In today’s world of competition, taking a break by traveling can be a great stress buster. For some people, travel is fun, while it’s an adventure for some. We all have a dream destination planned on our bucket list. Taking a personal loan for travelexpenses can make your dream a reality in such a scenario.
In this article, let us look at what a travel loan is and why you should consider getting one.
What is a Travel Loan?
A travel loan is a type of personal loan taken to fulfill your travel needs. It can help cover the expenses such as accommodation, traveling, tickets, food, tour packages, etc. Since personal loans are unsecured, you can avail one without any collateral. Therefore, you can also apply for an instant personal loan using Buddy Loan to meet different financial needs.
Why should you consider taking a personal loan for travel needs?
Banks and NBFIs provide travel loans for domestic and international trips. Here are a few reasons why you should consider taking a loan for travel expenses:
1. You don’t have to spend all your savings on travel.
2. You don’t have to postpone your trip due to a lack of funds.
3. You can use this personal loan as an alternative to using your Fixed Deposits.
Benefits of applying for a personal loan for travel expenses
1. Multi-Purpose: You can take a personal loan to fulfill various financial needs such as vacation plans, wedding expenses, medical emergencies, business expansion, etc.
2. Flexible Tenure: You can choose your repayment tenure, starting from 6 months to 60 months.
3. Instant disbursal: Your loan amount will get disbursed into your bank account within 24 to 48 hours of approval.
4. Zero collateral: Since personal loans are unsecured loans, you need not submit any collateral.
5. Minimum documentation: You have to submit minimum documents such as Aadhar Card, PAN card, and bank statements for KYC verification.
6. Paperless process: There is no need for physical interaction, as the whole process is online. This digital process makes it quick and convenient to access.
Eligibility Criteria
Sl.No
Particulars
Description
1
Nationality
Indian
2
Age
21 to 60
3
Employment Status
Employed or Self-Employed
4
Minimum Income
INR 20,000 per month
5
Work Experience
Min 1 year completed
6
Credit Score
Above 750
Factors to consider before applying for a Personal Loan
1. Eligibility criteria: Before applying for a Personal loan, check if you meet all the eligibility criteria mentioned.
2. Credit Score: You must maintain a score of above 750 to get your loan approved instantly. You can quickly get your loan at a low-interest rate when you have a high credit score. If you want to know your credit score immediately, you can use Buddy Score to get your full credit report indicating your creditworthiness.
3. Monthly Income: The lenders expect you to have a stable job with a constant flow of income to ensure that you can repay the loan on time. Therefore, a minimum monthly payment of INR 18,000 is mandatory to be eligible for a personal loan.
4. Debt-to-Income Ratio: A Debt-to-Income ratio shows the ability of the borrower to manage payments of the new debt. Lenders expect you to have a DTI less than or equal to 50% to get your loan approved.
5. Calculate the EMI: Calculate your monthly EMI to be paid beforehand and plan your repayment accordingly. By estimating your EMI, you can plan your loan budget according to your income.
6. Other charges: Before applying for a personal loan, consider additional charges like processing fees, prepayment, and late payment charges. It can help you get a clear picture of your expenditure and manage your finances better.
Summing Up
Though traveling is an expensive affair, a personal loan is always beneficial to meet those financial requirements smoothly. You don’t have to spend your savings or postpone your vacation. By qualifying the simple eligibility criteria and submitting minimum documents, you can get a personal loan to cater your travel needs instantly.
