Travel Loan

Travel loans are nothing, but personal loans taken for the specific purpose of travelling. Most lenders in the market provide travel loans for both domestic and foreign travels. If you are planning to take one anytime soon, you can check the following list and pick one to fund your exotic dream vacation.

Comparison of Best Travel Loan Interest Rates 2019

*Interest rates may vary according to the terms and conditions of lenders

Travelling is something most people dream about. Young working professionals in our country often look forward to taking a break from their busy work lives and travel to a new place for a vacation. Travel packages to many popular locations are getting increasingly popular among young travellers in India. Though travelling is a highly desired activity, many people often avoid or postpone it due to shortage of funds. Travel loans are now offered by many popular lenders in the market so that money is not a hindrance when it comes to taking your dream vacation.

HDFC Bank

HDFC Bank is one of the largest private sector lenders in India. The bank is renowned for its different types of loan products. The bank offers affordable personal loans suitable for salaried and self-employed professionals in the country. If you are looking for a loan to fund your vacation, you may use the loan offered by HDFC to proceed with your travel plans.

• HDFC Bank offers instant loan disbursal within just 10 seconds for customers.
• You can get personal loans from HDFC with affordable interest rates.
• The documentation process is simple and easy for salaried customers. The entire application process is hassle-free.
• HDFC offers multiple repayment modes including cash, cheque, online transfer, etc.

*Service tax or GST may be applicable over the charges given here

ICICI Bank

ICICI Bank is another top lender in the country that offers different types of personal loans for customers. The bank does not have any restriction on how the loan amount can be used. Hence, it is possible to fund your dream vacation with the help of a personal loan from ICICI Bank. The bank offers loans at attractive interest rates, and these loans can be accessed from anywhere in the country.

• The holiday loan offered by ICICI Bank can be easily availed through the bank’s official website.
• For pre-approved customers, the bank promises instant loan disbursal within just 3 seconds.
• ICICI is one of the few banks in the market that offers tailor-made personal loans for holidays and vacations.

*Service tax or GST may be applicable over the charges given here

Tata Capital

Tata Capital is one of the popular non-banking financial corporations in the country. The company offers a specialised travel loan for salaried professionals in the country. You can use the funds offered here for both international as well as domestic travel. These loans are available with nominal fees and charges. The applicant must be working in the same job for at least 6 months in order to apply for this loan.

• Tata Capital offers loans that are disbursed to the borrower’s account within just 2 days.
• Anyone with a monthly salary of Rs.20,000 can apply for this loan.
• The company provides borrowers with the control of how they can repay the loan amount.
• The company does not ask for any extra security or collateral to provide travel loans.

*Service tax or GST may be applicable over the charges given here

Bajaj Finserv

Bajaj Finserv is another financial service provider that offers loans specifically for travel purposes. The loan amount obtained from Bajaj can be used to manage your travel bookings, accommodation, etc. The flexible repayment option offered by the company allows borrowers to pay only interest as EMI and reduce the EMI by up to 45%.

• Bajaj Finserv offers personal loans for travel purposes with very minimal documentation.
• Pre-approved loans from Bajaj Finserv are approved within just 5 minutes.
• It is possible to get the loan amount within just 24 hours of approval.
• You can use your online account to manage and track your repayments easily.

*Service tax or GST may be applicable over the charges given here

Axis Bank

Axis Bank is another popular lender in the private sector. The bank offers a wide range of products for its customers. It offers a tailor-made holiday loan that comes with plenty of benefits to customers. This is an ideal product worth considering if you are looking for a loan to fund your domestic or foreign vacation.

• The holiday loan from Axis Bank comes with a moratorium period of 2 months. Here, no EMI would be charged for the first two months of the loan tenure.
• The loan process is simple and very easy to access for customers.
• This loan is offered for all salaried employees with a minimum income of Rs.15,000 per month.
• Working professionals over the age of 21 years can apply for this loan.

*Service tax or GST may be applicable over the charges given here

Eligibility

Since travel loans are similar to personal loans, they are mostly offered for working professionals in the country. Some of the lenders in the market provide these loans to self-employed professionals with a steady income. The common eligibility criteria for these loans are listed as follows:

• The applicant must be at least 21 years of age.
• Salaried professionals must be employed in the job for at least 6 months before they can apply for these loans.
• Your credit score must be acceptable to the lender. Most lenders prefer individuals with a credit score of at least 700.
• Most banks have specific income criteria for applicants to avail these loans. It is better to have a monthly income of at least Rs.20,000.
• To avail pre-approved loans, the individual must already be a customer of the concerned bank.

Documents Required

Most of the top lenders in the market provide travel loans to customers with very minimal documentation. However, some of the crucial documents must be submitted (even electronically) while applying for travel loans. Some of these documents are listed as follows:

• Identity proof
• Address proof
• Income proof (payslip or IT returns)
• Photographs

The exact documents required by companies for travel loans may vary from one company to another. You may check the official website of the lender or enquire with a company official to know the list of documents that must be submitted.

Things to Consider before Applying for Travel Loans

You must consider the following things before you apply for a personal loan for the purpose of travelling:

• You need to estimate the correct budget for your travel before applying for a loan. You can check the accommodation costs, ticket costs, food expenses, etc., online while applying for a loan. It is better to set the loan amount at least 20% higher than the trip budget you have estimated.
• Since travel loans are personal loans, they are typically offered with higher interest rates than home loans and other secured loans. You need to research the market to find the best loan product suitable for your travel needs.
• Make sure that the EMI amount fits within your monthly budget. If you are not able to afford the EMI within your monthly budget, you will face difficulties repaying the loan to the lender.

How to Apply?

• Applying for a travel loan is a very simple process. Most banks now provide online applications for personal loans.
• You can simply visit the official website of the lender and fill up your personal details to apply for a travel loan.
• You may also submit your documents online and get instant approval from the company.
• You may also visit the branch office of the lender and speak to an official for a loan application.
• If you need any assistance in the loan application process, you may check with the customer service department of the lender.

FAQs

1. Are there any restrictions on how the loan amount is spent?

Once you have obtained the loan amount, you can use it any way you want. If you are using it for travel purposes, you don’t have to provide any information to the company about how much you have spent on various expenses.

2. How long do I have to wait to get the loan amount in my account?

Most lenders offer instant personal loans to customers. Approval is provided within a few hours. Loan disbursal is done within a maximum of one or two days. Hence, you can plan your travel accordingly.

3. What are the repayment modes available for travel loans?

Customers can choose to repay the loan amount through multiple modes. You may use post-dated cheques or pay cash to the company. The best way to repay the loan amount is through online transfer or by setting standing instructions.

4. Why should I provide my income proof to obtain these loans?

Since travel loans are unsecured, banks look for borrowers who have a low risk of defaulting on their loans. The income proof is obtained to assess the repayment capability of the borrower. This is also the reason why banks set a specific income requirement for applicants to apply for a travel loan.

5. How can I choose the tenure for my loan?

You may choose your loan tenure based on your repayment capability. If you can afford to pay a high sum every month, you can choose a low repayment period and pay off the loan early.