A personal loan is a form of unsecured loan where individuals can avail loans from various banks and NBFCs (Non-Banking Financial Organizations) to meet their long term or short-term goals. One can avail of the personal loan based on factors such as credit score, income level, repayment capacity, credit and employment history, etc. Unlike home loans and car loans, no asset is required to secure a personal loan. Besides, as no collaterals are involved, in case of any default, the lender cannot auction anything. When all these benefits are used to sponsor a vacation, one can surely ensure a merry and healthy vacation.
Personal loan for Vacations
Previously, people planned and saved the entire year to sponsor the annual trip with the family, which are supposedly the best memories that we have grown up with. However, today’s generation does not want to wait for the entire year to save and fund their holidays. Being the ones who have grown up believing the carpe diem philosophy, they would rather opt for a personal loan to enjoy a trip that they have planned than wait for a long period to gather funds.
From enjoying a dreamy vacation in Switzerland to having a trip to the exotic locations in the Maldives, one can easily avail of a personal loan to finance their trip. You can budget everything from your stay to the flight tickets with the help of personal loans. To make your repayment process easier, you can use a personal loan EMI calculator to know the EMIs you need to pay on a monthly basis.
Reasons Why you Should Consider Funding a Holiday with a Personal Loan
It has already been clear that personal loan has several benefits to be chosen as the basis to finance your planned vacations. But, before you decide to apply for one, you need to make sure that you are aware of all the benefits. Some of these advantages are:
Competitive Interest Rates
Interest rates on a personal loan are taken to finance a vacation that is comparatively lower than Credit Card loans or repayment of a credit card. However, this is mostly true when the loan is taken in big amounts. In many cases, the interest rates on travel loans can be as low as 11%. But one needs to note that interest rates charges highly depends on the factors, such as income level, credit score, relations ship with the lender in terms of previous loan repayments, credit cards, etc. and the loan amount along with the tenure. You can resort to a personal loan EMI calculator to have a fair idea.
Includes All Travel Expenses
Many people still believe that the loan will only include ticket expenses. But, a loan can be used to sponsor your accommodation, excursions, food and even sightseeing. There are no restrictions on how you can use a personal. It can be used to finance both your domestic and international vacays.
One more reason, why people opt for a personal loan to sponsor their vacations is due to minimal documentation associated with them. Most of the reputed lenders in the market provide travel loans with hassle-free documentation. However, few documents like identity proof, address and employment details are essential while applying for a personal loan.
Provision of Instant Loan
You can take a year to plan a trip or it can just be an impulsive decision to go on vacation with friends. But, whatever may be the case, travel loans can be availed instantly. An applicant can be approved for the personal loan within 5 minutes and the loan amount reaches the borrower’s account within 24 hours.
Most lending organizations provide travel loans to the customers with a flexible tenure for the repayment of the loan. The loan tenure generally ranges from 3 to 36 months. So, you have the choice to repay the credit according to your time. You can also calculate EMI on personal loan when you know the tenure and the interest rates to plan the way you want to repay the credit. You can use the personal loan EMI calculator to know the EMIs you need to pay on a monthly basis.
Having a personal loan for a longer tenure also helps to improve your credit history. As the improvement of credit history involves a long period, so, availing a personal loan for a long period and repaying them with discipline helps you build a good one.
Nowadays,very few numbers of people can afford to have vacations to different destinations and have a gala time with their friends and family. But, with the passage of time, generations have come up where they are trying to make their present memorable than waiting a long period to gather the funds. Opting for collateral-free travel loan is the best option available in such cases. Moreover, having many benefits associated makes it one of the best choices among individuals. However, before availing a loan to finance a vacation one needs to make sure that he has the ability to repay the loan amount. To have a fair idea of that, one can easily calculate the monthly EMI required using a personal loan EMI calculator and then decide accordingly.