Travel Loans – All You Need to Know

Economic growth, rising incomes, and a generational shift in financial habits and attitudes have resulted in a boom in the travel and tourism industry. Numerous people, young and old, are showing an increasing interest in travelling their country and even the world. A number of factors are at play – media influence, access to budgeted accommodation or an increased fascination for different cultures. However, travelling anywhere can prove to be quite expensive, as the expenses incurred are, of course, not only limited to the journey. It also includes accommodation, food, transport in the place you’re visiting and other expenses like fees in tourist attractions. These daunting costs often dissuade people who wish to travel, but there is no need to give up your dreams of experiencing the beauty and learning about the culture of another place just because your bank balance is too low at the moment. You can always take a travel loan if you find yourself low on cash but wish to explore the world.

What are travel loans?

A travel loan is a personal loan, usually unsecured, designed exclusively for travel. You can deploy it to travel within your country or abroad, for personal or business purposes. These loans cover not only the ticket expenses but everything from your journey to the little things you buy at your destination. Air or train tickets, local transport, accommodation, food, sightseeing expenses and even souvenirs can be purchased using a travel loan, as there are no particular restrictions on its use, except that it needs to be used when you travel.

Interest rates

There are now many options available to choose from when it comes to personal loans for travel, making a comparison of interest rates possible. It is always advisable to do your research before choosing a particular lender to take a loan from. Other aspects to keep in mind include the processing fee, prepayment charges and offers provided. The interest rates, as well as all these finer points of various loan providers, should be compared before taking the loan.

Why are travel loans surging in popularity?

Many people, both young as well as old, are turning towards travel loans to indulge in their wish to see the world (or even just their country). This is partly because of the easy availability of these loans and the general rise in awareness about them, and partly due to the various benefits they offer.

  1. Minimum documentation

Since a travel loan is unsecured, there aren’t too documents required. Proofs of your identity, employment and address are typically adequate to sanction a personal loan for travel. You can even apply for instant cash loans online through services like EarlySalary, making it easy to avail a travel loan from the comfort of your home by uploading your documents online.

  1. High loan amounts

While EarlySalary allows you to take out an instant loan for up to Rs 2 lakhs, you can borrow higher amounts if you enjoy good credibility and history as a borrower, at nominal interest rates. This will help cover your all your travel-related expenses, and you have complete control on the money, meaning you can decide exactly where you wish to spend it.

  1. Instant approval

Online lenders like EarlySalary approve travel loans instantly, and the amount is transferred to your account as a lump sum within 24 hours of the submission of your application. This is a significant advantage with such portals since many travel plans made at the last minute are at risk of falling through because of a lack of funds.

  1. Flexible repayment options

Online repayment of travel loans is possible through apps, which makes it a fairly hassle-free process. You can also often set up automatic repayments, meaning you don’t need to remember to make the payment every time. The tenure of the loan can be chosen according to your financial ability and comfort, with online EMI calculators helping you decide on a suitable loan duration.

  1. No collateral

An unsecured loan implies that you will not be asked for a guarantor or collateral against the loan you take. This ensures that there is no fear or undue stress of your belongings getting repossessed if the amount is not repaid, but the transparency of the process ensures timely payment of the EMI.

Although there are many advantages to travel loans, there is a need to be cautious while applying for one. There are several aspects you’ll need to consider. If your income is on the lower side, you’re better off going somewhere less expensive or reconsidering your budget. You also need to ensure that the loan amount you’re taking is adequate for your travel expenses, but not much more than necessary. Making a comprehensive budget of your trip is a must, along with a look at your available funds so that a loan of the appropriate amount can be taken. All in all, don’t let a lack of funds dampen your dreams of travel, but good planning is ideal before you get yourself a travel loan.

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