Taking into account the improved disposable income, a rise in purchasing power, and the ease of availability of several financing options, Indians are witnessing more travel plans. Travel loans are personal loans, designed exclusively to help frequent and infrequent travelers finance their trips.
But before you embark on your journey with a travel loan, you need to research and understand what constitutes a travel loan, to evaluate if it suits your needs well. To help you, we have compiled a list of things to know about travel loans in India, including:
9 Essential Aspects of Travel Loans in India
1. Expenses covered
Apart from your travel expenses like air or train tickets, the travel loan will also look after your food, accommodation and sightseeing charges. Keep in mind that the location does not affect this aspect since you can use a travel loan for both national and international trips.
2. Interest rates
Like any other loan, it is wise to compare the interest rates offered by various travel loan providers before choosing one. Finer details also demand your attention, such as the presence of a prepayment fault charge, or a processing fee for the loan. These can affect the total cost of your loan directly.
3. Instant loans
It is crucial information that a lot of people do not know but travel loans are available even a day before you plan to take the trip. You can apply online for instant travel loanswith MoneyTap. These are instant loans that you can get approved quickly within five minutes and receive the money in your account in the next 24 hours.
4. A better choice against credit cards
With cheaper interest rates and hassle-free credit card activation to support international tours, a travel loan is the most sought after financial variant. It is proven to be better than credit cards since they arrive with an added burden of the processing fee, higher interest rates, credit limitations, etc.
5. Loan amount and duration
The easier availability of travel loans can become a financial burden very soon by triggering a debt if you do not evaluate your financial standing and the loan amount beforehand. Taking an excessive loan for your trip can hamper your repayment leading to an inadequate debt-to-income ratio. So have a thorough understanding of your needs before applying for the travel loans.
6. Unsecured loans with no guarantor and minimal documentation
Yes, it is true. Travel loans in India can be obtained without security or collaterals and require minimal documentation, making it easier for people to make use of them. The only essential documents that you will have to submit are proof of identity, address, and employment.
7. Online loan application
With the digitisation of the loan procedures, it is easier than ever to apply for your travel loans without having to visit any branch. You can submit your documents online on the lenders’ website from the comfort of your home.
Most travel loan providers in India function with a locking period, prepayment penalty and forclosure charges which you need to analyse and clarify before signing-up for the loan to understand the repayment procedure well. Essentially, look for travel loans with a flexible repayment alternative to lessen the financial burden.
9. Post-sale service and transparency
Transparency and readily approachable customer service are crucial factors to consider when choosing a travel loan in India. If you are applying for your first travel loan, request your provider to notify you about all the deductions made from your loan account.
Your dream of traveling should not suffer because of a lack of enough finances, choose a suitable travel loan, and make it happen!
Gulshan Bafna is one of the luxury travelers in India. He, along with his wife, has traveled to many exotic places that one could dream. With their travel journey, they bring us the best face of those places. He compiles all of his travel journeys to give the taste of traveling to his readers. In his writing, he jots down the best things to do in all those places that he has visited. Reading these would help one know better about the place. He is also a seeker who loves exploring and discovering new places and share his experiences with everyone.