Everyone is indeed a traveler the only thing which affects the will to travel is lack of funds. Generally people save some portion from their income in order to fulfill their travel plans but it takes time. To overcome this situation one can take Travel Loan to fulfill their dreams and travel. In this economic scenario it is difficult for one to save for their dream vacation as they not only have to invest money but also time.
Travel Loan is a kind of unsecured personal loan and it can be applied online. Generally the interest rates starts from 12% but it depends majorly on personal risk appetite. Once applied online it takes 3-7 days to approve the same.
You should go for a Travel loan if:
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- You want to enjoy your life with your friends, family and partner and do not
wish to postpone your dream plans just because of want of funds.
- You do not wish to liquidate your savings such as Fixed deposit to spend on
- You have faith on repayment capacity and have a well-paying job and you know you will be able to repay your debts.
Types of Travel Loans:
Domestic Travel loan
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Domestic travel loan are available to individuals as per criteria set by different banks. These loans are of lower amount than any other loans as only domestic travel is covered under this scheme. Some banks also provides travel loans to senior citizen to cater their travel fund needs. These loans carry lower rate of interests than other travel loans.
As travel loan is a kind of Personal loan, these can help you with your travel expense. As for personal loans no limitation of usage is there these types of personal unsecured loans can be used for any purpose other than travelling also.
Foreign Travel Loan
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Foreign travel loan are usually of higher amounts than any other loans. These loans covers expenses such as Accommodation, Air/Bus/Train fare, other tour related expenses. All the above mentioned loans can be availed by individual for personal use as well as for their relatives or dependents.
Travel Loans are cheaper than credit card or any other personal loans. The repayment of these kinds of loans generally ranges from 12 to 60 months and can have flexible repayment tenures. The processing fees are applicable based on the bank providing the loans but it does provide hassle-free processing.
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In order to avail loan one needs to provide all the details regarding their travel such as tickets, booking proof, accommodation details etc. Some of the popular travel loans offering banks in India are SBI holiday savings Account, ICICI bank personal Loan for travel, Axis bank Holiday loan, Bank of India star holiday loan etc.
There are of course alternatives available for travel loan for those who do not want to have interest burden. The alternatives include traditional method such as saving money from their regular income and investing the same till there is enough fund to travel. Also savings accounts and deposit accounts can be maintained but all these takes time so to take a travel loan is a justified option to avail immediate funds.