If traveling is your passion, what stops you? Finances, it’s no more a concern, choose a destination, book your tickets now! A travel loan is there to cater to your financial needs.
A travel loan is financial assistance offered to passionate travelers who wish to explore new places. Don’t wait until your bank has a sufficient balance because that never happens. Expenses can never be under control or bank balance is never sufficient. It might be a possibility that when you have a balance, your travel mood is not on. Hence, live your travel goals now, because you want to make it happen now.
Once you apply for a loan, the verification process starts; Post verification of your background, if the loan gets approved, the entire loan amount is disbursed to the account to be used by the borrower at the time of need.
Why take a travel loan?
Some people are passionate travelers. They can’t stay at a place and want to explore places. Sometimes a friend plans a vacation that you don’t wish to give up on or you yourself get some better deals, so you want to plan your trip instantly. To manage such unplanned travels, you need funds to accommodate airfares, lodges, food, and other expenses. Travel loans cater to these sudden financial requirements. It is always safe to have finances for immediate needs with a well-thought repayment plan. International travels require more advance planning of funds since you need to maintain a certain bank balance. Maintaining a bank balance from your monthly income means keeping a constant check on your expenses and cutting down your day to day expenses. In such situations, it is better to look for better loan options and overcome your financial crunch including the EMI against the loan as a part of your expense.
Eligibility for Travel Loan
Eligibility criteria of travel loan online for salaried and self-employed are quite similar. Different banks have different offers for both groups. However, most of the requirements and documents are the same.
Age: An applicant must be 25 years or above in age.
Income: An individual applying for a loan must have a monthly income of 25,000 or more.
Loan amount: Some banks offer a loan up to 25 lakhs. However, the amount differs for different banks.
Employment: 2 years of work tenure with 6 months in the same organization. 3 years in the same business for self-employed.
All the above-mentioned figures are subject to change depending on the terms and conditions of different banks. Choose the best option available in the market that suits you.
Following documents are required to avail a travel loan.
For self-employed applicants
Proof of identity: Voter ID, Passport, Driving license
Proof of residence: Electricity bill, passport, telephone bill, Aadhar card
Bank statements: 3-6 months bank statements
Certificate of income: Income certified by an accountant
Continuity of business document: The document showing the duration of business that will also serve as the employment proof
For salaried applicants
Proof of identity: Voter ID, Passport, Driving license
Proof of residence: Electricity bill, passport, telephone bill, Aadhar card, bank statements
Salary slips: Last 3 months
All the documents have been mentioned above, yet the following is the list of mandatory documents.
- Photo ID proof
- Address proof
- Passport size photo
- Duration of job proof
- Income proof for self-employed
- 6 months bank statement
Features and benefits
Use the amount freely
Travel loans cater to all travel related expenses. You can use the money disbursed in your account anywhere as per your requirement.
You need not to keep any asset as collateral in order to avail this loan. It is an unsecured loan given on the basis of your repayment capacity and monthly income.
Easy repayment and low EMIs
Travel loan offers easy EMIs and repayment options. The applicant can choose the comfortable options available to repay the loan.
Long comfortable duration
The duration of the loan is quite feasible for repayment. The amount borrowed also helps to decide the duration. Usually higher the amount, more is the duration of the loan whereas a small amount can be repaid in a year.
Travel loans get fast approvals. The loan amount gets disbursed once the verification is complete. Applicants can use the amount for travel-related expenses.
Travel loans have low-interest rates but there are other factors that decide the interest rate. Usually, interest rates vary from 11 % to 20%. Choose the offer with the lowest interest rate.
Did you check these points?
Estimate your travel expense
Your travel expense should be calculated before you think of taking a loan. Decide on your destination, estimate the complete budget including local travels, accommodations, food, tickets, etc. Spare some amount apart from the estimated amount for some unplanned expenses. You are ready to apply for the loan now! Don’t keep a big margin between the estimated amount and the loan amount as it would be an unwanted burden on you.
Ensure that you have all the mandatory documents before applying for a loan as it is time-saving.
Before taking the loan, repayment planning is important. You should have monthly expenses estimated to know whether you will be able to pay the monthly EMIs or not.
The duration to repay the loan must be long enough to pay your monthly EMIs comfortably. Don’t make it so short that you are unable to adhere to it.
Terms and conditions
Be clear on the terms and conditions before applying for a loan. There might be some points of prime importance.
Know the break-up of your EMIs in detail since it has various components charged like processing fee, late fee, pre-payment charges, etc. You should not be under any disguise.
Offers are available in the market because there are people to avail it, as a borrower you must explore the offers as per your needs and avail it only if you have a repayment plan set in advance. Live a stress-free life!