There is a hidden traveler in each one of us who wants to travel around the world to visit beautiful places, but we step back just because of financial constraints. For this situation, a travel loan has come up as a reliable option that can cover all our expenses and can allow us to embark on our dream vacations without the worry of its cost. In India, travel loans have become a popular option that offer quick and easy access to funds. Loans that fund the holiday expenses are a boon to the travelers who want to go around the world to explore its nuances. This article will guide you through everything you should be aware of when it comes to travel loan in India and how to use them to turn your travel dreams into reality.

What is a travel loan?

Travel loan, often referred to as a holiday loan, is a type of personal loan made specifically to cover the travel expenses. This loan covers different travel related costs, such as airfare, accommodation, sightseeing and shopping. Borrowers do not have to show an asset as a collateral to apply for travel loans. Banks and NBFCs provide instant travel loans for traveling purposes. Travel loans can be taken with minimal documents and low interest rates. The interest rate for personal loan for travel starts from 10.40% * P.A. Borrowers should have KYC documents, income proofs, and stable employment proof to get loans approved by reputed banks and NBFCs.

Why to get Travel Loans?

There are many reasons where travel loans can be a very convenient option to cover holiday expenses. Apply for a travel loan online from the comfort of your home with minimal documentation and travel around without any financial constraints.

1.Flexible Repayments- Lenders allow borrowers to choose flexible repayment options in terms of repayment. Lenders understand that every individual has different financial constraints and on the basis of that they provide different repayment options. Borrowers can choose repayment options according to their financial situation.

2. No pressure on Savings- Travellers can enjoy their passion without using their savings. Travel loans can cover the expenses of holiday and travel purposes. Savings of the borrowers can be used for future investments and they can explore the world with the help of travel loans. From booking flights to paying for accommodation and activities,a travel loan can cover all aspects of your holiday.

3.Minimal Interest Rates-People always assume that loans levy heavy interest rates on the principal amount but on the contrary travel loans provide disbursal of loans at affordable interest rates. Lenders also allow borrowers to opt for interest rates that are convenient to them according to their budget. With travel loan travelers can ace their travel journey without any stress in relation to budget.

4.Quick Disbursal of Loan- Many financial institutions in India, offer travel loans to the borrowers. There is a minimal paperwork required to apply for the travel loans and it is approved at lower interest rates. Many financial institutions allow people to apply for travel loan at the comfort of their home and get instant approval. The process of getting loan approved is a easy process that allows quick access to funds.

5.Easy Process-With everything at digital presence allows borrowers to apply for travel loans online. There are a few documents required and the process is instant which allows the borrower to easily go through the application process. The verification of documents is a step where lenders reviews the profile. Then borrowers receives the quick disbursal of amount.

6.Good Credit Score-Timely repayment of a travel loan can boost your credit score. The repayment of loan shows the financial discipline of the borrower. The reliability of the borrower helps the credit scores to get better.Good credit scores have a pros that they help you get the loan approval not only that, they also allow you to get lower interest rates over financial offerings.

Types of Travel loans in India

In India travel loans can be classified in various categories on the basis of the lender and the loan structure.

Bank Travel Loans-Traditional loans offered by banks. These loans give competitive interest rates and longer tenure. These loans might come with the extensive documentation to apply for a travel loan.

NBFC Travel Loans-The non-banking financial institutions offer travel loans with flexible options. The NBFC provide a lot of flexibility and provide instant disbursal of loans but the interest rate can be a bit higher.

Online Travel loans-In the growing world of fintech, online travel loans are quite a popular type of loan that borrowers can avail. Platforms like MyMudra, Moneytap and others can provide instant travel loans with less documents and quick approval of loan.

Credit Card Loans-Some credit cards also offer travel specific loans to the borrowers with easy EMI options. This easy and convenient way of getting a travel loan can cover your travel expenses and let you enjoy your journey without any financial stress.

Steps to Apply for a Travel Loan

Applying for a travel loan in India is an easy process, especially with the availability of online options. Here’s a step-by-step guide:

1. Research and Compare Lenders: Compare different lenders on the basis of interest rates, processing fees, loan tenures, and other terms. There are comparison tools online through which you can go through all the terms of various financial institutions and then go with the one that suits your demands.

2. Always check Eligibility: Borrower should always check the eligibility criteria that is set by the lender that includes age, income level, and credit score. If you meet the eligibility criteria then you are liable to apply for a travel loan

3. Calculate Your Loan Amount: Always calculate your expenses in relation to your travel plan, it should include everything from booking flights to paying for accommodation and activities. Borrower should apply for the amount that is needed to cover the expenses. Overborrowing can land up borrower into the trap of debt.

4. Submit Documentation: Lenders require basic documents such as identity proof, address proof, income proof, and bank statements. Those documents can be uploaded digitally in order to get a travel loan.

5. Approval and Disbursal: Once borrower application is reviewed and approved, the loan amount is disbursed to their bank account. With instant travel loans the approval process is easier and the disbursement is quicker.

6. Repayment: After the enjoyment of the trip, the borrower should repay the loan in time. The timely repayment ensures borrowers reliability to lenders. It will also impact the credit score.

Eligibility Criteria for Travel Loan

Securing a travel loan is a simple process with easy criteria.

1.Age: The age should be between 23 years — 65 years.

2 Employment: The applicant should be a salaried employee or self-employed.

3.Credit Score: The credit score should be 750 or higher.

4.Salary: The monthly salary should be minimum 22,000 depending upon the city of residence.

Documents required for Travel Loan

Applicants should have the following documents to establish their identity, place of residence, income and repayment capacity.

Identity Proof:(Aadhar Card, Voter Id, Passport, Pan card)

Address Proof:(Electricity bill, Gas bill, Telephone bill, Voter Id, Passport, Pan Card)Simple Documentation-

Last salary slips

Last 3 Months bank account statement

Employment proofs

Latest ITR or Form 16

Key Factors to keep in mind while choosing Travel Loan

While a travel loan in India can be a great way to fund your dream vacation, it’s crucial to choose the right loan. Here are some factors that can be considered:

1. Interest Rates: Compare the interest rates offered by various lenders. Interest rates affects the

2. Loan Tenure: Borrower should also focus upon the tenure of the repayment of the loan. If the tenure is short then the interest rates will be lower. Timely repayment of the loan also showcases the financial discipline. It builds trust between lender and borrower. Moreover it helps in quick approval of the loans.

3. Processing Fees: Some lenders charge extra as the processing fee that may affect the overall cost of the loan. Borrower should keep in mind this factor while they are applying for a travel loan so that they are well informed about the process.

4. Prepayment: If a borrower is planning the prepayment of the amount it is advisable to see that the lenders have levied any charges related to prepayment.

5. Hidden Charges: Always read the terms and conditions of the financial documents to ensure there are no hidden fees or charges that could increase the loan burden.

6.Customer Service-Go for lenders that offer good customer service, it is very important when you are applying online. Spontaneous support can be useful while you are applying for loan online. It plays a crucial part to resolve the issues encountered online.