Postponing your travel plan just because of lack of funds? Travelling helps you take a break from daily routines, experience new things, create unforgettable memories, reconnect with yourself, and more. You shouldn’t have to miss out on life-changing experiences just because your funds are limited. Instead, take a travel loan to fund your adventures.
Travel loans are becoming a popular option for Indians looking to fund their travel plans. In fact, 24% of personal loan applications between April and June 2023 were specifically for travel needs. This is a significant jump from just 16% in the first quarter (January and March 2023). This growth shows the importance of travel loans in making your dream vacations a reality.
What is a travel loan?
A travel loan is essentially a personal loan that can be used to fund holiday or vacation plans. It is also known by terms like holiday loan, trip loan, tour loan, tourist loan, or vacation loan.
Since travel loans are unsecured loans, you do not have to provide any collateral to get the funding. Your eligibility is determined by factors like your credit score, income level, occupation, employment history, and debt-to-income ratio.
Things you should know about travel loans | Top features and benefits
- Rapid fund disbursement
Delaying access to funds means missing out on last-minute deals or exclusive travel packages that require quick payment. Such delays can limit your travel options or increase the cost if cheaper fares sell out. Personal loans address this issue by offering quick access to funds. In fact, many banks process loan applications and transfer funds on the same day.
- Unrestricted use of funds
A personal loan for vacation usually comes with no end-use restrictions. Hence, you can use the borrowed funds to cover all types of travel-related expenses, such as:
- Flight tickets
- Hotel stays
- Tour packages
- Shopping
- Expensive dining
This flexibility means you don’t have to put your travel dreams on hold any longer.
- Customisable loan amount
With IndusInd Bank Personal Loans, you can borrow anywhere between ₹30,000 and ₹5 lakh. This range allows you to tailor the loan precisely to your travel budget. Moreover, the competitive rates make your entire loan journey affordable and stress-free. Here are additional benefits you get:
| 100% digital process | Complete the loan application process online from the comfort of your home. |
| Paperless process | No need to submit physical documents. Everything is handled electronically. |
| Easy to meet criteria | Basic eligibility requirements make it easier for a broader range of borrowers to qualify. |
| Fast disbursal | Quick loan approval and fund disbursal means you can fund your travel plans without any delays. |
Make sure to use a personal loan monthly EMI calculator before you apply for the loan. By entering the loan amount, interest rate, and repayment tenure, this online tool helps you calculate your payable EMIs and plan your expenses and budget better.
- Manageable repayment options
Paying for travel out of pocket can exhaust you financially, especially if you are aiming for a longer trip or a luxurious experience. A travel loan lets you divide the cost over a convenient repayment period (typically 12-48 months). This way, you can enjoy your entire trip stress-free and repay the borrowed amount in smaller, more manageable EMIs.
- Protection of savings
Your savings might be meant for retirement, children’s education, emergencies, or other goals. Using them for travel can impact your financial health, especially if unexpected expenses arise or when the time comes to meet a financially planned goal. Using a personal loan for holiday expenses makes sense as it lets your savings stay untouched.
Key takeaways
Travel loans offer a practical way to finance your dream vacations. You enjoy the convenience of online applications, quick access to funds, competitive interest rates, flexible repayment tenures, and no restrictions on usage. Most importantly, you can boost your credit score with timely payments of EMIs.
Before finalising your travel loan, it’s wise to use a personal loan EMI calculator available online. This tool helps you understand the monthly outflow towards your loan, which you can use to plan your repayment strategy better.