Planning a trip abroad? Here's why you should finance it with a personal loan

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An international trip allows you to experience a whole new culture, environment, and cuisine and promises unforgettable memories too. As per the UN World Tourism Organisation, over 50 million Indians are estimated to go overseas in 2019. 

And while travelling abroad demands a sizeable sum, you can fortify your finances by availing travel finance from a third party. Holiday loans are a great way to fund your expenses as they are collateral-free, and you can use the loan amount as you desire. In fact, according to a recent study, travel is among the top two reasons why people are applying for personal loans. 

Here’s a look at why a holiday loan is fast emerging as a popular way to finance your travel. 

You can get an ample sanction to explore well-known destinations

When you take a holiday loan, you get a large sanction, enough for all your travel-related expenses whether you’re visiting the USA, Europe or South East Asia. Leading financial institutions such as Bajaj Finserv offer Personal Loans for Travel of up to Rs.25 lakh, enabling you to manage all big-ticket expenses that come your way. Depending on the place you are going to, the sanction should suffice for round-trip air tickets, hotel accommodation, tour packages, food and other ancillary expenses.

 
You can repay the loan comfortably over a flexible tenor 

Personal loans offer a flexible tenor, making it possible for you to split the cost of your holiday over many months. For instance, Bajaj Finserv offers tenors ranging up to 5 years and you can choose a term according to your budget. While selecting the tenor, keep in mind that a longer tenor decreases your monthly payments while a shorter tenor leads to higher EMIs. However, the former increases the total interest payable. If your budget allows you to pay high EMIs, close the loan quickly by choosing a shorter tenor. You can use an online personal loan EMI calculator to decide on the tenor and the other loan particulars.

You can obtain funding for your dream vacation on simple eligibility terms

Easy-to-meet eligibility criteria set by personal loan lenders makes a holiday loan accessible. For example, you can obtain funding from Bajaj Finserv so long as you are between 23 and 55 years of age, have a stable source of income and meet the minimum salary requirements. Further, if you have a CIBIL score of 750 or more you can leverage it to secure sizeable, low interest personal loans, any time you require financing. Additionally, since a travel loan is a collateral-free loan, the documentation requirements are minimal. Generally, KYC documents, salary slips, an employee ID card, and bank statements of your salary account suffice. 

You can manage your expenses on the go with the Flexi Loan facility

To help you manage unforeseen travel expenses, Bajaj Finserv offers the Flexi Loan facility. It allows you to borrow and repay the funds more flexibly. Thanks to this facility you can make multiple withdrawals from your sanction without submitting fresh applications. Interest is levied only on the amount withdrawn and not on the entire sanction. Also, you can part-prepay the loan when you have surplus funds without any extra charges. Moreover, you can choose to service interest-only EMIs for an initial part of the tenor in order to repay the loan without burdening your budget.

These features are proof of why a personal loan for travel is an attractive way to finance your next overseas getaway. In fact, when you choose Bajaj Finserv you can even get approval in 5 minutes, followed by disbursal within 24 hours. Therefore if a vacation is on the cards, don’t hesitate to check your pre-approved offer from Bajaj Finserv. Doing so helps you finance your trip without any delay as you can unlock a customised, instant financing deal.

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