Have you been dreaming of going on a vacation with your loved ones? Or, you may want to set off to an exotic locale by yourself to get away from the madding crowd. If the lack of finances has always held you back, you don’t need to do so any longer. A travel loan can finally give wings to your much-awaited travel plans.
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1. Fulfill your vacation dreams
You can opt for a Travel Loan online easily within a matter of minutes once you get approval from a lender of your choice. While traditional lenders may not dole out personal loans for travel, you could easily avail of a short-term personal loan for your travel finance by applying online.
If you are looking for a travel loan for a student or a travel loan for a professional in particular, you can approach leading Non-Banking Financial Companies (NBFCs) that offer the amount you need for the tenor of your choice, along with a customized loan repayment schedule.
2. How to check eligibility
Like any other personal loan, you can also check your travel loan eligibility online by using a personal loan calculator. The interest rate on such loans, however, ranges between 15-24% (depending upon your credit score) with an additional processing fee of 1-2% of the loan amount.
Your credit score is a three-digit score computed by a credit bureau that uses an algorithm to arrive at the number, based on your credit handling records.
3. Your credit score matters
It is thus in your best interest to maintain a satisfactory score of 750 and above (out of 900) to avail a personal loan at a competitive rate of interest. In fact, a good credit score is mandatory for all forms of credit as lenders refer to it widely to assess your creditworthiness.
Basic financial discipline such as making timely repayments on your existing lines of credit, staying within the limit of the total credit made available to you works towards keeping your credit score high. Further, by making regular repayments on your travel loan, you can enhance your credit score too.
4. Where travel loans score
There are other benefits of taking a travel loan to finance your vacation. Firstly, it is easy to fit into your budget, as you know the exact repayment schedule and amount. You can thus plan your budget accordingly based on your repayment schedule. Secondly, a personal loan is considerably cheaper as compared to loading your expenses on a credit card.
Where not only will you be under pressure to repay the entire outstanding amount within the billing cycle, but you also end up paying nearly double the rate of interest annually. Thus as you can see taking a small personal loan in the form of a travel loan can indeed make your vacation dreams come true.
You can opt for a travel loan from financial institutions to plan your upcoming vacation. You can also avail pre-approved offers on personal loans, home loans, business loans, and a host of other financial products. Not only does this simplify the process of availing your loan, but also helps you save time.