The new generation has an inherent need and want for traveling and exploring the world. However, financial constraints can often put a break on many a dream when it comes to traveling. There is, however, a silver lining to this. Thanks to easy travel loans, you don’t need to put your travel dreams on the back burner just yet. A travel loan can allow you to see the world tension-free, without burning a major hole in your pocket.
According to a Livemint article, Pranjal Pachpure, 32, a Jalandhar based professor decided to take his spouse on two vacations – one to Himachal Pradesh – and a longer one to Kerala. The entire trip cost him approximately ₹1.8 Lakh, which he decided to pay through his credit card. The payment was broken up into five to six monthly installments with a 7% interest rate. According to Pachpure, they usually try to find EMI alternatives to manage their funds rather than deal with a crunch when it comes to liquid funds. He added that his friends also follow similar methods of financing their holidays.
Everyone requires a break in their daily life and to break the monotony, many people opt for vacations within the annual time period. It not only helps to rejuvenate and relax the body and mind but also opens up new doors and horizons. However, funding these vacations can sometimes become a burden and that is where travel loans come in. Recent surveys across several travel agencies and enterprises have shown that there has been an almost 60% increase in the number of tour loans that are being taken. A significant majority of these loans are taken by millennials within the age group of 25-35-year-old, and the amount taken can range from anywhere between ₹30,000 to ₹2.5 Lakhs.
If you are considering taking a travel loan for your upcoming vacations, this is how it can benefit you:
- Travel tickets
- Visa fees
- Local transportation
- Emergency funding
How Can I Apply for a Travel Loan?
In order to understand how much money is required for your vacation, it is important to first make a detailed budget of all your expenses related to the travel. Here are a few tips on how you can make a detailed budget:
- Do thorough research on your desired destination – Thanks to social media and several online blogs and travel platforms, you can have detailed information on your fingertips. Speak to family and friends who have been to that destination and research on travel forums to understand what the average daily cost is of being in that particular destination. This will no doubt help you make an informed decision
- Make a detailed budget of your entire travel – To come up with an accurate figure on what your expenses will look like, chalk out the per day and overall cost of travel. This includes hotels, flight tickets, visas, food, sightseeing, shopping, etc.
- Keep a separate fund for contingencies – Sometimes during travel unexpected situations or emergencies can arise. Always keep a 20-30% buffer in your travel budget for such emergencies.
What are the benefits of taking a travel loan?
A travel loan can benefit you in several ways which other financing options may not. These benefits are listed below:
Benefits of a Travel Loan
|Inexpensive EMIs||A travel loan can benefit you even with a large amount of money. This can easily be done through easy and affordable EMIs. For example, even if you take a loan of Rs. 2 lakhs, you can end up paying an EMI of only Rs. 3000 per month. Just make sure that you take a longer tenure of repayment. Even though your interest rates may be slightly higher, it will definitely not burn a hole in your pocket in the long run. |
|Nominal documentation||For availing a travel loan, you require just a few basic KYC documents. There is no need for extra or unnecessary documentation.|
|Fast handling & sanction||This is very beneficial to a traveler as many holiday expenses need to be booked and paid in advance. Travel loans can be approved and deposited into your back account in three days or less!|
|No collateral mandatory||Most traditional ways of getting a loan requires one to provide some sort of collateral against the loan. This means that a person needs to pledge some assets of equivalent amount against the loan. Many people do not have such kind of assets and this can become a huge inconvenience. However, travels loans are usually supplied for online lenders which are unsecured and therefore do not require any collaterals making it very easy for travelers.|
|Better option than credit cards||Credit cards have a fixed limit and may not be able to cover all the expenses of a vacation. Besides, the interest rates are very high. Travel loans allow you to repay at your own convenience with flexible EMIs and low interest rates.|
|Increases credit score||When a borrower takes a large credit, it can positively or negatively affect the credit score. In case of a travel loan, it helps to build the credit score. This in turn can help the borrower avail loans at a lower rate of interest and better repayment options. Therefore, a travel loan can not only help positively with your credit score, but also helps in availing personal loans. This of course is dependent on the fact that you make your EMI payments on time every month.|
Everyone today has a need to travel and because of this travel agencies are on the rise. Travel agencies can help create a relaxed and unique travel experience for you. As such, travel agencies too need to update themselves for new methods of marketing or to hire new employees with expert services. As a small business enterprise, you may require a business loan for your travel agency to help realize your potential. There are many different options for travel agency business loans available today such as SBA Loans, Term Loans, Line of Credit, APR Credit Card and Merchant Cash Advances. There are several reputed online agencies where one can apply for a travel agency business loan with minimal paperwork and zero collateral. The application is approved fast and the one can avail the loan in 3 days or less. Such business loans for travel agencies can no doubt help fuel their growth and also in turn help them to provide travel loans to their clients.
Travel loans and tour loans are a great way to become responsible with finances. Getting a loan today is very easy compared to traditional methods. It is no longer a financing option just for millennials. As long as you are responsible enough to pay the EMIs on time, it is a fantastic option for anyone seeking to travel freely without any stress and finance their vacation with inexpensive monthly installments over a long time period. So, don’t let finances diminish your wanderlust and your travel dreams. Now anyone and everyone can take a vacation whenever they desire and to whichever part of the world.