There’s no denying that we all have our dream vacation destinations. But you will realize that most of them in foreign countries are actually quite expensive. From booking air tickets to staying in a hotel and sight-seeing, the expenses add up quite a bit. If you have the aspirations for a personal holiday but not the money, you can look at some kind of a financing route.
Many people take out a personal loan to finance their travels. If you look at it, it makes a lot of sense to do so – personal loans are typically quick to disburse and come with minimal documentation formalities. Many lenders don’t limit the usage of personal loans either. What’s more, they are unsecured i.e. you don’t need to pledge a collateral as security for getting a loan. When it comes to the application process, it is easy and can be done online for most lenders.
Some people actually prefer using a credit card to finance their vacation. But remember that credit cards come with a high interest rate and you may end up spending more than with a personal loan. Here are some salient features of a personal loan that make it a good option to finance your dream vacation –
- Applying for it is quick and hassle-free. You can get the loan amount in your bank in as less as 24 hours after approval
- Personal loan eligibility criteria are typically relaxed – as an Indian citizen, you have to meet a minimum age and salary limit
- No tedious documentation process is involved. You just need some basic documents like Aadhaar card, PAN card, driving license, etc.
So, the next question is, how to apply for a personal loan?
Before you get a personal loan, there are some things you have to do. First of all, finalise your destination and know the estimated costs of the entire vacation. Apart from tickets (train, air, bus) and hotel, also take into account food sight-seeing, shopping, commuting within the location, etc. If you’re traveling during peak season, expect higher tariffs. Next, calculate the time left before you go for your vacation so you know when the right time to approach the bank is.
Next, you need to calculate the EMI on the loan, which will be based on the personal loan interest rate and its tenure. This is something that will help you understand if you can afford this loan or not. Many lenders have a personal loan calculator on their website or this reason. You can use this tool to calculate your EMI.
If you want a low personal loan interest rate and quick approval, it helps to maintain a good credit score. Ideally, you shouldn’t have applied for a loan in the last 6 months because this affects your repayment capacity in a lender’s eyes. To sum up, it is possible for you to turn your dream vacation into a reality with a personal loan without mortgaging any assets. Be prudent when applying for it and consider your requirements when you apply for a personal loan.
There’s no denying that we all have our dream vacation destinations. But you will realize that most of them in foreign countries are actually quite expensive. From booking air tickets to staying in a hotel and sight-seeing, the expenses add up quite a bit. If you have the aspirations for a personal holiday but not the money, you can look at some kind of a financing route.
Many people take out a personal loan to finance their travels. If you look at it, it makes a lot of sense to do so – personal loans are typically quick to disburse and come with minimal documentation formalities. Many lenders don’t limit the usage of personal loans either. What’s more, they are unsecured i.e. you don’t need to pledge a collateral as security for getting a loan. When it comes to the application process, it is easy and can be done online for most lenders.
Some people actually prefer using a credit card to finance their vacation. But remember that credit cards come with a high interest rate and you may end up spending more than with a personal loan. Here are some salient features of a personal loan that make it a good option to finance your dream vacation –
- Applying for it is quick and hassle-free. You can get the loan amount in your bank in as less as 24 hours after approval
- Personal loan eligibility criteria are typically relaxed – as an Indian citizen, you have to meet a minimum age and salary limit
- No tedious documentation process is involved. You just need some basic documents like Aadhaar card, PAN card, driving license, etc.
So, the next question is, how to apply for a personal loan?
Before you get a personal loan, there are some things you have to do. First of all, finalise your destination and know the estimated costs of the entire vacation. Apart from tickets (train, air, bus) and hotel, also take into account food sight-seeing, shopping, commuting within the location, etc. If you’re traveling during peak season, expect higher tariffs. Next, calculate the time left before you go for your vacation so you know when the right time to approach the bank is.
Next, you need to calculate the EMI on the loan, which will be based on the personal loan interest rate and its tenure. This is something that will help you understand if you can afford this loan or not. Many lenders have a personal loan calculator on their website or this reason. You can use this tool to calculate your EMI.
