In today’s time taking off a break from work and travelling places with your loved ones is essential to help you relax. But if you have been dreaming of a holiday and don’t have enough funds to take care of the expenses, then its time you opt for a holiday loan to travel to the destination of your choice.
Be it travelling for business or leisure purposes to an international or Indian destination, a holiday loan can help you finance your travel with ease by giving you quick access to funds.
Especially, when travelling abroad, a bad financial situation a spoilsport and can lead to quick cancellation of the plan or land you in trouble in any foreign country.
Therefore, at such times of urgency, a travel loan can be of great help to you by helping you take care of all emergency financial situations. There are numerous benefits of availing of a travel loan as it can help you easily take care of all your travel-related expenses.
Read this article to understand how availing of a holiday loan can help you plan your first trip abroad.
What is a Holiday Loan?
A holiday loan is a type of unsecured personal loan that can be taken to handle all travel-related expenses. The loan amount can help you cover all the costs related to your holidays such as travel tickets, accommodation, shopping, travel accessories and others.
The loan also helps you cover medical costs or costs of any other emergency situations like loss of phone, passport and other expenses that need quick financial aid.
A personal loan for holiday is offered without any collateral i.e. it does not require you to keep any asset as security to the lender and is offered based on your eligibility criteria and credit score.
Several factors such as your age, income, employment status, residency status and others play an important role and help lenders determine your eligibility.
Therefore, it is always important that you go through the eligibility criteria mentioned on the lender’s website before applying for a loan. You can also use a personal loan eligibility calculator that helps you get an estimate of the travel loan amount you are eligible to get from the lender.
Benefits of a Holiday Loan
1. Flexible Repayment Tenure
A trip abroad would cost you anywhere between Rs. 1 lakh-25 lakhs depending on the location and the number of days you are travelling. At such times, if you don’t have enough funds in hand, then you can opt for a travel loan and repay the lender back in flexible tenures ranging from 6 months-60 months.
The loan tenure varies from lender to lender but is usually between 12 months-60 months. The loan amount you take can be repaid in EMIs at low-interest rates starting from Rs. 2500/lakh.
2. Minimal Documentation
Lenders in India today offer holiday loans online, thereby making it easy for you to submit documents and get quick disbursal. The online loan application process does not require you to do any paperwork as you can easily upload the documents online in JPG or PDF format on the lender’s app or website.
To get a personal loan for a holiday, you have to submit documents like your identity proof, address proof and income documents. Additionally, you can
3. Collateral-Free
One of the primary benefits of a holiday loan is that the loan amount is offered to you without having to risk any of your assets. This is because a personal loan is of an unsecured type that increases the risk on the lender’s side due to which the interest charged for this loan type is generally higher than that of a secured loan like a car loan, home loan and others.
Even if you are stuck in financial trouble abroad, then you don’t have to worry about arranging assets and risking them to get the loan amount.
4. Low-Interest Rate
Instant personal loan for travel is offered at low-interest rates starting at 10%-18%. The interest rate offered for your travel loan may vary depending on your lender and credit eligibility. If you have a high credit score, then the interest offered to you is likely to be low as your score reflects your repayment behaviour. On the other hand, a low score can lead to loan rejection or approval of the same at a high interest rate.
5. Increase Your Credit Score
Getting a travel loan is one of the best ways to increase your credit score. If you repay the loan amount on time and don’t default on any of the EMI payments towards the loan and credit card, then you are likely to secure more unsecured credit in the future. Remember, lenders consider your credit score to be an important criterion when assessing your loan application. If you default on the EMI payments.
Conclusion
Getting a hassle-free holiday loan from Upwards for your first international trip is the right choice considering the above benefits it provides. Also, when travelling abroad it’s imperative that you ensure your plan with a travel insurance plan and plan your budget well in advance to ensure you don’t land in any financial trouble in the future.
