Tips to Take into Account while Applying for A Travel Loan
Travel loan is a smart way to pay for your travel expenses when you are broke or do not want to break your investments. Travelling is done both for passion and necessity. You may have a long bucket list of places to visit, or you may need to travel for medical purposes, or you may travel for meeting your friends or family, or simply to experience a new culture.
Applying for a travel loan is the best way to fulfil your travel needs. Travel loans have become popular among people with a stable income and a steady job since it offers lucrative opportunities and packages. To escape from your routine and boring life, you need to visit new places to bring back excitement and thrill. Sudden, unplanned trips are even more enthralling. You can travel solo, with friends, family or your partner. However, travelling is costly, and many people find it challenging to arrange travel funds. The percentage of people who cannot arrange for their travel expenses are approximately 47% of the working population in India. A travel loan is a solution to this problem.
About Travel Loans
Travel loans are unsecured loans that do not require any collateral, and you can avail of the loan online with minimum documentation. There is no need for paperwork to be done, and you can take the loan at a low rate of interest. The repayment tenures are flexible, and you can take a loan for the amount you desire.
Many banks offer personal loans which can be used in providing for your travel costs as they do not have a separate segment of travel loans. However, the rate of interest remains the same. Furthermore, you can get instant approvals for travel loans to satisfy your sudden urge to travel.
Initially, travel was seen as a luxury and taking a loan for travel was not acceptable by many. But, now things have changed, and travel loans have become more acceptable to millennials.
TripMoney by MakeMyTrip offers travel loans at a low-interest rate of 20% per annum with flexible repayment tenures.
Tips for Taking Travel Loans
There are certain points that you should consider, before applying for a travel loan. These are listed as follows:
Amount of the Loan
You should carefully calculate your monthly income and savings before deciding on the loan amount so that you do not find yourself in financial stress while paying the monthly EMIs. You should assess your repayment capability and take the loan accordingly. Never take a loan amount that exceeds your ability to pay back the borrowed amount. It will lead to pressure on your shoulders and will cause you an unnecessary burden. Ensure that your interest does not exceed 50% of your monthly income. A low debt-to-income ratio is advisable, as it will be easier for you if in any month your income fluctuates or is reduced. TripMoney offers borrowers any amount between Rs. 4500 to Rs. 25000.
Always choose a loan tenure that translates into convenient EMIs that you can easily pay without facing any stress. You can use an EMI calculator to find the right choice of loan tenure, EMI and loan amount. You can choose the repayment tenure amongst the options of 3, 6, 9, 12 months in the case of TripMoney.
You should always apply for a loan that offers flexible repayment options so that you can clear off your debt as soon as you have the funds. Some lenders have a prepayment penalty, lock-in period and foreclosure charges which prevent you from repaying the loan prior to the repayment tenure. It is an important criterion to consider while taking a loan, and you should compare this factor in loans by different lenders while checking the terms and conditions.
Plan a Smart Budget and Enjoy your Travel
Plan your vacation beforehand. Make a list of all the things that you need to pay for and make a smart budget. Stick to your budget and estimate a feasible loan amount that you will be comfortable with repaying. Control your desire and stop yourself from overspending.
Get your Travel Insurance
Apply for travel insurance that provides urgent financial assistance while you are travelling. It will save you from unforeseen circumstances such as unfortunate accidents, cancelled hotel bookings, lost passports and other documents. In such a case, you can get financial aid in a foreign land to recover your lost passport. Travel insurance is more important if you are taking a travel loan, as you cannot bear to miss your monthly EMIs. It becomes your friendly companion when you suffer from any mishappening. You can get your travel insurance done from TripMoney.
Get your Documents Arranged
Although you can get travel loans without any trouble, you should keep the necessary documents such as address proof, identity proof, salary slips, and bank statements, ready in case they are required. If you fail to produce any of these documents, there might be a delay in getting the loan approved, or you may be denied the loan. TripMoney requires you to submit only your Pan card, Aadhar card and birth certificate. Your eligibility is checked, and the loan is approved instantly.
Pack your bags, book your tickets and get set on your journey. Travel easy with TripMoney, which provides wonderful travel products such as travel loans and travel insurance.