We all need vacations in life for that quick recharge. Some vacations are planned, and some are unplanned. Back in the day, most of us would opt out of an unplanned break for lack of money. But today, many online personal loans are available with fixed interest rates on loan apps. You can also apply for a personal loan without proving your credit score or income. Add up all costs – ticket costs, entry tickets to monuments or parks, food, including hotel reservations and car rentals, and you have an approximate cost of your vacation. If you can’t pay cash for everything right now, a personal loan may be just the thing to help ease some financial stress and make that much-anticipated getaway possible.
Here’s what you need to know about getting a personal loan for a vacation:
Is there an Online Personal Loan for a Vacation?
Yes, there are online personal loans. People use personal loans for a variety of reasons. For example, you may want to visit your family or new job location. You might also need to go on a short trip for work or take care of an urgent financial problem. A quick personal loan can help you cover the costs. This type of loan is best for people who are in financial need.
Types of Personal Loans
Even among personal loans, there are types of personal loans, namely the following –
- Secured or Unsecured: Secured loans come with an agreement by a third party (a guarantor or collateral) that ensures repayment if you default on the loan.
- Unsecured loans are riskier, as there is no guarantee of repayment. If you default, you lose the total amount of the loan. Secured loans are a good choice for someone who will pay the loan back in full and on time.
- Cash Advance: These are short-term loans typically for one to three months. They have high-interest rates, as you’re often charged interest plus a service charge for the convenience.
Debt Consolidation: This type of loan combines three or smaller loans into one larger loan at a lower interest rate. It can help you reduce your debt and pay off your loan faster. This type of loan is best for someone with a steady income and good credit who is not in a hurry to repay the loan.
How to Find a Personal Loan for a Vacation
There are plenty of options for finding a personal loan for a vacation. You can go online and search for online loan apps. Online loan apps are convenient. You can apply for a loan online on the website or app of the lender. Check the personal loan eligibility conditions – only if you fulfil them on terms like a good credit score should you apply for the loan. Your loan app will prompt you to upload the necessary documents for identification and verification. If everything is satisfactory, your loan application should be approved sooner, and the cash remitted to your bank account.
Comparison of Interest Rates for Personal Loans
If you have collateral (like a house, car or piece of jewelry), you might be able to secure a lower interest rate. However, the interest rate on your loan will depend on the following factors: how much you borrow, your credit score, your repayment period and whether you have any collateral. The average interest rate on a personal loan is around 10%.
Pros and Cons of Personal Loans
When your loan application is approved, you are providing credit details enabling your credit profile and worthiness. This means there will be credit checks. For example, if you are a first-time borrower, your credit score will be nil, and a personal loan will help you build your credit score. However, if you have defaulted on repayments of loans in the past, there will be the risk of a low unhealthy score. In such a case, you likely won’t get the lowest interest rate, and you may have to pay a higher interest rate if you don’t have any collateral to back the loan.
Best Financial Tip for Getting a Personal Loan for a Vacation
Checking personal loan eligibility and finding a low-interest online personal loan for a vacation can feel like an impossible task. You may even get dejected because interest rates are too high, or you simply can’t find any loan options. For best results, follow the following easy steps:
- Look at verified online loan apps and sites until you find one that offers the best deal.
- Compare interest rates and fees to find the best online personal loan that is the best deal for you.
- Remember to include every cost in your vacation budget. Then, once you’ve got that budget, you know how much you can borrow.
- Make sure you have enough cash saved for any unexpected expenses.
A vacation is an incredible way to relax, unwind and get away from work and other daily stresses. But, if you can’t afford to go on a trip just yet, an online personal loan may get you there. You can get a loan without proving your income or credit score. And, you don’t have to pay it back immediately. A cash advance is a great option if you need a short-term loan. And, if you’re planning a long-term trip, a debt consolidation loan may help you save for your vacation.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs