Each of us has, at some point in time, postponed travel plans for one reason or another. While there can be genuine reasons like busy job schedules and health problems, the most hurting reason can be lack of funds. However, with the easy availability of instant personal loans through reputed NBFCs and online lending institutions, planning or managing your travel expenses has become so much easier.
The best part is that personal loans do not come with end-use restrictions. So, if you are taking a personal loan for travel, you can utilize it for all travel-related purposes without being answerable to your lender. Booking tickets for an airline or train, booking a hotel room, managing food, or even shopping at your travel destination can all be done with a personal loan for travel.
Let’s understand more about personal loans.
Know About Personal Loans
A personal loan is an unsecured form of finance you obtain from a bank, online lender, or credit union and repay over an amount of time, with fixed monthly payments or installments. They can be a viable alternative for non-discretionary costs like travel, debt consolidation, etc. However, personal loans are unsecured, which means any security doesn’t support them. Your debt-to-income ratio, credit score, credit history, and free cash flow are among the considerations that lenders evaluate when determining whether or not to approve a personal loan.
Why Do People Prefer Personal Loans?
Here are some of the reasons why personal loans are popular:
- Convenient Eligibility Criteria
Many lenders have eligibility requirements for you to fulfill before approving a loan application. Still, if you are a salaried professional with a good credit score and a decent monthly income, you should have no trouble getting a quick personal loan.
- Loan Amount
A personal loan for travel, also known as a travel loan, can cover the cost of your travel arrangements, lodging, meals, excursions, and sightseeing. The travel loan can be used however and wherever you choose. You can go locally, internationally, or through a travel loan.
- Flexibility in Repayment Options
You can select a suitable repayment tenure that works best for you. Lower installments with significant interest payments result from longer repayment terms. Find a loan term that will provide you with enough money at the end to cover your monthly costs.
- Minimum Documentation
People also choose travel loans since they require less paperwork. A travel loan may be obtained with just a few papers, such as identification, residency, and proof of income.
- Instant Approval and Disbursal
Quick personal loans are available for both scheduled and impromptu trips. Within a few minutes, your loan can be approved, and the funds can be transferred to your account.
Steps to Apply for a Personal Loan
Personal loan applications are processed quickly to suit applicants’ needs online. Use these procedures to obtain one quickly:
- Eligibility Criteria
- The minimum age to qualify is 21, and you can’t be older than 60 when the loan expires.
- You need to be a citizen of India.
- You must have the required documents and the properly completed and signed application.
- Interest Rates and Other Fees
Depending on the borrower’s reputation, the loan amount and tenure, and other considerations, lenders provide a range of interest rates. For a personal loan, there is a processing charge in addition to interest rates. You can visit your lender’s website’s interest rates section for further information.
- EMI Calculation
The monthly installment for the loan can be calculated using EMI calculators. The overall loan amount, interest rate, and tenure all factor into this estimate. For fast calculations, you can utilize a personal loan EMI calculator.
- Documents Required for Approval
- 1. Filled personal loan application form.
- 2. Age verification (PAN card, passport, or certificate from the government).
- 3. Identity documentation (passport, driver’s license, PAN card, or voter ID card).
- Address verification (EB bill, phone bill, passport, ration card, driver’s license, rental agreement, bank statement, or passbook).
- Three months’ salary slips or Form 16.
- Six-month bank statement.
- Income Tax returns.
- Complete the Application
A personal loan application can be made offline or online. Drop by the office of the preferred lender for advice on the best solution for your needs. Alternatively, you can use the website to submit an application and receive an immediate funding decision.
A travel loan’s purpose is to give you the freedom and power to enjoy your trip with the money you need. In addition, it can pay for expenses like hotel or airline bookings, meals, drinks, and souvenir purchases, among others. To prepare for your trip, plan it out, choose your dates, and select your location. If you have a general concept of your travel budget, choosing a vacation loan that meets your needs will be simple. Apply for a fast personal loan today by following the steps listed above.