According to the World Travel and Tourism Council, India has gained great success in the tourism industry and has collected revenue of Rs.16.91 lakh crore in 2018.
One of the major reasons behind this growth is the easier availability of customised credits that help individuals to travel beyond any financial constraint.
Financial institutions and NBFCs have thus introduced collateral-free travel loans to support these expenses. These personal loans for travel benefit its borrowers by providing substantial amounts of up to Rs.25 lakh to manage expenses such as hotel stays and flight bookings. To enjoy other lucrative benefits offered by these loans, make sure to consider the below mentioned points before you apply.
- Loan tenor
Opt for a longer tenor to make your EMIs less expensive on your pocket. However, if you have the required cash flow and the eligibility to pay higher EMIs, you can choose to have shorter tenor to reduce the burden of a travel loan.
To avail a travel loan, you will have to share some documents as discussed below –
- KYC documents such as voter ID card, passport, Aadhaar card, PAN card, and driving license.
- Address proof such as electricity bills, telephone bills, water bills, and gas bills.
- Income proof such as salary slips and bank account statements of the last three months.
In addition to the above mentioned documents, salaried employees will also have to provide their employee card.
- Eligibility criteria
Consider choosing the right personal loan lender with flexible eligibility criteria. The standard personal loan eligibility criteria for travel are –
- The age bracket provided ranges between 23 and 55 years.
- A credit score of 750 and above.
Besides meeting the above criteria, you will have to be an employee of a public or private company or any MNC with a considerable salary. You will also have to be a resident of India, residing in any of the cities where your lender operates.
- Charges of your loan
Your lender will apply an interest rate and other charges on your credited amount. Such additional applicable charges are given below.
- Processing fee – This type of costs is applied for your application for a travel loan.
- Late payment fee – Every time you fail to pay your EMI on the due date, your lender will charge an additional rate on your loan amount, which is also known as the penal interest.
- Documentation charges – These charges are applied for issuing loan statement, interest statement and principal amount statement.
Other charges that are applied along with the above mentioned charges are security fee, outstation collection charges, etc. whose rate may vary for each lender.
Having a good CIBIL score and financial stability are some ways to get the best personal loan rate for travel.
- Application process
The application process for a travel loan is convenient, and you can do so online. To apply, you will have to visit the official website of your lender and fill an application form by providing your financial, personal and employment details.
After you fill the application form, select the EMI tenor and loan amount and wait for instant approval. Once you have submitted all the required information, a representative of your lender will visit you to collect the above mentioned documents. As soon as your lender collects the documents from the representative, your amount will get reflected on your bank account in a day.
- Pre-approved offers
Pre-approved offers are an ideal way to avail the most attractive personal loan interest rates and also make the application process fast. Several financial institutions provide pre-approved offers to reduce the hassle of the application process. Lenders such as Bajaj Finserv provide such pre-approved offers on numerous financial products including both secured loans like home loans and unsecured credits such as business loans and personal loans. These offers make the process of availing loans easier and quicker. Check your pre-approved offer by sharing minimal details like your name and phone number.
Bajaj Finserv also provides travel loans against minimal documentation and only some basic easy-to-meet eligibility criteria.
Along with the above mentioned points, you should also check the EMI amount, pre-payment and foreclosure charges, EMI bounce fee, etc. However, make sure you utilise the loan amount appropriately and never miss your EMI due date to avoid the accumulation of massive debt and hefty penalties.