When you travel, it not only relaxes your body but also your mind. It does not matter if you are tired of your busy work routine or want to spend time with loved ones; going on a trip is always a great feeling. But there might be a shortage of funds when you plan to travel. So, what can you do in such a situation? Using your savings may not be the best option, but it is suggested that you take out a travel loan.
Many banks and NBFCs offer holiday loans, also known as personal loan for travel. A travel loan enables you to go on a trip as and when you want. There is no need to give security for this loan, and you may use the money as you like. As you need to pay the EMIs to repay a travel loan, there is no stress on your finances. Also, you can get the loan amount in your bank within a few hours; you can easily plan a last-minute trip.
Read on to learn how to apply for a personal loan for travel and what benefits you can get from it.
Features of a Travel Loan
A holiday loan, famous as a personal loan for travel, is a popular loan in modern times. People of all ages opt for this loan when they are short on funds but have to go on a trip. It can be a honeymoon, a family trip, or a leisure holiday; this travel loan can be used for all your travel needs. Here are some of the key features of a travel loan:
- Loan Amount: You can apply for a personal loan for travel for amounts starting from Rs. 1 lakh and going up to Rs. 10 lakhs. Such high-value loans can easily pay for an overseas holiday as well. You can choose any amount in this range based on your eligibility.
- Loan Tenure: Like every other personal loan, a loan for travel can be repaid in EMIs over a period of time. Loan tenure for holiday loans can be between 12 and 60 months. You can select any loan term based on the EMI amount you can afford.
- Interest Rate: There is no need to offer a security for this loan, and the interest rates start as low as 12.99%. With such great perks, opting for a travel loan can be a good choice if you are short on funds or want more flexibility in terms of money when you travel.
- Online Process: Most banks and NBFCs offer an online interface to apply for a personal loan for travel. You need to visit the website or download the mobile app of the lender to complete the process, which will take only a few minutes.
- Quick Approval: Holiday loans come with a quick approval process where the lenders can process the application in a few hours. The money is sent to your bank quickly, making this loan a good choice in urgent situations.
- Paper Work: You need not submit too many papers to qualify for this loan. Only some basic papers are needed to complete the process. If you apply online, you can upload scanned copies of the papers.
Eligibility for a Personal Loan for Travel
To be eligible for a travel loan, you need to meet all the rules given by the bank or NBFC. Some of the key aspects that you must fulfill are:
- Age: You must be older than 21 but younger than 60 to apply for holiday loans.
- Income: You must get a salary of at least Rs. 25,000 every month in your bank.
- Work Type: You must work as a private or public company employee.
- Work-Ex: You must have a work-ex of at least one year. Out of this last six months must be with the present employer.
- Paperwork: You need to provide documents like an Aadhar card, a PAN card, a voter ID, a bank statement, etc. to the lender.
- Credit Score: You must have a CIBIL score of 750 or more to be eligible for a personal loan for travel.
Apply Personal Loan for Travel
You must apply for a travel loan online, as this method is very quick and easy to complete. Before you start, scan the documents and save them on the system. Offline methods are very slow and not efficient. Here are the steps you must follow to apply for a personal loan for travel online:
- Visit the official site of the bank or NBFC. You may also get the mobile app and install it to apply for a travel loan.
- On the home page, look for the link for ‘Personal Loans’ and click on it.
- Here, you can select the option for a travel loan or a personal loan for travel.
- After you click on it, a new screen will open on your device.
- Here you must enter every detail that the lender needs. This can include your name, age, date of birth, PAN number, income, loan amount, loan tenure, etc.
- You may also need to upload scanned copies of some papers.
- Verify the details again, and then click on the submit button.
- You will receive a reference number via email or phone. You can use it to track the loan status.
- If your profile meets the travel loan eligibility, then the lender’s representative will contact you.
- You might need to provide some more papers to process the loan.
- Once complete, you will need to sign a loan agreement. Then the money will reach your bank in a few hours.
Holiday loans offer great benefits when you wish to travel but are short on funds. You need to opt for the best lender to make the most of this loan. Select the travel loan wisely and keep your budget in mind, to avoid any issues in the future. Piramal Finance will help you decide on the best loan for travel. Visit their website to read informative blogs and explore their products and services.