We all like vacations and going to our dream places, right? But there are times when our budget does not let us travel to a certain place. Personal loans for travel are here to keep you from having to deal with that.
Many top banks and lenders in the market today will help you pay for all your travel costs and provide you with financial help. Let’s learn more about personal loans for travel in detail.
What is a Personal Loan for Travel?
Today, it’s easy to get a loan for a trip, be it a honeymoon, a trip to Disney World, or a trip to Paris to see the Eiffel Tower. Many reputable banks and lenders offer these loans. Travel loans are perfect for any traveller, no matter where they are going. This is because they offer a convenient financing option and prompt service.
Many financial institutions can provide you with a travel loan at competitive rates, small processing costs, and convenient repayment terms to accommodate your vacation plans. All you have to do is look at the interest rates and eligibility requirements for all banks online and choose the best deal for you. Whether you have a regular job or are self-employed, banks offer flexible EMIs so that you can go on a fancy trip.
But before you apply for a travel loan, you should know what documents you need and if you meet the eligibility requirements.
Eligibility for a Personal Loan for Travel
Since personal loans for travel are like regular personal loans, most of them are given to employed people. Some lenders on the market give these loans to professionals who work for themselves and have a steady income. Here are the eligibility criteria you need to meet to qualify for these loans:
- The person who wants to apply must be at least 21 years old.
- Professionals should be employed for 6 months before applying for these loans.
- People with a credit score of at least 700 are preferred by most lenders.
- You should earn at least Rs. 20,000 per month.
- To get pre-approved loans, a person must already have a relationship with their bank.
Documents Required for a Personal Loan for Travel
Most of the top lenders on the market give customers travel loans with very little paperwork. But when you apply for a travel loan, you must send in (even electronically) some important documents. Here is a list of these documents:
- Proof of identity
Identity proof is mandatory to verify that you are a real person. Aadhar, Voter ID, and Driving license are all valid ID proofs.
- Proof of address
Address proof helps in correspondence via mail. Utility bills, credit cards, and mortgage papers are acceptable as address proof.
- Proof of income
Banks need to establish that you are earning, which is why they ask for proof of income. It includes salary slips, bank statements and income tax return applications.
A few of your latest pictures will also be required. These are attached to the loan forms and should be passport-sized.
Companies may have different requirements for the documents they need for travel loans. You can check the lender’s website or talk to a representative to find out what documents you need to send.
Personal Loan for Travel: Pros and Cons
Often, the money we have for a trip isn’t enough to satisfy our wanderlust or let us do everything on our list. In this case, a travel loan can help. But like any other loan, borrowing money comes with a huge amount of responsibility. So, you should be careful when you get a travel loan, especially one that is based on your credit card.
Here are the pros and cons of getting a loan to pay for your vacation:
- More time to pay back
When you get a personal travel loan, the length of time you have to pay it back is usually longer and more flexible. It depends on your needs. You can choose how much you can pay back each month.
- Easy approvals
When you go to a bank for a personal loan for travel, the procedure is fairly simple. You only have to give them a few important details. You can also fill out the application online from the ease of your own home. Once your loan has been approved, the bank will put the money into your account within a week.
- Higher sum to pay
Your monthly payments will increase because you need to pay the loan’s principal plus interest.
- It may not be possible to get the best loan terms
Your chances of getting the best loan rates from a lender decrease if you do not have a good credit score. Also, if the loan is based on your credit card, you might have to give up all the perks you get from your credit card company.
How to Apply for a Personal Loan for Travel?
The process of getting a travel loan is very easy. Most banks now let people apply for personal loans online.
To get a travel loan, all you have to do is go to the lender’s website and fill out a form with your personal information. You can also send your documents online and get an answer right away. Or, you could go to the lender’s branch or office and talk to a worker there about getting a personal loan for travel.
A trip for a holiday needs a lot of planning and research. Your expenses may exceed lakhs of rupees, even with careful budgeting. Flights, hotels, transportation, food, insurance, phone calls, and visa applications may all add up quickly.
If you don’t have the cash on hand in your savings account, a personal loan for travel can help you cover these expenses. The loan can also be paid back in EMIs over 60 months.
Check out similar blogs on Piramal Finance for more information about the types of personal loans. You may also take a look at the products and services they offer.