How a Personal Loan can Fund Your Summer Vacation
Unlike the past, a holiday is not an unachievable luxury anymore. Just like buying a home or a car, you can take a Personal Loan for travel to finance the summer vacation with your family that you’ve been planning for quite some time. Whether you’re treating your family to a lazy holiday, or are looking to satiate the wanderlust in you, opting for a Personal Loan is the most convenient option you can find right now to fund your travel plans.
Why should I take a Personal Loan for vacations?
For starters, Personal Loans are extremely easy to avail and rarely require any form of collateral. If you meet the eligibility criteria set by the lending institutions and have the appropriate documentation in place, there is a definite chance your application will get an approval. There are certainly a lot of attributes that emphasise the usefulness of a Personal Loan for a vacation. Here are a few of them.
- Quick processing: Generally, holiday plans in Indian households tend to materialise out of the blue. Imagine you have some very close guests home who pitch the idea of a dreamy holiday far away from the hustle and bustle of the city and deep down inside, you know that you’re desperately in need of a break from the monotony of your life. Instead of being disheartened by thinking that you might not have the sufficient funds, you can simply opt for a Personal Loan.
- Fits your budget: One advantage of choosing a Personal Loan for a summer vacation in India or abroad is that the EMIs follow a fixed timeline that is decided before the loan is sanctioned. This period could range anywhere between 1-5 years. This means that you can comfortably chalk out a budget that lets you plan your finances without much trouble.
Now that you know the benefits of using Personal Loans for travelling, here are a few of the travel itineraries that lending institutions fund.
Personal Loan for Overseas Travel
A vacation loan is certainly a great option to assist you on your overseas travel, whether you are visiting the beautiful countryside of Sicily or exploring the wild, untamed rainforests of South America. If such an expedition is on your mind and you’re looking for financial reinforcements, you can opt a Personal Loan from lenders like Bajaj Finserv, who offer loans of up to Rs.25 lakh with various features like instant approvals and part prepayment facility.
Personal Loan for Vacation in India
Doesn’t the idea of touring the far corners of India appeal to you? Whether it’s trekking through the magical Himalayan foot-hills, going on a guided tour of the majestic city of Jaipur or chilling on a cruise to the Andamans, vacation loans are your best source of money.
Things to keep in Mind While Applying for a Vacation Loan
While using Personal Loans to fund your travel is a good option, you also must be aware of the dos and don’ts so that you don’t overburden your finances.
What to do
- Set a budget
Yes. Setting a budget is the first and most essential step you can take. Without a budget, there’s a high chance that you may spend beyond your means and end up regretting your decision to take the trip altogether. So, always plan accordingly and decide on the amount you want to take before you drop in your application.
- Keep a check on the interest rates
It is a known fact that Personal Loans come bearing high interest rates than other types of loans. However, you need to keep a track of the interest rate trends so that you can sketch out how much you are going to pay during the duration of the loan. You should also be wary of loans with added benefits, as they may come with much higher interest rates.
Look for Flexible Repayment Schedule
Always look for loans that come with flexible repayment schedules. For instance, if you’re going for an unsecured loan, look out for any penalties in case you decide to foreclose or extend your loan period. Choose the one with the best terms and conditions.
- What not to do
In your pursuit to get the travel loan you are looking for, you must certainly avoid making these mistakes as they may cost you big.
- Never borrow too much
It is of no doubt that you will have a splendid, luxurious experience if you have more money to spend. But refrain from falling under the temptation and borrowing more than you can handle because doing so may put your finances in jeopardy.
- Repayment tenure
Try not to extend your repayment tenure as it may increase the interest rate on your loan. Making such a move can also have an adverse effect on your overall credit score. On the other hand, if you shorten your repayment tenure, you’ll save up on interest costs and can look forward to affording another loan in the future.
How do I Apply for a Travel Loan?
Availing of a travel loan is fairly simple as all the banks and NBFCs follow a similar process wherein you have to submit a completely filled form to the respective institutions along with the documentation. There are several financiers who also allow you to apply online. For instance, lenders like Bajaj Finserv encourage you to apply travel loan online while offering benefits such as low interest rates and much more.
There you have it. That’s everything you’ll ever need to know about availing of a Personal Loan to fund your summer vacations. But before you actually go through with the process, you need to evaluate your financial standing and plan the trip accordingly so that you don’t end up in a sticky situation wherein the loan amount becomes too hard for you to handle.