7 Tips to Get Your Travel Loan Approved Fast

If your travel loan was rejected, preventative steps like checking your credit score, clearing outstanding debts, and ensuring accurate documentation will improve your chances of approval. Additionally, applying for a realistic loan amount and selecting the right lender can make a big difference. This blog outlines seven smart moves to help you get approved on your next travel loan application.

7 Moves to Get Approval on Your Next Travel Loan

Keeping these 7 tips in mind will help you strengthen your credit profile and increase your chances of getting your next Travel Loan sanctioned.

1. Check Your Credit Score Before Applying

Before you file another Travel Loan application, download and review your credit report and score. Lenders often reject Travel Loan requests based on a low credit profile, as it’s their primary indicator of your financial discipline.

The idea is to spot potential reasons for rejection across your profile, including a low score, irresponsible financial behaviour, or errors on your report. These will help you understand what remedial steps to take before reapplying.

It’s also crucial to monitor your credit report and check for any errors, for example, loans that are incorrectly associated with you or closed accounts still appearing as active. When you detect such discrepancies, dispute them straight away to mend your score.

Also Read: Smart Ways to Fund Your Travels in Your 20s

2. Clear Outstanding Debts and Lower DTI Ratio

If your Travel Loan was rejected, take a close look at your unpaid loans or high credit card dues. Lenders assess your Debt-to-Income (DTI) ratio; an already-high ratio just means a new loan might overstretch your finances. It’ll portray you as a risky borrower, leading to more rejections than approvals.

Reduce your existing financial obligations by paying off high-interest credit card balances or smaller personal loans. This demonstrates to lenders that you are proactive about managing your finances. In turn, this boosts your eligibility for a Travel Loan and improves your overall credit standing.

3. Improve Your Income Proof

Pay close attention to your income proof, since lenders prefer applicants with stable and adequate monthly income when sanctioning a Travel Loan. This assures them that you have a regular source of funds to repay the loan.

Ensure all your documents are organised and up to date before applying, as any inconsistencies can lead to quick rejections. This includes your latest salary slips (usually for the last 3-6 months), bank account statements showing salary credits, and recent Income Tax Return (ITR) forms. Visit the bank to update your passbook with your current name and address, and obtain the latest bank account statements if needed.

4. Rectify Documentation Errors

Double-check all your documentation to ensure complete accuracy before you submit it. Simple errors, outdated information, or incomplete records are common reasons for Travel Loan rejection. A simple mismatch in your name across documents or an old address can cause delays or an outright refusal.

Ensure you have the following documents updated:

• Identity Proof: PAN Card, Aadhaar Card
• Address Proof: Latest utility bill, passport, or rental agreement
• Income Proof: Salary slips, bank statements, and ITR Forms

Take further steps, like linking your PAN with your Aadhaar if you haven’t yet; this enables e-KYC verification, expediting the loan sanctioning process.

Also Read: How to Use Travel Loan for Your Dream Destination

5. Avoid Multiple Simultaneous Applications

Applying for a Travel Loan to different lenders at once can hurt your credit score, especially right after a loan rejection. Each time you apply, lenders perform a ‘hard enquiry’ on your credit report, temporarily lowering your score. Naturally, multiple enquiries in a short span have a greater impact and also make you appear credit-hungry to lenders.

This is also crucial given the RBI mandate for all lenders to update credit records every 15 days, i.e., more frequent updates to your credit profile. Immediately issue a ‘cooling off period’ for around 4 to 6 months to help your profile stabilise. Use this time to work on increasing your credit score by lowering your debt.

6. Choose the Right NBFC or Lender

Different NBFCs and banks have varying eligibility norms and approval criteria. Some institutions have a lower risk appetite and might have very strict requirements, while others may be more flexible regarding income levels or employment history.

Now that you’ve understood what issues could be holding your approval back, research for a lender that matches your profile and offers clear, transparent terms. It’s also important to find out their minimum credit score and income requirements beforehand to ensure you fit their criteria. It greatly increases your chances of securing the Travel Loan you need.

7. Apply for the Right Travel Loan Amount

Avoid asking for a Travel Loan amount that’s higher than what your eligibility permits. It can be tempting to apply for a larger sum to cover all possible expenses. However, this can be a red flag for lenders if the loan amount seems disproportionate to your income. On the other hand, applying for a realistic value shows you have done your financial planning and significantly reduces the chances of rejection.

Use the online eligibility calculators available on most lender websites to gauge your eligibility; if your eligibility is low, the calculator automatically recommends a smaller amount. Instead of being adamant about the final amount, see if your travel plans can be tweaked to match a slightly lower budget.

Also Read: Travel Loan to Go to 5 Amazing Destinations in India This Winter

To Conclude

Loan rejection is simply a signal to reassess and improve your loan application. By fixing documentation errors, lowering existing debt, checking your credit score, and choosing the right lender, you can turn a ‘no’ into a strong approval on your next attempt. Strengthening your financial profile not only increases your eligibility but also ensures faster approval and better terms.

If you’re looking for a Travel Loan, you can opt for Poonawalla Fincorp to fund your travel plans with minimal documentation and quick processing.

FAQs

How soon can I reapply for a Travel Loan after a rejection?

It is best to wait at least 3-6 months before reapplying. This period gives you sufficient time to improve your credit profile and address the specific issues that led to the initial rejection.

Will a rejected loan application damage my credit score?

A rejection itself is not recorded on your credit report. However, the lender’s ‘hard enquiry’ during your application can slightly lower your score for a few months. Multiple enquiries in a short time can have a more noticeable impact.

What is a good credit score for a Travel Loan in India?

A credit score of 750 or higher is generally considered excellent by most lenders in India. It increases your chances of approval and helps you secure more favourable interest rates and terms.

Can I get a loan if my salary is low?

Yes, it is possible. Many lenders have a minimum monthly income requirement, often starting around ₹30,000. Your final eligibility will also depend on your credit score, existing debts, and city of residence.

Why is my employer’s reputation important for a loan?

Lenders view employment with a reputable and stable company as a strong indicator of job security and a consistent income. This reduces their perceived lending risk and can significantly improve your loan eligibility.

What is a Debt-to-Income (DTI) ratio?

The DTI ratio is the percentage of your gross monthly income used to pay your existing monthly debt obligations, like EMIs and credit card bills. It helps lenders assess your capacity to handle new loan repayments.