Summer holidays are around the corner, but is a cash crunch keeping you from planning a family vacation? Here’s how a travel loan can help you finance your holiday without putting a dent in your savings.
Travel loans are soon becoming a preferred financing option for families and couples. Personal Loans meant for funding your travel expenses, these loans are easy to apply for and repay in convenient EMIs (monthly instalments). The Personal Loan interest rate for these varies from lender to lender and range between 11.5% to 24% p.a. So, it is advisable to inquire with multiple lenders to get the loan at the best rates.
What Are The Benefits Of Taking A Personal Loan For Travel?
Travel loans are available instantly and are approved within 5 minutes of the submission of the loan application. Once the loan application is approved, the money is disbursed within 72 hours to your bank account. Hence, you do not have to wait too long for the money to get credited to you.
The best thing about Personal Loans for travel is that they do not require any collateral to be pledged against the loan amount. You can repay the loan in easy instalments via EMIs, which include your principal amount as well as the interest. Since the instalment that you need to pay each month is fixed, you can plan your monthly budget without any stress or hassle.
Why Is Using A Credit Card For Travel More Expensive?
Some people are used to swiping their credit cards for their travel expenses. Even though credit cards offer interest-free periods for a certain number of days, in case you are unable to pay within that period, credit card companies charge a very high rate of interest on the amount due. Some credit card companies charge as high as 2.99% per month, which can soon become expensive and unaffordable. Also, you cannot use your credit card for paying hefty travel expenses for the whole family, unless you have a very good credit limit.
Hence, Personal Loans are a better and cheaper option when you are looking at financing your vacation.
What To Keep In Mind When Taking A Travel Loan?
When you take a Personal Loan for travel, keep in mind the extra charges and processing fees for your loan, if any. Also make sure your Personal Loan interest rates suit your pocket. Calculate your EMIs and choose a tenure that you are comfortable with in order to be able to repay the loan conveniently. Also choose a lender who offers you hassle-free online applications and allows for flexibility when it comes to repayment, prepayment and foreclosure of your loan. This ensures that if you can pay back your loan earlier than the chosen tenure if and when you get access to additional funds, via a bonus at work or additional income, without charging you excessive penalties for foreclosure. Lastly keep your eligibility criteria in mind when it comes to taking a travel loan and check if you check all the boxes before you apply. This ensures that your loan application has fewer chances of being rejected, and your credit score doesn’t take a hit.
A family summer holiday is an important break for you and your family, which allows you to not only get rejuvenated, but also spend quality time together. For your convenience, Bajaj Finserv offers easy and affordable Personal Loans for travel. Enjoy the best Personal Loan interest rates with easy approvals, online application, quick disbursal of funds and loans up to Rs.25 lakhs.