A personal loan is an unsecured loan that helps people take care of significant purchases and expenses. It is an instalment credit — the borrower receives the requested amount in lumpsum in their bank account and pays it back through monthly instalments. A personal loan can be taken for various purposes, including buying a new vehicle or an appliance, renovating a home, managing wedding expenses, funding higher education costs, or planning a vacation. Often, people also take personal medical loans to take care of the urgent medical needs of their families.
As most countries are now open to foreign tourists after the COVID-19-related restrictions, many Indians are planning their dream-destination vacations more often. A personal loan for travel helps people fund their travel plans. Interestingly, in the recent past, many young people have opted for personal loans for travel. This indicates that there is a massive demand for personal loans for travel.
Why Take A Personal Loan For Travel?
Going on a holiday can be expensive, even if it is a domestic vacation. Many young adults choose personal loans for travel instead of exhausting their savings on vacations or postponing travel plans due to a lack of funds. Any individual who is eligible for a personal loan can get their loan for travel approved in minutes.
Let’s look at the eligibility criteria for a personal travel loan.
Eligibility For Personal Loan For Travel
The eligibility criteria for a loan for travel is similar to the one for a personal loan. Any working professional can apply for such a loan. The lending criteria may differ from lender to lender.
Let us check the applicable eligibility criteria for travel loans.
- You should be at least 21 years old.
- You should have completed at least six months at your current job.
- Your credit score must be satisfactory. Usually, a credit score of 700 and above is favoured by lenders.
- The lender might impose a minimum earning criteria. Generally, applicants should have a minimum monthly income of Rs 20,000 to qualify for a personal travel loan.
For some applicants with an impressive credit history, lending institutions may offer a pre-approved personal loan. Now that the eligibility criteria are clear let’s see which documents need to be submitted for a personal loan for travel.
Documents Needed To Obtain A Loan For Travel
A travel loan can be quickly approved without much documentation. You can contact your lender to confirm which documents will be required. Generally, you may need a hard and a soft copy of the documents. Some of these documents are as follows.
- Proof of identity
- Proof of address
- Income Proof
- Latest photographs
To get a complete list of the required documents, you must check the lending institution’s official website or contact the customer care department.
Things To Consider Before Applying For a Personal Loan For Travel
Here are a few things you must remember before taking a personal loan for travel.
- Always estimate a correct budget before taking the loan. Check and include accommodation, food, ticket, and emergency expenses. Aim for a loan 20% more than the budgeted costs to be on the safe side.
- Do some research on the best lender in the market. Typically, personal loans carry a higher rate of interest than other loans. So, one should find a lender that offers the best deal.
- Ensure the EMI adjusts to the monthly budget since this will enable easy loan repayments.
Is It Easy To Apply For A Personal Loan For Travel?
It is very easy to apply for a loan for travel. Many people apply for personal loans online, and the procedure is fast and facilitates quick disbursal ins some cases. When applying for a loan for travel online or offline, ensure that the required documents are accessible and verified. It will make the application process smoother. You should not hesitate to contact your lender in case of any doubts or apprehensions.
Young adults are no longer waiting for savings to accumulate so that they can go on vacation. A loan for travel is a convenient way to meet the travel expenses for domestic and international holidays. The availability of a personal loan for travel ensures that people leave their savings and investments undisturbed. If you are an applicant with a good record, your personal loan approval is just a few steps away. Moreover, you can easily plan your repayment through post-dated cheques, online transfers or standing instructions to the lending institution.
For more information on personal loans, visit Piramal Finance and explore their products and services.