Travelling is something that gives everyone around us peace of mind in these stressful times. Working at the office or working from home, travelling is what excites us to get rid of the daily routine. Travelling not only brings joy and peace of mind but is a way to explore new places and cultures.
However, not everyone can fulfill the dream of their next adventure. That is when a travel loan comes to their rescue. A travel loan can be the right choice for one’s needs as it provides the necessary funding to plan the next trip.
To know more about travel loans and why one needs them, continue reading!
What is a Travel Loan?
A travel loan, commonly known as a personal loan for travel, is a loan that provides the necessary funding to meet travel expenses, including tickets, stays, food, etc.
Today, many financial institutions offer personal loans for travel to make travelling convenient and fun so that no one has to worry about financing their dream holiday.
Why Take a Travel Loan for Your Next Trip?
Taking a short-term personal loan for travelling can help travellers fulfill their next adventure without any hassle and paying money upfront.
Travel loans can offer the following benefits:
1. No End-Use Restriction
A travel loan can be used for any purpose, unlike a two-wheeler loan which can only be used to buy a two-wheeler. It has no end-use restrictions from financial institutions.
It means that travel loans can be used for any purpose, like paying for tickets, hotel stays, food, activities, and even shopping. One can also use the funds to travel internationally as well as domestically. So, travellers have the necessary flexibility, and they do not have to worry about how to use the funds.
2. Easy EMIs
If funds are something that is stopping travellers from planning their next trip, they can opt for travel plans. With travel plans, they do not have to pay the money upfront. They can pay the loan amount in easy EMIs (equated monthly installments) without putting strain on their budget.
In this way, travellers can plan their next adventure easily without breaking their savings and investments and pay easy EMIs monthly.
3. No Collateral Required
Another significant advantage of travel plans is that individuals are not required to provide any collateral or security to avail of the loan. Travellers can get loans based on their income, credit score, and other factors. Moreover, there is no risk of losing the security if they cannot pay the loan amount.
4. Competitive Interest Rates
Competitive interest rate is another reason why a short-term personal loan might be the right choice for one’s next adventure. Though travel loan interest rates are higher than secured loans, they are lower than credit cards. Importantly, if borrowers meet the lender’s eligibility criteria and have a good score and income, they might receive the best deal.
5. Flexible Repayment Tenures
With a travel loan, borrowers have the freedom to select a loan tenure that fits their repayment ability. This flexibility allows them to repay the loan comfortably over a period. Usually, travel loan tenure can go up to 60 months, so the borrower must choose them carefully.
If the borrower chooses long tenure, the EMI will decrease, but the borrower will have to pay higher interest. If the borrower chooses short tenure, the EMI will go up but will save on interest costs. Thus, borrowers must use an EMI calculator to find a suitable tenure before taking a loan.
6. Easy Eligibility Requirements
Personal loans for travel usually have simple eligibility criteria, like credit score, income, and age, making it accessible to a wide range of individuals. As long as travellers meet the criteria, they can be eligible for a personal loan for travel. Moreover, the documents required for the loan are minimal, making the process smooth and hassle-free.
7. Quick Access to a Loan
Timing is crucial when travelling, and personal loans for travel make that possible. Since these loans do not require collateral and the eligibility criteria are easy with minimum documentation requirements, the lenders process the loan quickly. Thus, the loan process becomes fast and instantaneous and within a few hours, the fund is in the borrower’s bank account.
Travel loans can be advantageous for people who love exploring and travelling but may require financial assistance. With easy-to-meet eligibility requirements, quick access to loans, no end-use restrictions, flexible repayments and competitive interest rates, a personal loan for travel can provide the necessary funding required to finance their next adventure.
However, before taking a travel loan, ensure to choose a reliable lender that provides the best deal.