Availing a loan is a great way to fund your dream holiday with little to no financial distress. A travel loan or a vacation loan is essentially a personal loan that you can obtain without providing any collateral. You can easily avail personal loans online from the web portals of most banks and financial institutions with minimal documentation and no trouble at all.
If the idea of availing personal loans online to fund your travels sounds intriguing to you, here are 9 things you need to know about travel loans in India.
A travel loan is an unsecured borrowing
A major advantage that a vacation loan has over other types of borrowings is that it is completely unsecured. This effectively means that you don’t have to pledge any of your property as collateral for the loan. In addition to that, most travel loans also do not require you to produce a guarantor for availing the loan. On Finserv MARKETS, you can obtain a travel loan with zero collateral almost instantly.
Travel loans can be obtained online
Unlike most other loans, you don’t have to visit the branch of any bank or financial institution or fill out applications manually. You can obtain all the necessary details and even apply for personal loans online from the comfort of your own home. All that you need to get started is a computer with an internet connection. Besides being highly convenient, the online application process also saves you a lot of time and energy.
They can cover a variety of expenses
Contrary to popular opinion, a vacation loan is a very versatile form of borrowing that covers more than just the cost of your tickets. It can also be used to cover a host of other expenses since there are absolutely no limitations in place regarding how you can use that loan. You can use it to meet the costs of accommodation, pay your sightseeing expenses, take care of the food and beverage costs, and even for shopping while you’re away on vacation.
There’s a cap on the amount you can borrow
Being an unsecured borrowing, there’s a maximum limit on the amount of travel loan that you can borrow. The limit is determined based on your monthly earnings and a number of other factors like your credit history and the nature of your employment. On Finserv MARKETS, you can avail personal loans online up to Rs. 25 lakhs, making it easy for you to fund national and international vacations with the money borrowed.
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Repayment options are often flexible
With a travel loan, you can enjoy repayment options that are flexible and convenient. The entire choice of the tenure of repayment is generally up to you to make. You can choose to repay your vacation loan in Equated Monthly Installments (EMIs) over a period of 12 months to 60 months if you avail a vacation loan on Finserv MARKETS. And if you ever feel like closing off the loan before the end of its tenure, you can do so by either making a pre-payment or a part payment.
Applying for travel loans is a simple process
Since you can make an application for personal loans online, the entire process is made simpler and more transparent. The entire procedure from loan application to loan disbursal is paperless and can be monitored and tracked online at any point in time. Even the minimal documentation that you’re required to submit can be uploaded online. On Finserv MARKETS, you can get access to travel loans that are easy to apply for and obtain.
They’re often a better alternative to credit cards
Taking a loan using your credit card may be instant and easy. However, the processing fees and interest rates that banks and financial institutions charge on a credit card loan are considerably higher. A vacation loan, on the other hand, can be obtained just as quickly and with much lower interest rates. Furthermore, you can get a much larger sum of money with a travel loan than you can borrow using your credit card.
There are eligibility criteria in place
An application for a travel loan can be made only if you satisfy the eligibility criteria in place. These requirements may vary from one lender to another. However, in most cases, the eligibility criteria may include some of these elements.
- The applicant has to be a citizen of India.
- The applicant needs to be a salaried individual.
- The age of the applicant must be between the age group specified.
- The applicant should possess the necessary proofs of identity and address.
- The applicant should be employed in either a Multinational Corporation (MNC), a public limited company, or a private limited company.
- The applicant should have an employee ID card and salary slips.
You can repay your loan through multiple modes
Repaying a vacation loan is extremely easy. Repayment can be made electronically via the Electronic Clearance System (ECS) or the National Automated Clearing House (NACH). Alternatively, if you prefer to make payments offline, you can do so by issuing post dated cheques. You can also manually set up a periodic inter-bank transfer by issuing a debit mandate or a standing instruction to your bank.
Now that you know these essential aspects of travel loans, you’re better prepared to make use of this borrowing to fund your travels within the country or abroad. Remember to repay your EMIs on time though, since any delays in repayment could adversely affect your credit scores.
Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.