The last two years have been very stressful for all of us due to the COVID-19 pandemic. The pandemic ravaged the entire world and resulted in massive loss of lives and the economy. Most of us were forced to stay inside our homes, and working from home became the new normal. We also had to cancel our vacation plans owing to the travel restrictions imposed by various governments around the globe and the fear of infection.
However, now with the pandemic dwindling and the restrictions being lifted by the governments, we can start planning for our next vacation. After all, a good outing with our friends or family members is what we all need right now. Spending some days amid the mountains or along the beaches can help you forget everything and refresh your mind.
But planning a vacation involves a lot of financial obligations. From booking flight tickets and hotel accommodation to transportation to paying for activities and adventures during the trip to eating and shopping, all expenses may snowball into a significant sum of money. Additionally, if you're going out with family, these costs will be multiplied by your family's size.
On average, an abroad trip costs approximately Rs. 1 lakh to Rs. 2 lakh per person, depending on location and luxury. It means that if you have a family of five, you may require somewhere around Rs. 6 to 10 lakhs, and arranging this much money isn't that easy. You may have to either break your savings or sell off a few of your assets or investments.
You can also avail of a personal loan to fund your vacation expenses. You can apply for a personal loan for vacation with any registered bank or non-banking financial corporation (NBFC). You can also download personal loan apps on your smartphone to get an easy online loan for travel from the convenience of your home.
Below are a few reasons why choosing a personal loan for a vacation can be a good idea:
1. You can use it for any purpose
You may incur various types of expenses while planning your vacation and during your vacation.These may include booking flight tickets and hotel accommodation, paying for transportation from one place to another, paying for activities such as sightseeing, adventure sports, eating, shopping, etc.
You may also incur unexpected financial liabilities due to a sudden emergency during your trip. For example, a member of your family may fall ill or get injured; you may lose your baggage or passport, etc.
With a personal loan for a vacation, you can handle all these expenses without any hassles. Personal loans are multi-purpose loans with no restrictions on their end-use. A lender will never ask you how you’re going to use your loan amount while approving your personal loan application.
2. Repay the amount in easy EMIs
Like any other loan, you can repay a personal loan in Equated Monthly Instalments (EMIs). This way, you can plan and enjoy your dream vacation without feeling any additional burden on your finances. Moreover, you're not required to break your savings or liquidate your investments. You can earn and pay your EMIs every month.
The EMI amount you need to pay for your personal loan depends on several factors, including your loan amount, tenure, and interest rate. So, it's crucial to choose the best personal loan offer to keep your EMIs minimum.
If you don’t want to pay your EMIs after a few months, you can foreclose your personal loan account by paying the balance amount. However, your lender may charge you a nominal foreclosure charge if you wish to pre-close your personal loan account before the end of its tenure.
3. You can choose your tenure as per your repayment capability
Another benefit of choosing a personal loan for vacation is that it comes with flexible tenure. You have the option to select your personal loan tenure as per your repayment capability. Generally, personal loan tenures range between 12 and 60 months. You can also choose a longerterm for your personal loan, provided your lender agrees.
You need to be very careful while choosing your loan tenure. Opting for a very long term may decrease the EMIs, but you would have to pay higher interest on your loan amount. Whereas if you opt for a short tenure, your EMIs will go up. So, try to create a balance between your loan tenure and EMIs. Make sure that you can easily afford the EMIs and decide accordingly.
4. No need of pledging any collateral
Unlike home loans or car loans, personal loans are collateral-free loans. It means that no security or guarantor is required to apply for a personal loan. Hence, you won't have to pledge any personal or business assets to qualify for financing. In other words, you don't have to put anything at stake to avail of funds for your vacation.
If you meet the lender's eligibility criteria and have a good credit score, you can apply for an online personal loan for travel and receive the amount in your bank account in just a few minutes.
5. Easy eligibility criteria and minimal documentation
Personal loans for vacations entail more accessible eligibility criteria and minimal paperwork than other financing modes. Although personal loan eligibility criteria vary from lender to lender, you need to fulfil primary age, monthly income, and credit score requirements.
Some lenders even provide pre-approved personal loans based on your credit profile. You can avail of such personal loans without proving your eligibility to the lender since these loans are pre-approved.
The documentation process for a personal loan is also very simple and minimal.
Personal loan documents include:
The final words
A personal loan for vacation seems to be the right choice to fund your next family trip with these benefits. However, it's crucial to choose your lender wisely after comparing them based on several factors, including interest rate, loan tenure, loan amount, and customer support services.
With Poonawalla Fincorp, you can avail of a gamut of loans, including personal loans, home loans, and business loans. Our loans come with benefits like competitive interest rates, convenient tenures, and flexible repayment systems.
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