Yes, getting a personal loan for travel means vacation without worry. This loan is design to meet your financial needs no matter what the purpose. In this, you don’t need to submit any assets. So, the bank can’t seize your property or valuables in case of non-payment. A personal loan sounds like a perfect choice for travel, which can be expensive at times and not everybody has a lump sum amount to pay. So, in situations like these, you can borrow a personal loan for travel. Read this post below to know its benefits.
Advantages of Getting a Personal Loan for Travel
When you borrow a personal loan from a bank or any non-banking financial institution, the following benefits are available to you –
High Loan Amount
In a personal loan, there is a maximum limit of INR 50 or 75 Lakh depending on the lender. So, it means there will be no issue with how expensive your trip is. As there is no collateral, this is a risky loan for the lender. Because if you default, there is no way the bank can receive their money unless they summon you to the court. So, the lender requires you to meet minimum income criteria. If you meet that, the loan will be approved.
Affordable Interest Rate
Well, this depends on your credibility for a personal loan. An applicant who is highly eligible for a loan has the power to negotiate for a lower interest rate. Whereas, if you’re barely meeting the eligibility requirements, the interest rate won’t be in your favour. To make that in your favour, you need to maintain a spotless record of repayment and income which is affordable for EMI repayments. If you’re successful in doing the same, a personal loan for travel will come at an attractive rate of interest.
Easy Repayment Option
You can repay the borrowed amount plus the interest in equated monthly installments. So, even an expensive trip won’t feel so expensive to you as they come in easy EMIs. To compute your EMI, use the online calculator. With this, you can find the possible EMI of your borrowed amount. The repayment of the loan may begin next month from the date of the disbursal. The date of repayment will be mentioned in the documents that you receive from the bank or NBFC. The loan can be repaid via different methods such as ECS, NACH or post-dated cheques. Choose the one you’re comfortable with.
So, there will be no interruptions during your vacation. Book your flights, hotels, etc. using the personal loan and be worry-free about the repayment. As with the above repayment methods, the EMI will be deducted from your account automatically. If you have an account at the bank from which you’re borrowing the loan, activate the standing instructions for easy EMI repayments.
Where to Apply for a Personal Loan for Travel?
You can apply for a loan online or offline by visiting the bank or NBFC website or branch office. It is preferable to apply online. Because in an online application, you don’t have to go to any branch office and the request can be submit online at home. And the documents will be uploaded. So, keep them nearby while applying for a personal loan.
Offline users can go to their nearest branch office and can apply for a loan. Ask the representative about the personal loan interest rate. After telling you about the loan product, he/she will hand out an application. Fill in the same and submit it at the desk along with the required documents. Now, go to your home and wait for the lender’s response.
You’ll be notified about the loan approval or rejection via SMS/email. After getting the confirmation of the loan, the amount will be soon transfer to your account.