In today’s time, life is so hectic and stressful that holidays are the much-needed break from our daily schedule to refresh and rejuvenate us. A perfect holiday helps us get charged with positive energy before we get back to the grind. It is no wonder that the travel industry today has been growing at a magnificent pace. The idea of a perfect holiday differs for everyone as travel means different things to different people. While some prefer to go on an adventurous trip, others prefer to relax in a luxurious property with family and friends and there any many who travel because they enjoy site seeing and learning about different places, cultures, cuisines, and people. Each experience is unique and every type of holiday requires planning and budgeting.
Technology and digitalization sure have made planning easier but many shy away from taking the desired holiday due to a paucity of funds. But like all the other luxuries of life, you can now afford your dream holiday without having to worry about funds with the help of personal loans and travel loans dedicated solely for the purpose of travel.
All leading banks and financial institutions in India provide loans for the purpose of travel either as travel loans or as personal loans dedicated exclusively to travel related expenses. Such loans are generally unsecured loans and do not require a collateral but in some cases, though where the loan amount exceeds Rs 2 lakhs the banks may ask for collateral or a guarantor. Depending upon the lending institution and eligibility criteria, travel loans can be used exclusively for domestic travel or international travel or both.
Key features and Benefits of a Travel Loan
- Travel loans are available from Rs. 10,000 and can go up to Rs 25, 00,000. The interest rate on such loans varies from 12% to 21% which makes them a cheaper form of credit than credit cards.
- The application process is very quick and the loan disbursement as per your individual requirements
- The loan repayment schedule is flexible and banks give you the flexibility to choose your EMI, mode, and tenure of payment. The loan repayment tenure can be anywhere between 12 to 60 months.
- Loan prepayment option is also available as per the terms and conditions of the lending institute.
- Minimum Documentation is required at the time of applying for a travel loan. In a majority of the cases, the applicant only needs to submit identity proof, address proof, and passport size photograph.
Eligibility criteria for a Travel Loan
The eligibility criteria for travel loan may vary depending upon the lending institute but broadly the following conditions need to be fulfilled:
- You should be between 21 to 58 years of age.
- You should be a salaried employee, professional or a business person. If you are a business person then the minimum turnover of your business should be Rs. 40 lakhs.
- The minimum monthly salary at the time of applying should be Rs. 20,000.
- You should be in the current employment for a period of 2 years.
- You should be residing in the same place for 1 year prior to applying for the loan.
If eligible, banks will sanction your loan on predetermined terms and conditions almost instantly.
So, go ahead and take your dream holiday without compromising with the help of travel loans. And for all those out there thinking that it is not such a wise idea to take up a loan for holiday, think again. Research shows that experience gives much more happiness than buying things and traveling is one of the most enriching experiences. In today’s stressed life, happiness is the best gift you can give to yourself and your loved ones.