Things to know about travel loans in India
Travelling to exotic locations and different countries has been a dream for many in India. Given the instability of the Indian economy and moderate per capita income, the time for fulfilling this dream might get delayed for years. However, apart from the long term savings option, there is another alternative to look out for.
Travel loans can make your travelling dreams come true by giving you instant capital for your journey. With the help of a travel loan, you will be able to fulfil your dream without delay.
However, there are certain things you should get cleared about travel loans before you opt for one.
A Form Of Unsecured Loan
The first thing to know about a travel loan is that it is an unsecured loan. What this implies is that you do not need collateral to get this loan. Your assets, thus, will not be put into the stake for a travel loan.
It can be approved just by your income details and on the basis of the same, a prescribed credit limit will be assigned to you.
Online Loan Facility
Now you can easily avail a travel loan online. All you will have to do is to log in to a bank or any other financial institution’s portal and fill an application form. You can also download the app of the said institution and proceed from there.
The advantage of the online travel loan facility is that you can get your loan approved instantly. That too without visiting any bank.
If you are looking for a vacation loan apply here and get your deal done without much hassle.
The documentation required for getting a travel loan, especially through the online process, is quite minimalistic. You will not be needed to entangle yourself in different types of lengthy paperwork. All you will have to do is to provide your address proof, identity proof and income proof.
Once your documentation process is verified, your application for a travel loan will be sanctioned. It is important to keep the necessary documents at hand while applying for this loan. For KYC verification, the financial institution will be sending a representative or agent at your doorstep.
With the doorstep KYC verification your travel loan can be approved without hassle.
Thus, the overall effectiveness of the process becomes much smoother through the online medium.
More Than Travel Expense
A misconception in people regarding travel loans is that they only cover travelling expenses such as plane tickets. However, this is not at all true. A travel loan can also be used for the overall travelling expenses ranging from travelling tickets to accommodation and food expenses.
Hence, with a travel loan, you will be able to savour complete fun out of your journey without worrying about the immediate expenses from your own pocket.
Better Than Credit Cards
It might seem that the multipurpose use of a credit card would be more preferable for travelling than getting a travel loan. There is a catch though.
Firstly, the interest rates charged by credit cards are higher than that of a travel loan.
Secondly, credit cards are not ideal for travelling due to their credit limit.
Thirdly, you will have to go through the tiring process of activating your credit card for international usage.
All these disadvantages seem to get vanished with a travel loan. It is specifically designed to keep all the aspects of travelling whether domestically or internationally.
Compare And Select
It is always better to do a thorough comparison between different lending institutions before opting for a travel loan. This way you can save up on a lot of extra expenses. It should be kept in mind that while some lending institutions might give you a higher credit limit but also with higher interest rates and vice versa.
So it is important to take a look at the interest rates of the different institutions and your target limit. Go for the one where your expenses can be covered without needing to pay higher interest.
Also, try to cover up your loan as early as possible. The longer you set the tenure lower will be the EMI but with the higher interest amount. On the other hand, if you pay back your travel loan in a shorter period of time then the EMI will be higher but the interest amount to be paid will get significantly reduced.
Maintain A Good Credit Score
A good credit score increases your chance of getting an instant travel loan. Also, your credit limit will get extended if you have a good credit score.
Generally, a credit score above 700 is considered sufficient for getting a travel loan approved. Make your loan repayments in time and both your credit score and credit limit will increase further.
With these points in mind, you are good to go for a travel loan. You can get a loan of up to Rs 25 lakh if your credit score is good enough. Once you have made a correct decision regarding a travel loan, both your journey and financial obligation will be easily managed.