Are you a travel enthusiast? If yes, this article is for you! Everyone needs a vacation at some point in a year, perhaps the minimum being twice a year. Ideally, if you are planning a vacation each year, you would have enough money to travel. Many of us have travel dreams waiting to come true but are not saving up enough to achieve those dreams. The toughest obstacle to deal with planning a vacation is the lack of enough funds. While saving up is always the best option, for some of you, taking a travel loan can be the most convenient option.
Taking a loan is a great way to achieve a short-term goal. Just like how you’d take a personal loan for your wedding, similarly, you can take a loan to help you see the world as well. Loans usually offer you better interest and are a much safer way to fund your vacation.
However, it is important that you do approach the process of taking a travel loan sensibly. Today, banks see the yawning gap between customers’ aspirations and reality as a great opportunity, and you need to be very smart to borrow money responsibly. A travel loan is nothing, but a type of personal loan that is only intended for travel purposes. It’s the cost that can cover up your flight tickets, airfares, accommodation, tours or any other travel requirements and accessories associated with your holiday.
Indian millennials are actually finding a lot of options to fund their lifestyle choices. In this digital era, young professionals are seeking ways to borrow money via a digital platform. Several loan lending online companies, like PaySense are targeting a new generation of young salaried, tech-savvy millennials because the approach of traditionally, reaching out to banks is slowly becoming obsolete. Millennials are seen seeking for loans between 30,000 – 3 Lakhs. At PaySense, customers can apply and get instant loans from ₹5000 to ₹5 lakh that suits their needs. The process of applying for a loan through PaySense is quite easy and offers a hassle-free process to get travel loans. Unlike conventional loans from banks which usually require a good credit score too, the travel loans at PaySense does not have such requirements and are offered to first-time borrowers and individuals too.
How Does A Travel Loan Work For You?
A travel loan works the same way as taking a personal loan. You can borrow up to 5 Lakh, depending on your urgency, circumstances and you can choose a loan term anywhere between 1 to 5 years. The amount of your loan will actually determine the amount you’ll have to repay. You can also choose the frequency of your repayments, also known as EMIs – fortnightly or monthly to help you with seamless and smooth cash flow. At PaySense, customers are offered affordable EMI plans which is easy to manage. Taking a loan from this digital platform also benefits you with timely reminders and auto-debit features so there is no fear of missing out.
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How Is Travel Loan Paid?
Customers today are taking loans for luxury trips to say, Europe, USA and require the money instantly into their accounts. The loan when applied is paid to you in a lump sum, which is directly credited into your bank account. This money which is transferred by the bank on request is easily accessible so you can start planning your trip. Every EMI you work towards will be for the initial amount borrowed and the interest.
EMIs are directly debited from your account on a particular day of the month you decide depending on the frequency for the loan. If deciding your repayment cycle is difficult, access the EMI Calculator at PaySense to understand your loan schedule and take control of when to pay.
Benefits Of Taking a Travel Loan
While saving up for your travel plans is the best and does not involve a third party (bank) for borrowing your funds; taking a loan has its benefits too. So, you need not worry instead opt for a travel loan to create those memories that last you a fortune. A potential way to go on a vacation you have been dreaming, benefits of taking a loan for travel are:
- Financial Commitments
- Easy Approvals
- Hassle-free Collection of Documents
- Flexibility to Withdraw
- Convenient EMI plans
The best part about taking a loan is, your EMIs come with fixed interest rate i.e. you can now easily plan your repayment amounts. The interest rate remains the same, so it becomes convenient for you to have a clear structure and you exactly know what your financial commitments look like. At PaySense, you can apply for a loan by filling in a few basic details and get a credit line to exactly know how much you can get. The credit line further helps you choose your loan amount and the duration of your loan to plan your EMIs better.
Once your request for finances are approved, they are generally deposited into your account by the bank directly. The transfer usually takes between 3 – 5 working days or in some cases are made pretty quickly. For a company like PaySense, instant loans are possible. All you need to do is, upload your credentials along with KYC documents and your loan is approved within 2 working days. The best part is, all this is done paperless.
Hassle-free Collection of Documents
Most times, after you’ve learned about our eligibility criteria, the bank will ask you to share a few documents along with your application. This can be tedious which perhaps will make you visit the bank multiple times. At PaySense, you need not worry about the collection of your documents. The platform offers a doorstep service, and you only need to sign and hand over the required documents to get a loan.
Flexibility to Withdraw
Unlike credit cards, a travel loan gives you the flexibility to withdraw money at any time, anywhere without being charged a cash advance fee. Once your loan is approved and the money has been deposited into your account, you can withdraw the cash immediately and also use the cash to plan for the vacation of your dreams.
Convenient EMI Plans
The best part of taking a travel loan is that it allows you to spread out the cost of your vacation across the life of a loan. So, you need not scrimp and save up to go on your trip. Also, with the availability of EMI planners/calculators, you can schedule your loan payments accordingly and need not worry about missing out a date till the end of the loan cycle.
While there are some benefits to travel loans, you should be aware of a couple of disadvantages too.
- Higher costs
Due to the interest charged on the amount of travel loan taken, it is inevitable for the overall travel cost to increase. This could be possible if you have a poor credit score. However, at PaySense, the platform offers instant travel loans even on zero credit score.
- Repayment problems
If you do not time your payments or plan a schedule around the EMIs, it becomes risky which may further get you on debts and also damage your credit score. It’s advisable to use options like EMI calculator on PaySense or on other such digital money lending platforms to understand your loan eligibility.
Which is Better: Travel Loan Or Credit Cards?
While travel loans do not carry much interest rates, credit cards have a higher interest rate. On your credit card’s due date, you will have to make a minimum monthly payment as well. Credit cards do offer flexibility and you can swipe the card as and when you need it. However, with this, it’s best to spend only when you know you can afford to repay each month. Credit cards are usually used for short-term goals or for managing any household expenses. Their benefits are inevitable but can be suitable only if you have great control on your budget. However, before you decide to take a loan or swipe your Credit Card, do remember they are both debts.
Is Taking A Travel Loan A Good Idea? Here Are 5 Easy Tips To Fund Your Vacation
- If you can save up to fund all your travels, borrowing money isn’t an option. To avoid associations with your banks, you could also consider peer-to-peer lending or credit cards
- If you do go ahead of taking a travel loan, borrow a sensible amount that does not land you into debts and you can actually afford to pay back. PaySense’s EMI Calculator can help you work out a loan plan and whether you can afford it.
- It is important to keep all your required documents handy. Most of the lending companies like PaySense offer a hassle-free collection of documents, it’s always better arrange your documents such as bank statements, salary slips, address proof, identity proof, and passport size photos.
- Do choose a loan with flexible loan option to avoid debts and lock-in-periods
- Be a smart budget planner and do not overspend to stay within the budget limit.
Aahna Gandhi is an enthusiast traveller, writer and a PR Professional. She likes sharing memorable moments from her travels and inspire others to live a life full of wonder. Known for her content, she has worked for travel, technology, lifestyle, health sectors as well as finance.
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