Travelling makes your life better in several ways. But with the increasing cost of living and inflation rate, it becomes hard to balance your finances and take out money for travelling. Due to a cash crunch, you often compromise on postponing or cancelling your dream vacation. The solution to this problem is a travel loan.
A personal loan for financing a vacation is being known as a travel loan. If you are planning your dream vacation, you can opt for a personal loan for travel to fund your travel expenses. Read on to know all about a travel loan and the benefits of availing it for an ideal vacation!
Travel Loan Eligibility
Since travel loan is an extension of personal loan, the eligibility criteria are like the personal loan eligibility criteria. Following are the common eligibility criteria for a travel loan:
You must be at least 23 years old to apply for a travel loan. Yet, the age criteria may vary from one lender to another.
● Financial Capability
You should have a monthly income enough to avail a personal loan for travel and repay it timely. The loan amount you can avail depends on your repayment capacity.
● High CIBIL Score
You need a high CIBIL score for a personal travel loan. Your credit rating is the first factor in deciding whether your loan application will get approved.
Reasons to Avail a Travel Loan
1. Instant Funds
The sole purpose of applying for a travel loan is to get instant funds when you plan a vacation with your family. You can avail a personal loan for travel right before you plan a trip or even after you have done the planning.
A travel loan is a hassle-free loan as the documentation process is very easy. Pre-approved customers do not need any documentation. You can also apply online and get your offer within a few hours. You can calculate your loan eligibility and EMI online. You can use loan calculator available online for EMI calculation.
3. Collateral Free
All personal loans are unsecured loans, and you do not need any collateral security to avail them. A travel loan is also an unsecured personal loan. You are not required to mortgage any legal asset as a security.
4. Flexible Mode of Fund
The flexibility in the mode of the fund is one of the benefits of travel loan. You get loan amount instantly in your bank account on approval of your travel loan application. You can withdraw the amount and pay in cash, draw a cheque or transfer money online for making payments.
5. Repayment Options
Travel loan offers many repayment options. You can repay the loan in equated monthly instalments through post-dated cheques, electronic clearance service (ECS) scheme and many other options.
6. Flexible Loan Tenor
Travel loan comes with a flexible loan tenor. The loan tenor of a travel loan generally ranges up to 60 months.
7. Accessible Cash at all Times
When you apply for a travel loan, you do not need to carry extra cash with you while you are on vacation. You have access to your loan amount at all times. You can withdraw your money from anywhere at any time.
A travel loan comes with both advantages and disadvantages. Travel loan interest rates are usually high, and the loan amount that you can avail is not very high.
In spite of a few drawbacks, a travel loan is always a good idea for financing your dream vacation.
Bajaj Finserv brings to you pre-approved offers on personal loans, home loans and many more. It is to simplify the loan procedures to make it less time-consuming.
You can share your basic details such as your name and mobile number to unlock your customized pre-approved loan offers right away.