Planning For a Travel Loan? Here Are the Key Benefits & Ultimate Features of a Travel Loan!
Tired of working and desperately need a break? What better than to take that much-awaited vacation! If finance is an aspect that worries you, opting for a travel loan is always an option. Not going on a trip and missing out on all the fun is definitely not something you would want to regret later, especially when there are lenders out there offering great travel loan plans.
For those who are not quite familiar with this type of loan, a travel loan is meant to cover the expenses that you will incur on the trip. Borrowers find these loans to be super-helpful as they provide the required funds, which helps in not having to make a dent in personal savings. The loan can then be paid off in instalments over a specific tenure.
Take a look at how applying for a travel loan can be beneficial:
- A travel loan is a much better alternative as compared to a credit card
Many wonder whether it would be much more convenient to simply use their credit card for the expenses of the trip rather than apply for a personal loan for travel. Now, while this is an option you can exercise; do note that the credit limit on your card might be lesser than that of a loan. In addition, your credit card might also have a high processing fee, not to mention the fact that it would need to be activated for international travel. Instead, you can simply go for a travel loan from a lender that offers a competitive interest rate.
- All your travel expenses are covered
While going on a trip, there is a host of expenses that you would have to pay. First, you would need to book tickets for travelling. Next, you will have to take care of accommodation expenses. After that, expenses for sightseeing, shopping, food, excursions, and so on could rack up quite the bill. A travel loan could take care of all these expenses so you can simply enjoy the trip without having to keep checking your savings.
- Lenders require minimal documentation for the loan
One of the biggest advantages of applying for a travel loan is that most lenders have set a minimal documentation procedure for applicants. This means that if your friends have just taken a spontaneous plan of going for a trip, you can get the loan in no time and make arrangements for the trip. Usually, all you need are documents that act as proof of identity, employment, and address.
- No need to provide any collateral
Since a travel loan is an unsecured type of loan, lenders do not require borrowers to pledge any kind of collateral as security. There is usually no need of having a guarantor while applying for a travel loan. This makes the entire process of getting the loan much easier.
Therefore, these are the benefits that a travel loan can bring! Before applying for one, do make sure to use a personal loan EMI calculator. This will give you an idea of the personal loan EMI payments beforehand, so you can decide whether the loan plan is suitable or not.