If you are planning to go on a world expedition, a travel loan can help you fulfill the financial gaps in your income. You need not wait until your savings are adequate to fund your journey as travel finance.
Whether it is Maldives or Morocco, Rome or Rio de Janeiro, Switzerland or Spain, Turkey or Thailand, travel loans act as the much-needed financial support to set you on course to any part of Earth.
These Travel loans are available from many leading NBFCs and other financial institutions. Also, you don’t have to go through much hassle and paperwork to apply.
Things to do Before You Apply For Travel Loans:
1. Calculate the estimated cost of your trip
Research on the internet or refer to travel books to estimate how much you need to spend to travel to a particular location. Such expenses include sightseeing, transport, and food. Include these with your flight/train tickets, hotel bookings, and other mandatory costs. Lastly, add 10% to 20% with the final amount to stay on the safe side.
Now, you probably have an estimated budget for your trip. This expense will help you precisely determine the amount of your personal loan for travel.
2. Check how much you can contribute
Don’t fund the entirety of your vacation solely with the loan. Check how much you can invest from your savings. However, make sure you have ample funds reserved in case of emergencies.
3. Determine the loan amount, tenor, and EMIs
Assess the loan amount you should apply for and then, calculate the tenor and monthly installments using a personal loan EMI calculator.
Do note that the tenor you opt for will have an impact on your EMIs and cost of the loan (principal + total payable interest). A shorter tenor makes the monthly installments expensive but keeps the cost of loan low. On the other hand, a longer tenor has the opposite effect.
Using an EMI calculator helps you adjust your monthly budget to make sure the EMIs don’t become a burden.
Few of the Features You Get With Travel Loans:
- Quick processing and approval – NBFCs can approve and disburse the loan amount within 24 hours.
- High financing option – You can avail up to Rs.25 lakh and meet almost every expense with convenience.
- Convenient repayment tenors – The repayment periods for travel loans range from 12 to 60 months.
- No collateral required – You don’t have to pledge any asset to avail this travel finance since these loans are unsecured or collateral-free.
Note Some Other Requirements of Travel Loans:
1. Necessary documents
You must submit the following documents to avail a travel loan:
- An employee ID card.
- Bank account statements for the last 3 months.
- Salary slips of the previous 2 months.
- Turnover of the last year audited by a CA.
- Income tax returns of at least the previous year.
In addition to the above, you need to produce your KYC documents such as driving license, passport, Aadhaar, voter ID, and PAN card.
2. Fulfillment of personal loan eligibility criteria
The age requirement for travel loans is between 23 and 55 years. Other two travel loan eligibility criteria are – borrowers must be employed with a regular source of income. Their business should have a vintage of 3 years if they are self-employed.
3. Good credit score
NBFCs prefer customers who have a credit score of at least 750. Around 80% of personal loans approved are of borrowers holding a high credit score according to CIBIL.
You can now avail a travel loan without facing much inconvenience. Financial institutions also offer the option to apply for these loans online.
Lenders such as Bajaj Finserv come with pre-approved offers for their existing customers, which not only simplify the loan availing process but also reduce the time usually consumed. Pre-approved offers are available with unsecured loans (personal loans and business loans), secured loans (home loans), and an array of other financial products and services. You can check your pre-approved offer online by providing a few necessary details.