Gone are the days when people used to save money for several months before planning for a vacation with friends or family. Now, personal loans are readily available, using which you can plan your holiday without thinking about the finances. Simply book your tickets, pack your bags, and head on!
Are you looking forward to planning for an awaited or spontaneous holiday? You can fund the expenses using a travel loan.
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Whether you are going alone or with friends or family, a personal loan for travel can help you make it happen. Unsecured personal loans are great financial instruments, using which you can fund most of your big-ticket expenses.
As far as a holiday is concerned, you can cover all the related costs with your loan amount, including the flight tickets, accommodation, sight-seeing, tour packages, adventure activities, etc.
Are you planning to head off to your next adventure? These steps will help you get a personal loan for your dream vacation.
Ways to Get Personal Loan for Dream Vacation
1. Calculate the Loan Amount to Borrow
Firstly, calculate the loan amount you need to borrow. Many personal loan lenders offer ample amounts of loans to the borrowers.
However, you need to calculate your expenses and apply for the minimum loan amount to cover the costs. Research your travel destination, make your trip budget and consider the amount you can spend from your pocket. Accordingly, apply for a loan amount that you can repay with ease.
2. Compare Lenders
Different lenders have varying terms and conditions that you must check before applying for a travel loan. You must compare lenders based on their loan amount, interest rates, repayment terms, processing fees and other charges, customer service, end-use restrictions, and other factors. Find a lender that best suits your loan requirement and repayment capacity.
3. Check Your Credit Score
Credit score is one of the most crucial factors lenders consider while scrutinising your loan application. It is a 3-digit number that indicates your credit behaviour and repayment history. Ranging from 300 to 900, lenders require your credit score to be above 700 to approve your loan application.
Filling up the loan application form with a low credit score will only lead to loan rejection and reduced credit score. Therefore, check your credit score before applying and ensure that it meets the lender’s minimum requirement.
4. Check the Eligibility Conditions
Most NBFCs have simple eligibility conditions that most borrowers can easily fulfil. Still, you must check your lender’s eligibility criteria to ensure that you are eligible to apply for their personal loan for travel.
Applying for a loan you do not qualify for will lead to loan rejection and reduce your credit score. Therefore, find a lender with eligibility conditions you can fulfil and apply.
5. Provide the Required Documents
Personal loans are available with minimal documentation requirements. Still, you need to provide a few essential documents along with your loan application form. These basically include your identity proof, address proof, and income proof. Some lenders require hard copies of these documents, while others ask for soft copies only. Check your lender’s documentation requirements and provide them with the way your lender wants.
6. Select Your Repayment Tenure
Most personal loans have flexible repayment terms that borrowers can choose according to their repayment capacity. A longer loan tenure means smaller EMI amount but higher interest outgo, while a shorter loan tenure means bigger EMI amount but reduced interest outgo.
Use a personal loan EMI calculator to select a loan tenure with the EMI amount you can easily afford within your monthly budget.
7. Make a Repayment Plan
You must start thinking about repayment even before applying for a loan. Once the lender approves your travel loan, your vacation will be over soon, and you will be left with a loan to repay over several months or years. Therefore, apply for a loan amount that you can easily repay. The selection of your repayment tenure is also critical, as it will determine the EMI amount you have to repay every month. Accordingly, you can plan your budget and repay the loan.
Conclusion
Are you looking forward to funding your dream vacation with a personal loan for travel? If yes, then a travel loan can be the best financial source to fund your trip and let you explore the world. Take advantage of the easy application and quick approval offered by NBFCs to fund your holiday without worrying about the finances.
