Should You Opt for a Personal Loan for Travelling – Explained!

Travelling is fun only when you have funds. Each stage of your travel plan will require proper financial consideration, be it purchasing tickets, booking hotels, applying for visas (if you are planning a trip overseas), going to places, carrying extra cash, and so on. Thankfully, planning a vacation is now easier than ever before, thanks to simple financing choices such as quick cash loan apps. Through these loan apps you can now cover the majority of your travel expenses and pay it back in easy monthly EMIs.

You can avail a personal loan for your travel expenses and pay it back in regular instalments from your monthly salary. This will help you enjoy the best of places without hurting your pocket. But before you install a loan app and apply for a travel loan, you must dig deep and learn everything about this liability.

Why Take a Personal Loan for Travel?

There are numerous compelling reasons that make a personal travel loan a smart finance idea. Some of these reasons are listed below –

  • Best for instant funds: Your travel plans can be instantaneous. Last-moment plans are quite common, and in such cases, you would need quick financing options. In such scenarios, applying for a personal loan using quick cash loan apps is the best idea. You can get your loan approved within minutes and the loan amount will be credited to your account on the same day. All you need is to submit the necessary documents and get through the verification.
  • Minimal Documentation: Personal loan for travelling these days requires minimum documents for verification which includes identity proof, address proof, income proof, and some additional documents that your lender may request. You can submit a digital copy of these documents which means you can apply for this loan while you are on your vacation in case you decide to extend your trip.
  • No Collateral: A personal loan for travelling is perfect for the young generation. Those who have the energy, desire and time to travel the world, but the only thing holding them back is their finances. Well, with personal loans they can fulfil their travel bucket list without worrying about their finances. A personal loan, unlike other sorts of loans, does not require collateral. That means you can get your loan approved even without having an asset.
  • Flexible Repayment Tenure: Personal loans give a repayment tenure ranging from 6 months to 24 months, which gives you ample time to repay your loan. With smart investments and planning, you can easily cover up the interest to be paid.

Things to Keep In Mind Before Applying for a Personal Loan for Travel

Before you apply for a personal loan for travel, you should keep the following things in mind:

  • Set a limit. Make an estimated budget and apply for an amount that could suffice for your holiday essentials. Include the cost of flight tickets and hotel bookings and cut back from unnecessary splurging. Remember the less you borrow, the lesser you will be paying back.
  • Check out discounts and vouchers to get the best travel deals. You can also ask your lender if they have any tie-ups that could offer you potential benefits.
  • Make sure to ask your lender about the option of prepayment or loan foreclosure.
  • Analyse your repayment plan before you apply for the loan. Apply for an amount that you can easily pay off without hurting your monthly expenses. Also, while planning your loan, take into consideration unforeseen events like job loss.
  • Ensure that you keep the payback period as short as feasible while keeping your monthly budget in mind. A longer loan tenure implies a bigger interest payment.

How to Make an Estimate for Your Travel Loan Amount?

Choosing your travel itinerary and fixing a loan amount is critical. Here is how you can make an approximate estimate for your travel loan amount.

  • Select Your Destination

Before applying for a loan, you need to know your travel expense, and your travel expense will entirely depend on your choice of destination.  The cost of hotel stays, flight tickets and other expenses will vary depending on your destination.

  • Create a Budget for Your Trip

Once you have finalized your destination, you will have a better idea of your expenses. Plan your itinerary and that will give you a fair idea of your daily expense during the trip. Add the cost of flights and hotel bookings and you will have an approximate budget.

  • Include Any Savings or Cash You May Have

It is always best to keep the loan amount as low as possible. So, if you have any savings or liquid cash in your account then consider that first. Try to raise as much funds as you can on your own and then use an EMI calculator to check the EMI for your loan amount. Cutting down on the borrowed principal will lessen your EMI burden.

To conclude

Opting for a personal loan for your travel plans is one of the best decisions you will ever make. Personal loans are made available for you to fulfil your dreams, without having to worry about a restraining budget. With quick loan apps, they are made simple, easy, and instantaneous. You do not have to put up any collateral to get this loan and the eligibility criteria are also very simple. However, the best thing about opting for a personal loan is that you can pay it back in easy monthly instalments, which is very pocket friendly.

Related Articles

Back to top button