5 Questions to Ask Yourself Before You Get a Travel Loan
There was a time when going on an exotic cruise with family or friends may have seemed like an unaffordable luxury, but with a Personal Loan you can now make travel a real part of your life. All you need is a plan and a budget! But before you get ready to fill up an application, there are few things to consider before taking out a travel loan.
Am I Financially Secure?
Before you go ahead and get a Personal Loan for travel , ask yourself if you are in a position to avail of a loan. Analyse all your incomes, expenditures, and savings and see if you can manage paying off the EMIs. You should also consider factors like job stability and other debts if you have any. If you think you’re secure enough to indulge in a Personal Loan, start scouring the market for lenders who might offer you some great rates and facilities. You could get a loan from NBFCs like Bajaj Finserv, who offer Personal Loans up to Rs.25 lakhs.
Can I Handle High-Interest Rates?
Interest rates are extremely important with any loan as they determine how much a borrower will spend in the overall scheme of things. The interest rates for Personal Loans in India, tend to be high at an average of 16%. You should decide if you want a loan on fixed rates or variable rates of interest. With a fixed-rate loan, the interest rate remains unchanged during the entire loan tenure, while in the case of a variable-rate loan, the interest rate changes according to the cash rate. Make it a point to research which bank works best for you. For instance, Bajaj Finserv offers Personal Loans at one of the lowest interest rates in the market.
Is My Credit Score Good Enough?
One of the main factors that decides your eligibility for a Personal Loan is your credit score. Banks and other lenders feel more confident providing loans to borrowers with higher credit scores. If you do have a low credit score, you will have to pay off a loan with a higher interest rate or worse, the bank won’t approve your application. So, it is wise to wait for a few months and improve your credit score before you apply for the loan.
Read the blog to know more about credit score.
Should I Opt for Secured or Unsecured Loans?
Another important factor while getting a travel loan is whether you should apply for a secured or an unsecured loan. With a secured loan, you will need to provide some sort of collateral as a guarantee. If you opt for an unsecured loan, you won’t have to put up any collateral, but your interest rate will be much higher. It is, of course, simpler to avail of a secured loan, even if you suffer from a low credit score, as the collateral you offer will make your lenders more confident about lending you the money. You could also opt for a Flexi Loan from Bajaj Finserv.
How Will I Repay the Loan Amount?
The last factor to consider is the duration of your loan. A Personal Loan is relatively easier to repay, as you usually receive small amounts of money. You should be able to repay the amount in full in a year or two unless you want to prolong your tenure. Try paying off your loan quickly, since that will bring down your loan tenure. This will reduce your interest payments, making your loan less expensive.
Find the Right Holiday Finance Plan
Before signing off that loan agreement, make sure you have the best available mode of finance. With the bevy of options present, shopping around for the best holiday finance isn’t that difficult. Hence, find out the present interest rates on loans for holiday in the market, to ensure you sign up for the best deal with a trusted financier. You can consider a Personal Loan for vacations from Bajaj Finserv, which offers additional benefits like instant approvals. You’ll then be able to close your Personal Loan account during the tenure easily and will have access to the benefits that come with it.
Fund Your Itineraries with a Personal Loan
Want to break free from the bustle of the city life by going on a relaxing family vacation? Worry no more! Your vacation dreams can find their wings with an easy-to-get travel loan. And it’s the ideal resort when there are a number of expenses that your personal finances can’t cover in one go.
Flight reservations, premium accommodation, fancy food and shopping en route are just some of the major expenses you will encounter while planning your beloved vacation. And the more the travellers, the higher the expense. Additionally, don’t forget pre-travel expenses while budgeting your trip, including apparel spend, luggage buys, and other travel add-ons.
A Personal Loan can be a real saviour in this sort of situation. What better way to finance your dream vacation than a mode of finance that comes without any collateral requirements? Also, the easy availability makes them the perfect choice for an urgent source of funds. Plus, you can find financiers like Bajaj Finserv, who offer Personal Loans with benefits like instant online approval for up to INR 25 lakhs. This means you can get your vacation underway without having to wait for months while the loan is being approved.
Now that you know all the factors to consider before you take a loan, go ahead and plan your next big adventure.