Planning a Eurotrip in your 20’s? A personal loan from a trusted financial institution will see you through. Taking a personal loan for traveling is not new. In fact, many financial institutions offer travel loans, specifically for holidays. In the past 5 years, India has seen the sharpest growth taking personal loans for fulfilling their travel or luxury item needs. In 2018, Indians wanted to travel to Europe more than ever. Over a million applications were filed from India only for short-stay European or “Schengen” visas in 2018, a 17% increase from 2017.
The starting salary for young freshers in India averages at ₹3,47,946 per annum. Depending on whether you visit Eastern or Western Europe, stay with relatives, or book hotels, your travels could be relatively expensive. This may be why Indians find it easier to opt for travel loans and pay them back using EMIs.
Applying for a personal loan is simple. Most financial institutions provide the option to apply for a loan online. A good personal loan provider will speed up the loan process for your convenience. The whole process could take 1–2 business days. The Bajaj Finserv Personal Loans, available on Finserv MARKETS, provide the fastest online loans in India. With minimal documentation, approval in 3 mins, and loan disbursal in 24 hours, your travel plans need not wait.
Once you fill out your employment, financial, and personal details, you can select the loan amount and tenor that you want. For instance, Bajaj Finserv Personal Loans, available on Finserv MARKETS, offer high loan amounts of up to 25 lakhs, and flexible repayment with tenures scaling up to 60 months. This makes it an excellent travel loan option as it is easy for you to fund any last-minute travel changes, delays, or cancellations.
Another critical point of consideration is the rates of interest on the personal loan. The interest rates determines how much additional money one has to pay on top of their loan. Most financial institutions in India offer competitive interest rates ranging between 10–15%. Anywhere between 10–13% is considered a relatively low interest rate. Your lender will also require a minimal processing fee that is 2–3% of the borrowed amount. Bajaj Finserv Personal Loans interest rate starts from 12.99% p.a.
Hidden charges like added interest and loan processing fees can add up. Do note that personal loans in India are not tax-deductible. Hence, taxes may be another additional cost depending on the amount borrowed. Try to choose a lender that, in addition to a low interest rate, promotes transparency in their fee charges. With lender-transparency, you will have a clear idea of the cumulative amount payable to your lender early on.
The best part about personal loans is that they can be paid back in installments with durations of your choosing. Estimated Monthly Installments (EMIs) are a popular way of paying off loans while avoiding the financial burden of paying a lump sum. EMIs are low-cost, hassle-free ways to fund your holiday, but they can become expensive.
It is difficult to negotiate with your financial institution to offer a lower EMI. Paying a large amount of the loan to lower the EMI is also not a financially viable option for most. To help lower EMI’s, you can opt for the Flexi Personal Loan on Finserv MARKETS. With the Hybrid Flexi Personal Loan, you can reduce your EMIs by up to 45%. Meeting your financial obligations each month could not get any easier.
Besides lower EMIs, the Bajaj Finserv Flexi Personal Loan on Finserv MARKETS also has a prepay option. Once a limit is ascribed, you can withdraw money from your loan amount an unlimited amount of times without the hassle of repetitive applications. The flexible and hassle-free features make it an attractive option for youngsters considering an international trip.
In conclusion, taking a travel loan will allow you to travel the world while you’re young. When choosing a personal loan, there are different things to look out for. Many financial institutions accept loan applications online, making the process quick and easy. Providers who offer flexible tenures, have low-interest rates and lower the cost of EMI’s are your best bet at securing a loan you can successfully pay off.