With vacation loans, it is easy to travel in and out of India without having to lose your savings. Lack of funds cannot stop you from exploring the world. The main concern when one is planning a holiday is the budget. And people do not want to spend their savings nor want to lose interest in their long term deposit savings like FD, NSC, etc. Before one plunge on taking a travel loan, it is imperative to be thorough with it.
What is a travel loan?
Personal loans defined for the purpose of financing your holiday in India or abroad are commonly referred to as vacation loans, travel loans or holiday loans. Many banks and financial institutions offer vacation loan schemes. Some of these are:
- Axis Bank Holiday Loan
- Bank of India Star Holiday Loan
- HDFC Bank Travel Finance
- SBI Holiday Savings Account
When and why you should take a travel loan for vacation?
With increasing tourism within and outside the country, people are taking their holidays seriously. Although experts don’t advice to take a loan for funding the holiday, many people are now taking their travel as a priority and are ready to pay a good rate of interest in return as well. One should opt for a holiday loan if:
- You are in a diehard need of a vacation with your friends and family but do not want to delay or postpone it because of the lack of immediate funds.
- You are dicey of spending your hard cash saving on the vacation expenses.
- You are not keen to liquidate all the savings you have to spend on the vacations.
- You earn sufficiently well and are confident of repaying the loan amount and EMI on time.
But the most important thing to note is the fact that one should plan the holiday in terms of transportation fare- be it airlines or railways or hotel bookings etc as per the budget. The first and foremost thing is to decide on the number of funds you would actually require for the vacation. Apart from the basic accommodation and transportation, one must take shopping, local travel, food, entry tickets, and some extra cash for emergency situations into consideration. Once you are sorted with the funds required, you can apply for the travel loan. One should always remember that the money which you are borrowing has to be returned with a good rate of interest and therefore the step of applying the loan should be taken in a way that it doesn’t burden you in the long run.
What are the various options to avail loan for travel and holidays?
Many banks and travel companies have joined hands to offer travel loan packages to their customers. But it is beneficial for the borrower to compare different travel loan deals before making the final decision. LoansJagat is an excellent platform for comparing offing of different banks and financial institutions and compare them in terms of the lowest rate of interest and terms and conditions. There are two popular travel financing options viz.
1. An unsecured loan from banks
Many lenders and banks offer loans to fund vacations. Some of the features of such loans are:
- Loans available for travel within and outside India
- Minimal loan processing fee
- Loans available for a tenor of 3-24 months which is payable in easy EMIs.
- Fast processing
- No need for any security. One can, however, enhance the holiday loan amount eligibility by offering some kind of liquid security like FDRs, NSCs, etc.
- A high rate of interest varying from 14 % to 20 %. This can be negotiated if you have a good credit score.
2. Credit card based EMI loans
This option lets you travel with your credit card and later convert the outstanding funds to credit card EMI loan. Some of the features of this loan are:
- Higher rate of interest varying from 24 % to 36 %
- Less paperwork
- Loans available for a tenor of 3-12 months
- Loan amount eligibility is subject to your credit limit on credit card and also your travel destination.
Alternatives to Travel Loan
As per some experts, taking a loan for travel is not a good habit. One can either save money for their dream destination or open a recurring travel deposit account with a bank to finance your holidays.
Why choose Loan Jagat?
LoansJagat is the ultimate check stop for getting all the information about the travel loans from different lenders. It lets the borrower compare the rate of interest and terms and conditions so that they can choose the most suitable one for themselves. They take care of every minute detail from loan application to loan sanction and disbursal in a bank so that you can plan your holiday without having to think about the funds again. Apply for holiday online India and pack your bags for the dream destination.