Who does not like to travel? But to make your vacation enjoyable, you must plan it out in advance, right from the date of journey, and activities you would like to undertake, places to visit, but more importantly drawing a budget and arranging necessary finances. Due to lack of funds, many people have to suppress their wanderlust spirit. It is true that we must be careful about spending, but what if you really wish to go to a certain destination, or if the travel is not for whim, but a crucial one, perhaps for a business meet-up or to attend a particular event? Can you still avoid the trip because you do not have adequate cash-flow?
With a personal loan, you can make all your travel dreams come true, be it just because you want to visit a tourist sport or reserve the trip for an important purpose. You may think, why borrow for your vacation, when it is easy to liquidate an asset or investment and generate funds. But, our question is, why you should take a drastic step of breaking your hard-earned savings or liquidating an investment for a simple or crucial travel plan, when you can afford to make a trip with an unsecured loan. An unsecured loan like a personal loan is given by banks and NBFCs without a need for collateral. Thus, you do not have to submit any asset as security to avail funds.
Who Can Take Personal Loans to Fund Holidays?
You simply have to apply for a personal loan with the financial institution, fill up the application form, sign it, and give the documents required, wait for approval, and once approved, the funds are disbursed to your bank account. If the process is shifted to online platform, all this can happen within a matter of minutes and the funds can reach your bank account within just 48 hours. Thus, personal loans are also a rescue for pre-planned or last-minute travel trips.
You can borrow as less as Rs. 1 lakh and maximum up to Rs. 20 lakhs. As the loan in unsecured, lending institutes usually consider salaried individuals as ideal candidates, but the schemes can extend to professionals such as CAs, doctors, government employees etc.
How to Utilize a Travel Loan?
Though you do not have to specify the reason for taking this loan, if you have travel on your mind, you may reveal the purpose of the loan to the lender. Whatever the purpose is, a personal loan can be utilized to fulfil any financial requirement. Thus, if you want to use part of the funds for a trip, and rest for another purpose, you can do so. Or, if you had taken the loan specifically to pay for the journey, but then intended to use it for anything else, you can do so, with no questions asked, as long as the money is not utilized for any illegal activities.
The loan amount is not only to fund the ticket expenses, but to book hotels, manage purchases, shopping clothes, gadgets, anything you want for the travel. Once the funds reach your bank, you can handle it the way you like.
Why to Repay a Personal Loan for a Trip on Time?
Do remember you have to pay monthly instalment to repay the debt. If you delay or miss the payment, late payment charges may apply. If you default at the loan repayment all together, then stricter action would be taken by the financial institution. Thus, before applying for a personal loan, you must check all the terms and conditions, and repayment guidelines along with the total cost of the loan, and plan payment towards it wisely.
Missing travel loan payments would also affect your credit score, which can further weaken your chances of attaining any line of credit in the future. Thus, you must restrict yourself from defaulting at a personal loan for your own sake. Your financial history speaks of your creditworthiness, and that should not be marred by any means. Thus, while you enjoy the holiday, you must not forget the duty of clearing the debt.
What is a Top up Personal Loan and Travel Loan Transfer?
You can take more than one loan at a time, but restrict from doing so until totally necessary. Increased liabilities will put additional pressure on your finances. If you want additional personal loan for travel, then you can go for top up loan than taking another type of loan.A top up personal loan for travel is simply credit extension on existing loan. If you think the existing loan is expensive than an offer from another bank, you can look for the option of loan transfer.
However, you must check all the details of this new loan before finalizing it, since not just the interest rate but other fees, and hidden charges also matter to arrive at a decision. Sometimes it is not about the cost of the loan but other services and aspects of the scheme that may provoke you to opt to transfer the personal loan. For example, another provider may offer you a better tenure and flexible terms and conditions than the original provider.
Thus keeping all the above-mentioned factors in mind, you can get a perfect personal loan for your travel needs.