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Overview about Travel Loan

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.

Types of Travel Loans

• Foreign travel: Foreign travel loans are usually available for high amounts and cover travel related expenses such as airfare, bus/train fare, sightseeing, accommodation, pilgrimage, excursions, tours etc. Individuals can claim the loan amount for them and their dependents/relatives.
• Domestic travel: Similar to foreign travel loans, these are also available to individuals and their families as per individual criteria of different banks. These are generally available for a lower amount than foreign travel loans.
• Senior citizens: There are a few schemes available that cater specifically to the travel expenses requirement of senior citizens. These loans are available at preferential interest rates.
• Personal loan: A personal loan can also help you with your traveling expenses. These are Unsecured Loans that are offered by almost every bank in India. The funds from these loans can be used for various purposes including traveling.

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.

Features of Travel Loan

• Loans available from as low as Rs.10,000.
• Loan amount disbursed as per requirements.
• Loan repayment tenures ranging from 12-60 months.
• Processing fee applicable as per individual banks’ terms.

Benefits of Travel Loan

• Cheaper form of credit than credit cards.
• Flexible repayment tenures.
• Quick and hassle-free processing of applications.
• Loan amount available as per needs.
• Loan prepayment option available from banks as per the terms and conditions.

Documents required for Travel Loan

There are minimal documentation requirements for applying for this loan. You need to furnish the following to initiate the application process:

• Address proof
• Identity proof
• Passport size photograph

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.