Travel Loans in India
A Personal Loan for the purpose of financing a vacation or travel in India or abroad is known as a Travel Loan or a Vacation Loan. Both public and private sector banks are constantly making attractive travel loan offers to their customers with a view to making their travel experiences worthwhile.
When and why should you take a Travel Loan?
The following are the reason to take a Travel Loan
- You are keen to enjoy life with your loved ones and no longer want to postpone your holiday plans due to want of immediate funds
- You are reluctant to spend lump-sum money on luxury vacation expenses
- You are not willing to liquidate your savings and lose interest income on long term savings instruments such as Fixed Deposits, NSCs to spend on your holidays
Options to avail Loan for Travelling
Travel companies such as MakeMyTrip and Yatra.com offer travel loan packages through their websites to customers by partnerships with banks and credit card companies. However, experts suggest borrowers should check other options and deals offered by banks directly on their website or from Fintech companies and online loan providers.
1. Personal Loan from Banks
You can take a personal loan up to Rs 5 lakh, which also depends on your loan eligibility and subject to the limit of actual travel expenses. You can also enhance the holiday loan amount by offering the security of liquid instruments such as Fixed Deposits, Kisan Vikas Patras (KVPs), and National Savings Certificate (NSCs). These loans are also easy to process and come with minimal paperwork. The tenure of these loans ranges from 3 to 24 months. Depending on the lender you opt for, the interest rates of these unsecured loans vary, and range between 11 to 20%, with a loan processing fee of 1-3%. The interest rate on personal loans offers a lower interest rate than credit cards.
2. Credit Card based EMI Loans
Use your credit card during your travel and convert the outstanding amount to a credit card EMI loan. As these loans are with your existing credit card, they have no or minimal paperwork. These loans, however, charge relatively higher interest rates compared to personal loans. The interest rate ranges from 24 to 36%. The tenure of these loans ranges between 3 and 12 months. Unlike personal loans, the eligibility of the loan amount is limited to the credit limit on the borrower’s card and also on the destination of travel.
Best Travel Loans Lenders in India:
1. ICICI Bank Holiday Loan:
- This scheme allows you to choose any destination and provides a maximum ICICI Personal loan limit of 20 Lakhs.
- The loan application and sanction processes too, are hassle-free and quick. No collateral or any form of security is required either. Interest rates start at 10.99% annually.
2. Tata Capital Travel Loan:
- The Tata Capital Personal Loan scheme will finance your trip to just anywhere in the world. You get financial assistance of up to 25 Lakhs. This, however, depends on your eligibility for a Personal Loan.
- Interest rates range between 11.49% and 21%. No guarantee or collateral required either.
3. Bajaj Finserv Personal Loan for Travel:
- Take your family for that dream vacation anywhere in the world. What’s more, get your financing in 5 minutes flat! Bajaj Finserv Personal Loans available up to a maximum limit of 25 Lakhs and interest rates start at 12.99%.
- Also, Bajaj Finserv takes care of your hotel accommodation and ticket bookings.
4. HDFC Bank Personal Loan for Travel:
- HDFC Bank too, is at your disposal to make your travel dreams come true. You get to travel anywhere in the world with a maximum HDFC Personal Loan limit of 15 Lakhs with interest rates starting at 11.39%.
- The loan is sanctioned in an unbelievable 10 seconds for HDFC customers. Non-HDFC clients get clearance in maximum four hours. As a borrower, you are also given the option of choosing your repayment tenure.
5. Axis Bank Holiday Loan
- Axis Bank Holiday Loan which is available in the range of Rs. 50,000 to Rs. 15 lakh.This vacation loan comes with an effective interest rate of 15.5%-24%.
- Additionally, this product offers 2 months moratorium facility wherein no principal is charged; only interest would be levied during the period.
As you opt for a travel loan, not only do you make your travel dreams come true but enjoy some benefits as well. The fixed interest rate keeps your repayment amounts the same and makes it easier for you to budget your vacation. It also gives you a clear repayment structure because you exactly know when end date has been set and the financial commitments that come with it.
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