Going on a vacation helps us relax and break away from life’s everyday monotonies. It also helps you connect with family and friends and spend some quality time together. However, travelling needs funds for tickets, activities, accommodation, etc. Those who have sufficient funds can easily plan their itinerary. Others can apply for the best Personal Loan online to get instant funds in their account.
Personal Loans for Travel, popularly known as travel loans or holiday loans, are specially designed for travelling purposes. Whether you travel for fun, relaxation, adventure, business, or necessity, several Non-Banking Financial Companies (NBFCs) and online lending institutions like Clix Capital offer these loans for travel under their specific category.
Let's learn more about travel loans and the benefits of taking them during the vacation season.
Top Reasons to Take a Travel Loan
Many take a travel loan to cover the expenses of their international trip. A travel loan helps fund the trip without draining the borrower's savings account or breaking their FDs. A Personal Loan for travel is the best funding option to pay for travel tickets, sightseeing expenses, hotel bookings, visa costs, adventure activities, shopping, and other miscellaneous expenses. These are the most effective solutions to support vacations easily.
Know the reasons why people take holiday loans.
- To take a foreign vacation they have been dreaming of for long
- To go on a family trip and spend quality time at their favourite destination
- To celebrate special occasions in an exotic place and create memories
- To stick to a travel plan without straining the budget
- To fund a spontaneous vacation plan without enough savings
- To see all of India
If you’re short of funds, but do not wish to miss out on the next holiday, you can go for a travel loan and fly without any financial worries.
Benefits of Taking a Personal Loan for Travel
Below are a few benefits of taking a travel loan during the vacation season:
- Use the Funds for Any Purpose
An individual needs to cover different costs while planning for a vacation and during the trip. These include flight tickets, hotel accommodation, transportation costs, sightseeing, eating, adventure sports, shopping, etc. A sudden emergency may also arise during the trip, such as illness, injury, baggage loss, etc. By taking the best Personal Loan online, you can handle all these costs without hassles.
Travel loans are multi-purpose loans without any limitations on their end-use. Lending institutions and NBFCs never ask how the borrowers plan to use the loan while approving their applications.
- Repay the Loan in Easy EMIs The borrower can repay the loan in equated monthly instalments or EMIs, allowing them to plan their dream vacation without adding a financial burden to their monthly budget. Moreover, they do not need to liquidate their investments or break their savings. They can earn and repay the EMIs each month as convenient to their repayment capacity.
- Choice of Tenure as Suitable to the Borrower’s Repayment Capability
Another benefit of a Personal Loan is its flexible loan terms, allowing borrowers to select a loan tenure according to their repayment capacity. Generally, travel loan tenures range from 12 to 48 months, which the borrower must choose very carefully.
Opting for long-term decreases the EMI size, but the borrower has to pay a higher interest amount on the loan, whereas opting for short-term causes the EMIs to go up but saves the interest cost. So, use an EMI calculator to balance the loan term and EMIs while efficiently ensuring EMI affordability each month.
- No Need to Pledge a Collateral Unlike many other loan types like LAP and two-wheeler loans, the best Personal Loans online are collateral-free. They do not require any guarantor or security for approval. In other words, the borrowers do not need to put an asset at stake to borrow a travel loan. Those who meet the lending institution’s eligibility conditions and have a decent credit score of 630 or above can apply for a travel loan online and instantly receive it in their account.
- Easy Eligibility and Minimal Documentation
Personal Loans entail minimal documentation and simpler eligibility conditions than other loans. Although the requirements vary between lending institutions, applicants often must fulfil monthly income, age, employment, and credit score requirements. Lending institutions provide loans based on the applicant's credit profile.
The documentation process is minimal and effortless. The required documents include the application form, address, identity, and income proof.
- Quick Access to Finances The best Personal Loans online give quick access to finances due to instant approval and fast disbursal. Since these loans are collateral-free and require minimal documentation, lending institutions do not take much time to verify the details and disburse the loans, meaning borrowers can start planning for their dream vacation immediately.
- Lower Interest Rates and Nominal Processing Fees Interest rates are extremely important when applying for a Personal Loan. Although the interest rates for unsecured loans are higher than secured ones, they are still less than other unsecured financing options like credit cards. Many loan offers come with nominal processing charges, making Personal Loans affordable and easy on the pocket.
Things to Consider While Financing a Vacation with a Travel Loan
Here are a few things one must consider while financing a vacation with a travel loan.
- Even though a travel loan offers easy finance, one must choose a holiday destination within budget.
- Plan the itinerary in advance to save on travel costs.
- Create a travel budget and spend accordingly.
- Keep expenses in check and avoid overspending while shopping and enjoying the trip.
- Use a Personal Loan EMI calculator to select a loan term with easily affordable EMIs.
So, if a vacation is on your mind, leave all financial worries to a travel loan and plan with a free mind. Prefer to apply with an established & reliable lending institution like Clix Capital to get the best Personal Loan online with an ample loan amount, flexible repayment tenure, and competitive interest rates. Moreover, online Personal Loans are instantly approved, and funds are disbursed to the borrower's account quickly. So, wait no more, apply for an instant travel loan today!