Travel loans are a type of personal loan that are provided to people seeking financing for their travels. These loans are meant to enable a person to travel to a destination for business or personal purposes. All major banks in India provide loans for travelling either exclusively as travel loans or a general Personal Loan which can be used for traveling expenses.
The loans are generally unsecured in nature and are offered without the need for any guarantor. Some banks do ask for guarantor and/or collateral, however this is usually the case with higher loan amounts in excess of Rs.2 lakhs. Both public and private sector banks in India offer travel loans to eligible applicants so as to help them realize their dreams of traveling to various destinations.
Travel loans may or may not have destination-based eligibility criteria, i.e. foreign travel only or domestic travel only. In case there are no limitations on using the funds, you may use them for traveling to any destination, both domestic and abroad. You should check with each bank to know the criteria for their loans.
There are minimal documentation requirements for applying for this loan. You need to furnish the following to initiate the application process:
Apart from these, you may be required to furnish details of your trip such as air fare, accommodation bookings, travel plans etc. Some banks ask for this information and you should have the documents ready in case your lender demands to see the expected expenses.
Travel loans are a great way to explore new places and go where you always wanted to go. Apply for one today to enjoy the best of the world.
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The millennials are utilising the easy and fast personal loans offered by peer-to-peer lending companies to finance their international travels and recurrent weekend getaways. In fact, the personal loans taken by the youths for travels account for 12% to 20% of the total loan portfolio of the finance companies. Mostly salaried individuals who are between the age group of 28 to 35 are opting for these loans to meet their traveling needs. Millennials are considering the peer-to-peer lending platforms to avail these loans because of the minimal documentation process, long tenure, and flexible EMI repayment schedule.
These platforms connect the lenders to the borrowers and conduct the lending process through a simple process. The borrowers just have to submit an online application along with some supporting documents and the PAN number. Moreover, these platforms make use of social media and other unconventional mediums to know the creditworthiness of the borrower, unlike the traditional banks. As a result borrowers with low credit score get the required travel funding. These loans have now made it possible for the millennials to visit more expensive locations than before.
6 August 2018
