Travelling makes your life better in several ways. Travel is nourishment for your body, mind and soul.
It is a desired activity, but with the increasing cost of living and inflation rate, it becomes hard to balance your finances and take out money for travelling.
Due to a cash crunch, you often compromise on postponing or cancelling a travel plan. The solution to this problem is a travel loan. Let us discuss the features, benefits and eligibility criteria of a travel loan to know why it is a good idea.
What is a travel loan?
A personal loan for financing a vacation or travel is being known as a travel loan. If you are planning to go out on vacation, you can opt for a personal loan for travel to fund your travel expenses.
What is Travel Loan Eligibility?
Since travel loan is an extension of a personal loan, the eligibility criteria are similar to the basic eligibility criteria required for the latter. The common eligibility criteria for a travel loan are listed below-
Age is the first criteria for applying for any personal loan. You must be between 23-55 years to apply for a travel loan. The age criteria may vary from one lender to another.
You should have a monthly income enough to avail a personal loan for travel and repay it timely. The quantum of the loan amount you can avail depends on your financial capacity. You should be working for an MNC, private or a public limited company.
High CIBIL score
You need a high CIBIL score for a personal travel loan. Your credit rating is the first factor in deciding whether your loan application will get approved. If you have been paying your credit card bills and loan instalments timely, you have a good credit report. Anything around 750+ is a great score to enjoy quick approvals at a lower rate.
Documents required for a personal travel loan
The exact documents required by lenders may vary from one to another. But the basic documents required by all the lending institutions for travel loans are-
- KYC documents
- Employee ID Card
- Last 2 months’ Salary Slips
- Salaried bank account statement for the last 3 months
5 benefits of a personal travel loan
All personal loans are unsecured loans, and you do not need any collateral or security to avail them. A travel loan is also an unsecured personal loan. You are not required to mortgage any legal asset as a security.
The sole purpose of applying for a travel loan is to get instant funds when you plan a vacation with your family. You can avail a personal loan for travel right before you plan a trip or even after you have done the planning. It is one of the major benefits of a travel loan that you get the loan money disbursed into your bank account instantly.
A travel loan is a hassle-free loan as the documentation process is dead easy. The loan process is simple and effortless to access for customers. Pre-approved customers do not need any documentation. You can also apply online and get your offer within a few hours.
Flexible Loan Tenor
Travel loan comes with a flexible loan tenor. The loan tenor of a travel loan generally ranges from 12 months to 36 months.
The cost of using a credit card is more as compared to a travel loan. A travel loan is an excellent way to avoid the high interest rates which you would have to pay if you were using a credit card.
Leading lenders can let you get up to Rs.25 lakh; hence, a travel loan is always a good idea for financing your vacation.
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