The strong growth of the Indian economy in the last decade has led to increased spending capacity. With better per capita income and easy financing options available, many people wish to fulfil their dreams of travelling the world.
To get that extra push financially, you have a ready option of travel loans. These are personal loans designed exclusively for travel purposes.
This loan can help you travel domestically or internationally for business or personal purposes. To get you more acquainted with the concept of travel loans, here are nine things you must know:
1. Expenses covered
Many borrowers think that travel loans will cover ticket expenses. But, you can use a travel loan to pay for your tickets, accommodation, food, excursions, or even sightseeing. There are no restrictions on where you use the travel loan. You use the travel loan to travel domestically or internationally or both.
2. Interest rates and the finer details
With so many options available, it is prerogative to make a comparison of interest rates. Finer details like the minimum processing fee, no prepayment charges, and pre-approved offers must be kept in mind while selecting the best option for the loan.
3. Instant loan option
You can get instant travel loans for planned or immediate travel. Your loan will be approved within 5 minutes, and the money will be transferred in less than 24 hours.
4. Better alternative to credit cards
Credit cards are great, but they have limitations, like high processing fees, high-interest rates, and lower credit limits. On, travel loans are similar to credit cards but with cheaper interest rates. A travel loan also reduces the hassle of activating a credit card for international travel.
Additional read: 5 reasons to apply for a personal loan from Bajaj Finance
5. Minimum documentation
Another reason people prefer a travel loan is that it has minimal documentation. A travel loan can be availed of with just a few documents like proof of identity, address, and employment.
One more mistake that applicants often make is not keeping all their documents handy. Here is a handy checklist of all the documents that you need while applying for a personal loan.
6. Loan amount and duration
You can get up to Rs. 40 lakh as a travel loan with up to 96 months of repayment options. However, it is essential to know the travel expenses and the personal loan amount to be borrowed. Also, it is preferable to keep the loan repayment duration shorter so that it does not burden your future investment options.
7. Unsecured loans with no guarantor
No security or collateral is needed for a travel loan. Very rarely, you might get asked for collateral or a guarantor if the loan amount is very high.
8. Online loan application
You can apply for a loan online without you having to visit any branch. Now, this is not only convenient but also less time-consuming. Online applications are preferred over offline applications.
9. Post-sale service and transparency
Always opt for a lender who will provide you with the best post-sales customer service, including 24/7 assistance for clarifying all your doubts and transparency regarding every penny deducted from your loan application and account.
Travelling is a luxury everyone deserves after months of hard work in their jobs. If you feel it is the right time to explore the world, apply for a personal loan for travel today.
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