what you’ll have to consider before reaching a decision:

  1. Your travel budget: Before applying for a loan, you need to know how much you will use it for. In addition, you should know how much you have saved or are willing to put down as a down payment. It will help you determine if you can afford the loan amount that a lender offers. 
  2. Your credit score: Your lender will want to know how much of a credit risk you are. It is why they will usually check your credit score and report on it when you apply for a loan. You can view your credit score for free on various reputable websites on the internet or call your bank for help. You can also pull this information yourself with a little digging.
  3. Loan term: While a longer loan term may be appealing in the short term, it may cost you more in the long run. 
  4. Application fees: Most financial institutions will charge some application fees. Be sure to read the fine print, so you know what this fee is for and how it will affect your loan application.

Documents Needed When Taking Personal Loan for Travel

Lenders often require you to provide additional documentation with your loan application. This documentation may also include the following: 

  1. Tax forms – These documents will allow your lender to confirm income and verify your employment status. It is an important aspect that should not be overlooked. 
  2. Employment verification – You will often be required to provide a written letter from your employer verifying your employment status. It is often a requirement for self-employed borrowers as well. 
  3. Bankruptcy documentation – It can vary from lender to lender, but it is a good idea to include some form of bankruptcy documentation with your application. Some lenders will only accept a copy of your bankruptcy discharge, while others will accept a simple letter. 
  4. Credit card statements – Some lenders require you to provide a copy of your last three credit card bills. It is often an error that many borrowers make. 
  5. Other documents – Depending on your lender and the type of loan you are applying for, such as a government-issued photo identity card and passport may also be required. You should always read the application thoroughly and ask any questions you may have before signing and sending your application.

Interest Rate When Taking Personal Loan for Travel

While it may sound straightforward, finding the right loan for you can be difficult. It is because many factors can affect your interest rate, including your credit score, loan amount, and loan term. You’ll need to find a comparable loan to understand your interest rate accurately. It will allow you to see what interest rate you are receiving now and how it compares to others. 

If you are considering a high-interest loan for your travel expenses, you should shop around and get a better idea of your options. Consider an alternative financing option to see if you can get a better deal on a loan.


A personal loan for travel is like any other loan coming with its advantages and disadvantages. However, you will need to meet certain requirements to be able to receive funding. Understanding these requirements will make finding a loan that fits your travel goals much easier. If you’re looking for a flexible programme that suits your needs instead of imposing terms on you, check out Piramal Finance.