Like a wedding day, honeymoon days are also special moments in the life of any married couple. With the emergence of digital-first personal lending solutions, many couples are opting for a Personal Loan to fund their honeymoon expenses. According to a recent study, 22% of newlyweds in India are considering loans to finance honeymoon trips, especially when it comes to international destinations.
A Personal Loan for travel can help finance your dream honeymoon plans and offer the flexibility to repay with affordable monthly instalments. Predictable EMIs make repayments more manageable, allowing couples to enjoy every moment of their trip stress-free. Read this blog to understand why a growing number of millennials in India are financing their honeymoon trips.
Why are Millennials Choosing a Travel Loan for Their Honeymoon?
Millennials spend differently than earlier generations, tending to favour memorable events over materialism. For a lot of couples, a honeymoon is a trip of a lifetime that requires careful planning and the freedom to relax without financial concerns.
Couples can plan their dream getaways using travel loans that assist them in staying financially stable, even incurring significant expenses to fund the trip. Key features of this loan include speedy online approvals, adjustable payback tenures and reasonable EMIs.
Rising Honeymoon Costs
When it comes to popular honeymoon destinations such as Bali, the Maldives, and Switzerland, couples may need to spend anywhere between ₹1.8 Lakh and ₹8+ Lakh. It can be even more than this based on how luxurious the trip is.
The costs of a honeymoon trip also depend on the travel package and duration. In comparison, domestic destinations such as Kashmir, Andaman, or Coorg can be relatively more affordable.
Managing these travel expenses alongside wedding costs can be challenging. This is why many couples opt for a Personal Loan to finance their dream honeymoon more comfortably. Applying early may also help borrowers access more favourable Personal Loan interest rates, depending on their eligibility and lender policies.
Shift Towards Experience-Led Spending
For newlywed couples, travelling together often becomes a special milestone in married life. This growing trend is driven by the desire to create memorable shared experiences, along with the influence of social media and evolving lifestyle aspirations.
Many millennials no longer view their honeymoon as a luxury. Rather, they perceive it as an investment in their relationship and experiences. By paying affordable EMIs, couples can plan their dream honeymoon without compromising on their preferred destination or financial comfort.
How a Travel Loan Works for Honeymoon Financing
A travel loan is a collateral-free Personal Loan that helps cover major travel expenses. The lender decides the loan amount based on the borrower's income, credit rating and capacity to repay.
Once sanctioned, the loan amount is deposited into the bank account, and the borrower needs to repay it through fixed monthly payments over a selected period of time.
What Does the Travel Loan Cover?
A Personal Loan for a honeymoon can be used to cover expenses such as flight tickets, luxury hotel stays, visa fees, travel insurance, sightseeing, and adventure activities. It may also help manage dining and other travel-related expenses during the vacation.
Additionally, couples have the flexibility to use the funds for both pre-trip bookings and on-ground expenses according to their travel plans.
Estimating the Right Loan Amount
It becomes a burden when borrowing more than the required amount. The EMI becomes unnecessarily high to repay. For these reasons, it's important to make a clear budget. It should include expenses such as flights, accommodation, food, local transfers, and an additional contingency amount for unexpected costs.
Couples can also try different loan amounts and repayment tenures using a Personal Loan EMI calculator. This helps them choose an EMI plan that fits comfortably within their monthly budget after marriage.
Benefits of Using a Personal Loan for Couples’ Travel
A travel loan offers several advantages over using emergency savings or relying on high-interest credit card debt. Fixed EMIs, transparent charges, and quick disbursal make it a convenient option for managing travel expenses and making timely bookings.
Most lenders also offer an online application process, allowing couples to receive funds within 24 to 72 hours after approval, subject to eligibility and documentation.
Preserving Savings and Investments
Fixed deposits and mutual funds can be used to accomplish a long-term financial target. These options are not suitable to achieve the financial target needed for a honeymoon trip.
In such situations, a Personal Loan can help couples preserve their savings and investments while managing travel expenses through affordable EMIs. Instead of making a large lump-sum withdrawal, couples can repay the loan gradually. This allows them to continue their long-term financial planning during the early years of their career and married life.
Lower Cost Than Credit Cards
Credit card interest rates in India can often range between 30% and 48% per annum. However, this also depends on the issuer and the amount of balances that are not repaid on time. In comparison, personal loans generally offer lower interest rates, making them a more cost-effective option for managing travel expenses.
Personal loans also come with fixed EMIs and a structured repayment schedule, helping borrowers plan their finances more efficiently than revolving credit card debt.
Flexible Tenure
The loan tenure can range from 12 to 84 months, depending on the lender’s policies and the borrower’s eligibility. Generally, a shorter tenure may result in lower overall interest costs, while a longer tenure can reduce the monthly EMI amount.
Couples can choose a repayment tenure based on their combined income and overall financial commitments. For newlyweds, this flexibility can be especially helpful while managing expenses and setting up a new household.
Read Also: How to Plan Your Honeymoon: Top 5 Useful Tips
How to Apply for a Travel Loan in India
Most NBFCs and banks today offer a fully digital application process. Those planning to finance their honeymoon travel expenses can apply for any Personal Loan online, simply from a mobile phone or a laptop.
Below are simple steps to follow to apply for a travel loan:
- Visit the official lender website or app and click on the “Apply” button to apply for a Personal Loan.
- Fill in basic details such as your name, contact information, employment status, and monthly income.
- Estimate your EMI using a Personal Loan calculator based on your preferred loan amount and repayment tenure.
- Upload the required KYC documents, such as your PAN card, Aadhaar card, address proof, and recent income proof.
- Once the loan is approved and verified, the funds are disbursed to your registered bank account, subject to lender policies.
To Conclude
Planning a honeymoon by availing a travel loan becomes a practical solution for starting married life without compromising any savings. By choosing the right lender with a suitable repayment plan, the couple can enjoy their dream vacation. Before applying for a loan, borrowers can use the Personal Loan calculator to plan the EMIs.
Explore Poonawalla Fincorp’s Personal Loan for travel, offering competitive interest rates, flexible tenures, and a fully digital application process. Apply now and plan your honeymoon with ease!
FAQs
How does a travel loan differ from a regular Personal Loan in India?
A travel loan is a type of Personal Loan intended for travel-related expenses. However, its structure, eligibility criteria, and interest rates are generally similar to those of a standard unsecured Personal Loan.
What credit score is needed to qualify for a travel loan in India?
Most banks and NBFCs in India generally prefer a CIBIL score of 750 or above for Personal Loan approval. Applicants with lower scores may still qualify, depending on the lender’s policies; however, they could be offered higher interest rates.
How early should we apply for a travel loan before the honeymoon?
It is advisable to apply at least 30 to 45 days before the trip to allow sufficient time for loan approval, fund disbursal, and advance travel bookings.
Are travel loan EMIs eligible for any income tax deduction?
No, EMIs paid on a Personal Loan taken for honeymoon or leisure travel purposes are generally not eligible for tax deductions under the Income Tax Act.
What happens if a travel loan application gets rejected?
A travel loan application may be rejected due to factors such as a low credit score, insufficient income, or existing debt obligations. Applicants can improve their eligibility and reapply after addressing these issues.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply