The scorching heat of the summers compels many to go on a vacation. It is also an ideal time for travel plans with the family, as most schools remain closed because of the sweltering heat. While planning a tour is simple and enjoyable, funding it is often the tricky part. If money is a source of concern, you can always consider taking a personal loan for travel.
Availing a Loan For Travel
Generally, people spend most of their savings to finance a family trip during summers. However, doing so leaves them in a financially vulnerable state. This is why it is better to avail a travel loan to fund such trips. You can then pay off these loans through smaller, manageable EMIs.
However, before you avail a personal loan for travel, consider the following factors to benefit the most from the loan.
Things to Know Before Availing a Travel Loan
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Eligibility Criteria
The first thing loan applicants need to check is whether they match the minimum criteria for the loan. Here are some factors, which reputed NBFCs consider for all personal loan applicants.
- Income – Applicants with a higher income can opt for higher loan amounts. You must meet the minimum income requirements to qualify for a personal loan for travel from any financial institution.
- FOIR – Fixed obligation to income ratio or FOIR refers to the ratio of your income against your current debts. To avail a personal loan, the FOIR must be below 50%.
- Credit score – Your credit or CIBIL score is a measure of your creditworthiness. Maintaining a score above 750 makes it possible to avail personal loans.
The amount of loan you can avail largely depends on the factors mentioned above. Personal loans are unsecured, which is why all applicants must meet all of these factors to avail such a loan.
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Interest Rates
Lower interest rates make your EMIs more affordable. Many NBFCs, such as Bajaj Finserv, offer personal loans at competitive interest rates. Check the travel loan interest rates to ensure hassle-free repayment.
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Tenor
The loan tenors you avail are the final determinant of your loan EMIs. Leading financial institutions such as Bajaj Finserv offers multiple repayment tenor options between 12 and 60 months. Make sure you are comfortable with the tenor before taking the loan.
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EMIs
You can easily use a personal loan EMI calculator to plan your finances. It is advisable to do so before you avail the loan so that you know the EMIs you will need to meet before the due date.
Applying For a Personal Loan For Travel
An online application is the fastest method to avail a personal loan. Visit the NBFCs website and refer to the personal loan application page.
- Fill in your personal and employment details on the online form and click on submit
- Select tenor and loan amount. Some NBFCs offer instant approval of loans if you are able to satisfy their eligibility criteria.
- Submit all related documents.
- Wait for the loan disbursement in your bank account. Generally, this money is credited within a day or two.
Refer to lenders such as Bajaj Finserv who offers such loans with easy-to-meet eligibility criteria and minimal documentation.
They also provide pre-approved offers which make the process of availing loans easier and quicker. Pre-approved offers are valid on home loans personal loans, business loans, and on numerous more financial products. You can check your pre-approved offer by providing only your name and phone number.
Utilise your personal loans for travel to make your summer vacation the most enjoyable without making creating a difficult financial situation. Opt for lenders who provide the most beneficial loan terms and features to help you avail the loans easily.
