How Has Travel Loans Helped Open Up New Horizons For All The Wanderlust’s Out There
Millennials are a generation that have an inherent desire for travelling the world. But sadly, many of them are unable to fulfill their dreams due to financial constraints. Even a short budget vacation can amount to quite a bit of money.
The good news is that you don’t need to shelve your travel dreams just because of a tight budget; taking a travel loan will allow you to see the world, without putting a major dent in your finances.
Below are just some of the things that a travel loan can be utilized for when planning your vacation:
1) Flight tickets
2) Visa costs
5) Transportation costs
8) Unexpected/emergency expenses
How to Apply for Travel Loan
In order to know what amount of a travel loan you should apply for, first, you need to create a detailed travel budget. Here are some tips on how to make your own:
- Research the destination: The best way to figure out great tips on how much to realistically fork out for your trip is by doing some research online. There are plenty of forums and experiences from travellers that can help make an informed decision on the estimated costs in the destination area.
- Calculate the expected costs: Depending on where you’ll be travelling to and your itinerary, you will need to know both the per-day and overall cost of your trip. Outline the entire list of costs including items like flight tickets, visa fees, transportation, lodging, meals, and shopping.
- Factor in unexpected expenses: Even with the best budgeting skills, it might happen that you aren’t prepared for emergencies. Keep a buffer of about 20-30% to these costs, in case there are any unexpected expenses that arise.
Benefits of Travel Loan
As a wanderlust traveller, there are numerous benefits to availing a travel loan, which we’ll explain below:
- ) Affordable EMIs: Even if you avail a large travel loan, the monthly EMIs you will need to repay can actually be very low. For example, on a travel loan of Rs. 1 lakh, your EMI can be as low as just Rs. 2,500 per month! The key to this is to avail a travel loan at a longer repayment tenure. Although you would end up paying a little more interest on the extended tenure, your EMIs will be extremely low, making it very easy to repay.
- ) Minimal Documentation: Another great reason to get a travel loan for your vacation is that they need only a few easily available KYC documents in order to apply for them. This saves the time and effort for needing to provide numerous documents.
- ) Fast processing & approval: If you’re planning a vacation, you can get a travel loan approved and disbursed to your bank in just three days or less! This is highly beneficial for any traveller, since so many of the holiday costs need to be paid in advance.
- ) No collateral required: Most traditional loans require collateral as a security in order to avail the loan. This is a huge inconvenience since borrowers would be required to pledge their assets that are in value equivalent to the amount of loan they wish to avail. Many people who would want to take a loan simply don’t have any assets that they can provide. On the other hand, getting a travel loan from online lenders is completely unsecured, which means they don’t require collateral to avail the loan. This feature makes it extremely convenient and hassle-free.
- ) Better than credit cards: Using your credit card might be useful for racking up travel miles, but they can’t cover all the expenses that a travel loan can. Credit cards have fixed limit of useable credit. Additionally, it’s not advisable to utilize more than 30% of the available limit on your credit card, as it has a negative impact on your CIBIL score. With a travel loan, you can get all the funds you need at an affordable interest rate and flexible repayment tenure. This gives you lower EMI rate that can be easily accommodated in your monthly budget.
- ) Builds credit: We all know that using credit cards has a positive or negative impact on your credit score, depending on your repayment habits. One of the factors that also affect your credit history and credit score is the amount of funds borrowed by an individual.
As a borrower avails larger amounts of credit and repays it back in time, it positively reflects on their CIBIL and credit report. In turn, this can increase the borrower’s credit limit and fetch them lower interest rates and excellent repayment terms for any loan. Therefore, availing a travel loan will increase your credit score and personal loan eligibility, so long as you make your EMI payments on time every month.
Travelling and exploring new destinations has the ability to rejuvenate the mind and spirit. Whether you have globetrotting ambitions or just need a short break from your hectic life, don’t let a lack of finances diminish your wanderlust. Apply for your travel loan today!