Almost every individual wants a memorable travel adventure to their favourite destination. It can be exploring the sun-kissed beaches, majestic mountains, the places known for rich cultural heritage, or other captivating destinations domestically or abroad. Today millennials are more proactive in executing their travel plans. One of the reasons is the availability of instant personal loans for travel with a host of benefits.

The personal loan retail lending sector recorded an impressive growth of 57%. NBFCs (Non-banking Financial Companies) account for a significant growth of 35% during the year ending December 2022. Also, there has been a surge in personal loan disbursements. Recent reports show that around Rs.100 lakh crore was disbursed in the retail loan sector in 2022. 

Here is why most individuals find a personal loan for travel a convenient financing option.

Key Benefits of a Personal Loan for Travel

Following are the key advantages of a personal loan to make your next trip an amazing experience:

  1. Financial Flexibility

There is no restriction on the end-use of the loan amount. A personal loan for travel covers various expenses, including accommodation, fare, dining, etc. Also, the loan amount can be as high as Rs.25 lakhs which allows you to finance your travel expenses without upsetting cash flow or depleting your savings. Hold your savings to maintain a financial safety net for unforeseen occurrences. 

  1. Financing Option Without a Collateral

A personal loan for travel is an unsecured loan. Lenders do not need you to put your valuable asset as collateral against a loan. Meet the eligibility conditions, and apply online to complete easy personal loan process steps with just the necessary documents and get approved for a personal loan for travel. 

  1. Low-Interest Rates

Lenders look for an excellent credit score (750+), a source of regular income, and sound creditworthiness with a spotless credit history to approve an instant personal loan. Individuals with strong financial and credit profiles can enjoy a low-rate personal loan for travel. Also, applicants approaching a lender with which they maintain an existing relationship may get a pre-approved personal loan at an affordable rate. Financing can be affordable with low rates – as low as 11.99%.

  1. Simple Eligibility Parameters 

Reputed lenders aimed at serving more customers keep the eligibility criteria simple which is easy to meet. Common parameters are as follows: 

  • An Indian resident working as a self-employed/salaried person can apply for a personal loan for travel.
  • The age limit is 21-60 years. 
  • The applicant’s monthly income should be Rs.25,000 if residing in Delhi and Mumbai. For other states, it is Rs. 20,000. For self-employed and business owners, the minimum limit for annual profit tax differs depending on the industry.
  1. Quick Access to Funds For Prompt Execution of Travel Plan

The lending landscape has evolved using the latest technologies. Now personal loan processing is swift and hassle-free led by various factors. 

  • Making a loan application is a streamlined process. Customers can apply online within a few minutes. 
  • There is no need to complete lengthy paperwork. 
  • There is no need to make even a single visit to the lending institution. 
  • The applicant can receive the loan amount in the provided bank account within a few hours of loan approval.
  1. Helps to Boost Your Credit Score

A credit score is calculated based on credit mix, repayment history, credit age and other financial factors. When taking a personal loan, act responsibly to boost your credit score in the following ways:

  • A personal loan helps borrowers diversify their credit mix which indicates their ability to handle different types of credit responsibly. 
  • Make timely payments to show responsible financial behaviour. It will help to make a positive credit history that can boost the credit score. 
  • Also, when you secure a personal loan, it is a new account on your credit report that will contribute to the overall credit age. The longer the credit history or age, the better the credit score.
  1. Potential for Lower Monthly Payments 

Unsecured personal loans for travel are available with convenient repayment options – 12-60 months. Customers can plan loan repayment efficiently with a suitable tenure. Considering the cash flow and monthly budget, select a loan tenure and complete personal loan process steps. If managing a high monthly instalment is challenging, borrowers can consider a longer-term loan. 

Suppose a borrower needs a loan of Rs 1 lakh and choose a tenure of 60 months. The monthly instalments will be as low as Rs.2,224. Customers can utilise a free online calculator at the lender’s official website and calculate the loan EMI beforehand to make informed decisions. 

If your budget allows, choose a shorter-term loan to get rid of debts sooner and save on overall interest costs.  

Thus, apply for a personal loan to turn your travel dreams into reality with the benefit of affordability. Whether you are a solo traveller or want your next travel adventure with your family, you need not compromise as you can easily secure the required funds.

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