Personal loan for travel
A personal loan is generally an unsecured loan—meaning no collateral or guarantor is required in order to obtain it. As the name suggests, it is a loan taken by an individual to fund any personal expenses like, for example, a wedding, to remodel the home or even for a luxurious vacation.
Many people yearn to travel unknown places and mark the unexplored places in the world. Some travel to experience different cultures, while some travel just to take a break from their ordinary routine. Travelling allows one to disconnect from the monotony of daily life and rejuvenate.
But do you have the pre-requisite funds to travel? Travelling needs money. If you don't have enough funds to travel, then taking a personal loan to cover your travel expenses could be one of the ways to make your dream come true. As the end-use of a personal loan is not restricted, you can use the loan amount in any way you want.
If you are planning to go on a round-the-globe vacation or simply intend to fly off to a local destination, you can do so without maxing out your credit card or going broke. Many banks and NBFCs offer personal loans to cover travel expenses.
A personal loan can be an attractive option for a traveler, for the following reasons:
• The loan disbursal is quick, which means you can travel without any delay.
• You can repay your loan in easy EMIs, and you can choose a tenure that is comfortable for you.
• Personal loans are unsecured loans which mean you need not offer any collateral as security.
• The whole process of loan approval is hassle-free.
• Documentation is minimal, and some lenders offer loans against credit cards instantly (Instant loans), depending on your relationship with them.
• Personal loans are cheaper than credit cards and hence, more viable.
However, consider your borrowing needs before opting for a personal loan to fund your travel expenses. Before getting into debt, see if you can use your savings for travel. Before you start shopping for personal loans to cover your travel expenses, stop and ask yourself this question 'What can I afford?' to prevent yourself from overborrowing that could possibly land you in a financial rut.
Also, you need to ensure you have a regular source of income if you are planning to take a break from your job to travel overseas. Save some money and keep it aside as a hedge amount. You should have an assured source of income to ensure that you pay off your monthly EMIs on time, consistently.
It is also wise to check your credit score and credit history before applying for a loan so that you know where you stand. This gives you a chance to improve your credit score if it is low and better your chances of loan approval. Improving your score helps you get loans at much better interest rates from lenders. A good score also helps you get access to offer from multiple lenders – giving you better choice.
Travelling doesn't always come cheap and requires careful planning of finances so that you don't go broke.
Personal loan for travel – How to apply
You can check your eligibility and apply for a personal loan by signing up with CreditMantri. It is quick, simple and above all, free.
CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender's credit criteria. Hence, the chances of your business loan application getting approved are higher.
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