The market of personal loans in India for travel purposes witnessed a growth of 85% in 2018 compared to the previous year. The main reason behind this growth is the easy availability of such credits from various financial institutions.
The realisation of the need for a balanced lifestyle among individuals has also contributed to the massive rise in numbers of travel loans in India. Many individuals are now availing such credits to fund their domestic or international travel to take a break from their hectic daily lives.
Here is a list of reasons why a personal loan for travel is a good idea for individuals.
1. Substantial Loan Amount
Financial institutions can offer an amount of up to Rs.25 lakh in case of a travel loan. It comes with no end usage restrictions, and borrowers can use the amount to fund any of their travel expense, including airplane tickets, meals, shopping, etc.
However, borrowers should not avail a loan amount more than they need as it can create an unnecessary financial burden on them.
2. Instant Approval And Disbursal
Financial institutions have significantly simplified the process of availing a travel loan in India. Borrowers need just to visit the website of the lender and fill an online application form. They can expect instant approval within 5 minutes of application.
They need to submit the required documents after approval. Some financial institutions offer loan disbursal within 24 hours. This facility ensures that a traveller can meet last-minute plans and emergency situations.
3. Flexi Loan Option
Travellers may not always be sure about the exact funds that might be required for a trip. Expenses related to food, transport, shopping and others may vary from the initial estimate. Borrowers might even need additional funds in case of emergencies that are not included in the initial budget.
Bajaj Finserv offers the flexi loan facility on such credits along with a wide range of other benefits. The benefits they offer include competitive travel loan interest rates, online loan account management and more.
The Flexi loan facility entitles a borrower to withdraw the disbursed amount according to their needs. They will have to pay interest only on the amount they use from the disbursed amount of their travel loan in India. Also, they can pay interest-only EMI and pay the principal amount at the end of the tenor. Furthermore, they can avail part pre-payment or foreclosure facilities without any penalty against such advances.
They also provide pre-approved on travel loans to simplify the process and to reduce the time required to avail them. Pre-approved offers are valid on various financial products and services including secured home loans and even on unsecured advances like business loans and personal loans. You need to share a few necessary details online to check out the pre-approved offer.
4. Extensive Range of Tenor Options For Travel Loan in India
Borrowers can avail a loan with tenor for up to 5 years. They should choose a loan tenor which is suitable according to their needs. Lenders can charge a higher rate of interest for a loan with longer tenor as it increases their risk factor.
A longer loan tenor may reduce the immediate burden of EMI’s on an individual, but it considerably increases the interest part associated with a loan. On the other hand, a shorter tenor reduces the total cost of a loan, but it can create a massive financial burden due to the high EMI amount. They can develop a proper repayment strategy by determining the right loan tenor that works for them.
5. Minimal Documentation
The minimal documentation requirement is another reason why borrowers prefer personal loans for travel to fund the expenses of their trip.
The Required Documents Are As follows-
- KYC documents such as Aadhaar card, voter ID card and driving license.
- Employee ID.
- Salary slips of the previous 2 months.
- Bank statements for the previous 3 months of the salary account.
The points mentioned above will help you decide if availing travel on a good idea for you. Make sure that you are entitled to avail using a travel loan calculator.
