Should You Take a Personal Loan to Cover Your Holiday Expenses?

From time to time, everyone feels the need to take a break. There is no better way to escape from your routine than go on a vacation. But what if you are short on funds? Well, before you cancel your plans, you can consider taking a personal loan for a holiday trip.  

Financing your trip with a loan does not have to be burdensome. Read this article to learn all about travel loans and when they can be a good option. 

When should you take a personal loan for a holiday?

Vacation loans are just another category of loans for personal use. They are unsecured, quickly disbursed, and require minimal paperwork. They are ideally suited for the following situations: 

1. Suppose you have a once-in-a-lifetime opportunity to travel to your dream destination, but you do not have the means. In such cases, you need not cancel your trip or endure a long wait for another chance. A travel loan can bridge the gap, and you can enjoy a memorable holiday. 
2. Taking a loan is also a convenient method to arrange funds for a last-minute trip. You can enjoy your holiday without worrying about the repayment and cover the expenses in small, affordable EMIs. 
3. You can also fund your holiday partially with the loan. Plan your itinerary and chalk out a budget. If you see a shortage of money, opt for a personal loan to top up your vacation’s budget. It can cover hotel stays, travel tickets, and other miscellaneous expenses. 
4. A travel loan can also be helpful if you need to extend your trip due to unforeseen circumstances. It can provide you with quick cash to cover additional transportation or accommodations expenses.

Additional Read: Top 7 Safe Holiday Destinations to Visit in India in 2021

What to do before availing of a holiday loan?

Once you have chosen your holiday destination and made your travel plans, here is what you need to do.

1. Research lenders

The loan terms for travel loans vary among lenders. Research and compare the interest rates, processing fees and charges, and loan terms to find a lender that meets your needs. 

2. Check your eligibility

Different financial institutions will pose different criteria for approval. But you’ll mostly have to fulfil minimum qualification criteria for age, work experience, monthly income, employment stability, etc. Make sure you tick off all the required conditions to enjoy a smooth borrowing process. Besides, your eligibility improves if you have a good credit score and a stable income. 

How to apply for a travel loan?

Once you have chosen a lender, follow the application process on their website or give them a call. You will need to submit a duly-filled application form and attach certain documents, such as: 

• An identity proof (Aadhar card, Voter id, Passport)
• A residence proof (Electricity bill, Phone bill)
• An income proof (Salary slips, Bank statements) 

And, you’re done!

Additional Read: Holiday Plan Got Cancelled Due to the Lockdown? Pick Up Where You Left Off

Your turn

Ready to enjoy your dream vacation? Tata Capital offers you attractive personal loan interest ratesand flexible repayment options. Visit our website to learn more, and apply online for a travel loan within minutes.