Finance Your Overseas Trip with a Personal Travel Loan
If you can’t afford to fulfill your dreams because of a low budget, then don’t worry we will explain how to get personal loans to fulfill your dreams.
International trips are the best times to experience a whole new environment, culture, and cuisine. Since foreign trips are not so common for most middle-class Indians, they promise unforgettable memories that people cherish for years. That said, traveling
abroad entails a sizeable expense, due to which many postpone their trip. However, covering travel-related expenses with a travel loan is an excellent way to head to a dream destination without shelling out money from savings.
Many NBFCs these days provide personal travel loans to fund international trips. Travel is one of the top reasons why many people apply for personal loans. Here is a look at why a personal loan is fast emerging as a convenient way to finance an overseas trip and how it works.
Reasons to Take a Personal Travel Loan
Here are the top reasons why one must take a personal loan for travel:
No Need to Exhaust Savings: Many people do not favor using lump-sum amounts from their savings to fund an international vacation. They want to keep them intact for emergency expenses. So, getting a loan for the trip is a wiser option for them without touching their emergency funds.
Instant Availability of Funds: Whether a planned vacation or a spontaneous trip, an online personal loan makes the required funds available quickly. Many NBFCs have a 100% online loan procedure that takes just a few minutes to complete. Once applied, the borrower gets instant loan approval and disbursal within 24 hours.
Pocket-Friendly EMIs: Many NBFCs have flexible repayment terms ranging from a few months to years. Borrowers may use a personal loan EMI calculator to calculate their personal loan EMI amount and select repayment tenure with EMIs suitable to their budget. They may choose a longer loan term that brings the benefits of smaller EMIs. On the other hand, selecting a shorter loan term may increase the EMI amount but save money on the interest outgo. The final choice depends on the borrower’s repayment capacity.
100% Online and Paperless Loan Procedure: Applying for a personal loan has become extremely easy. One may complete the procedure without leaving their doorstep, not even submitting the necessary documents. Many NBFCs have a 100% online and paperless loan procedure, which means applicants may scan and upload the documents online to avail of a loan.
No Collateral Requirement: Personal travel loans are unsecured loans one may avail of without any guarantor, security, or asset as collateral. Most NBFCs rely on the applicant's credit score to determine their credibility and extend a loan.
No End-Use Restrictions: A travel loan does not come with any end-use restrictions. Borrowers may cover all their travel-related expenses with this loan, including flight tickets, visas, accommodation, sightseeing, adventure activities, and even shopping.
Estimating the Loan Amount
Over-borrowing will lead to an unnecessary financial burden on the borrower, while under-borrowing will make the loan useless. So, estimating the correct loan amount one needs to fund the trip is crucial. Take these steps to do that:
Research the Destination: Read guidebooks, browse through travel websites, and get an idea of places and expenses in the place.
Make a Budget: Based on the research, calculate the total and per-day cost of the trip, including sightseeing, meals, lodging, transportation, etc. A travel agent may give a customized package tour and a fixed quotation. Borrow 10-20% extra to decide the loan amount.
Assess the Available Funds: Is it possible to raise some expenses from the savings? It will save the borrower from over-borrowing. Lower loan cost means easier loan approval and reduced interest outgo. So, consider paying a part of the trip from savings to keep the loan cost low.
Applying for a Personal Travel Loan
Reputed NBFCs have streamlined loan procedures one may complete from home within minutes. These are the steps to follow:
Visit the lender’s website or install their instant loan app
Provide the required details, including personal, bank, and employment information
Scan and upload the necessary documents to prove identity, address, and income
Get instant approval for the eligible loan amount
Select a loan term with an easily affordable personal loan EMI
Accept the loan offer and receive the approved amount in the bank account within 24 hours
A travel loan is the best way to fund an overseas getaway. Therefore, if a foreign trip is on the cards, do not hesitate to approach a lending institution offering a personal loan for travel. Doing so will finance the trip without delay and unlock an instant financing option.