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. However, travelling can be quite expensive, as you need to pay for several things. But thanks to a travel loan, you can avoid giving up your wanderlust nature because of financial constraints. 

With the repayment being in easy monthly instalments, you can manage your travel costs without straining your budget. Read on to learn more about holiday loans. 

What are Travel Loans?

It is type of a personal loan that you can get exclusively for travel. You can use the funds to take a trip within or outside the country for personal or business purposes. These come with no-end use restrictions, so you can cover not only ticket expenses but everything you pay for during the trip, including:

• Air or train tickets 
• Local transport 
• Accommodation 
• Food 
• Sightseeing expenses  
• Purchasing souvenirs 

Travel Loan Interest Rates

However, lenders levy interest on personal loans for travel, which you must pay along with the borrowed amount. Other aspects to keep in mind include the processing fee, prepayment charges and offers provided. 

All these charges amount to your total borrowing cost and therefore, should be compared before taking a travel loan. So, do your research before choosing a particular lender to ensure you choose the most pocket-friendly option. Use an EMI calculator to compare the interest for different offers.

Why are Travel Loans Surging in Popularity?

There are several reasons why this option is becoming increasingly popular, including the several perks that come with it. Some of these are:

• Minimum Documentation

Since a travel loan is unsecured, there aren’t too many documents required. Proofs of your identity, employment and address are typically adequate for the lender to sanction a personal loan for travel. You can even apply for instant cash loans online through services like Fibe, making it easy to get funds from the comfort of your home as you can upload your documents online.

• Instant Approval

This is a key advantage for a travel loan online with lenders like Fibe. Due to the digital process, the amount is transferred to your account within 24 hours. This enables you to go for last-minute travel plans without worrying about where you will get the money from.

• High Loan Amounts

While Fibe allows you to take out an instant loan for up to ₹5 lakhs, you can borrow higher amounts if you enjoy good credibility and history as a borrower. That too at nominal interest rates. This will help cover all your travel-related expenses affordably. You also have complete control of the money, meaning you can decide exactly how much and where you wish to spend it.

• Flexible Repayment Options

The tenure of the loan can be chosen according to your financial ability and comfort, ensuring no stress during repayment. With online EMI calculators, you can decide on a suitable loan duration and plan your budget accordingly. 

Thanks to fintech advancements, you can pay off your holiday loans through apps and can even set up automatic payments for a hassle-free process with no delays.

• No Collateral

Since it’s an unsecured loan, you don’t need a guarantor or offer any security. So, you don’t have to worry about losing your assets if you don’t repay the amount, which is the case in secured funding. However, do note that not paying your loan on time can affect your credit score and ability to get credit in future.

Also Read: Quick Access To Travel Loans

Benefits of a Personal Loan for a Vacation

Here are some key advantages of getting a travel loan, which is a type of personal loan: 

• No need to liquidate your assets or deplete your savings
• Low-cost funding with zero additional costs, depending on the lender
• No financial constraints as you can get high loan amounts with no use restrictions
• Multiple lucrative options to choose from
• Easy repayment plan through EMI to ensure a stress-free experience

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. One of these is ensuring that the repayment fits your income. You also need to ensure that the loan amount you’re taking is adequate for your travel expenses but not much more than necessary. This is because the interest also depends on the loan amount and borrowing too much would ultimately increase your cost. 

To meet your travel expenses with ease, consider getting an Instant Personal Loan from Fibe. You can get funding of up to ₹5 lakhs at rates starting at 2% per month. What’s more, this financing option comes with tenures of up to 36 months and zero prepayment or foreclosure charges. Download our Personal Loan App or go to our website to apply with minimal documents!