Travel loan in India: Five things to remember
The popularity of travel in India has increased a lot in recent years. It is no longer restricted to pilgrimages or the mandatory trip to a relative’s wedding. Leisure travel is a big trend in India today. The country has hundreds of destinations for young people to explore. Party destination Goa has always been a big hit. People looking for peace opt for the serene backwaters of Kerala. Those looking for untouched nature explore the raw beauty of the northeast.
But travelling does not come cheap. If you are in a tight financial situation at the moment, how would you pay for the travel expenses? Simple: take a travel loan.
What is a travel loan?
A travel loan or a vacation loan is basically a personal loan for travel. Banks grant these loans to fund up to 80% of your travel expenses. You can pay for the tickets, insurance, accommodation, etc. with the loan. Lenders such as Bajaj Finserv will also give you a loan for travel.
Five things to keep in mind when choosing a travel loan
1. Check and compare the interest rates: Interest rates for travel loans vary from 11.99% to 24%. Research well and go for a travel loan with a lower rate of interest. This way, you can reduce your costs with the right travel loan.
2. Look out for special discounts: Some lenders offer discounts on travel loans to certain customers. If you meet the preset conditions, you can enjoy discounts on your interest rate. For instance, if you are a teacher, some lenders may give you a 0.25% discount on the interest rates. So, ask your lender if you are eligible for a discount.
3. Note the fine print: The processing fees and other details, like prepayment or foreclosure charges, differ from lender to lender. So, check these details before choosing the lender.
4. Opt for a short repayment tenure: Keep your repayment tenure as short as you can. Most lenders allow you to repay a travel loan in India within one to three years. But shorter repayment tenures help you to save on the interest. A typical loan for travel comes with a fairly high interest rate. So, try to repay the loan as soon as possible.
5. Choose between unsecured and secured travel loans: Most travel loans are unsecured. But some lenders offer secured loans against a collateral. In fact, you can save on interest rates by opting for a partly or fully secured travel loan. Collateral can help reduce the interest costs by 1.5% to 2%.
So, what are you waiting for? From the Himalayan foothills to the pristine beaches of the south, India has plenty of destinations to visit. Do not allow a cash crunch to stop you from exploring. Choose the best vacation loan and get ready for the adventure of your life!