A travel loan is a collateral-free loan that many financial institutions provide in India. Top non-banking financial companies (NBFC) offer this credit facility to travel enthusiasts who want to go on their desired trips without compromising their finances. With technological advancements and fintech services, taking a travel loan has become extremely easy and quick. Now, you can download one of the best apps for Personal loans on your smartphone and apply for the required funding in minutes.
The following sections will explore the benefits of travel loans in India.
What is a Travel Loan?
Travel loans are Personal Loans specifically designed to finance travel-related expenses. You can borrow a travel loan of up to Rs 5 Lakh to explore new places, visit your dream destination, go on a honeymoon, to go for a vacation with family or friends.
You can use the loan to cover various expenses like air tickets, hotel accommodation, sightseeing, visa fees, etc. Once you receive your loan, you have a repayment tenure of up to 36 months to repay it in EMIs. That means you can manage your travel costs more confidently without paying their price upfront.
Benefits of a Travel Loan
You can apply using one of the best apps for Personal Loans, like Hero FinCorp and get the required funding within minutes. The entire process does not require any branch visits or paperwork. You can enjoy your trip without financial stress with instant funding through a Personal Loan for travel. Here are the major benefits of a travel loan.
- Customisable Loan Amounts
Travel costs may vary depending on the type, duration, and destination. Personal Loans recognise this requirement by offering customisable loan amounts of up to Rs 5 Lakh. Whether you are planning a budget-friendly solo trip or a luxurious vacation with family, choose an adequate loan amount that aligns with your particular travel requirements.
- Affordable Interest Rates
Contrary to the misconception that Personal Loans have high interest rates, loan apps offer competitive rates. With the increasing competition among Personal Loan lenders in India, you may secure a loan with the lowest possible interest rate according to your eligibility, credit history, and repayment capacity. Competitive interest rates make your travel dreams more attainable.
- Flexible Repayment Options
The flexibility of repayment is one of the key benefits of a travel loan. Reputable lending institutions understand that every borrower’s financial situation is different. Therefore, they provide flexible repayment options according to your monthly budget and repayment capacity.
For instance, you can opt for a short repayment period with bigger EMIs if you have enough disposable income. Conversely, if you have limited income, you must opt for a longer repayment period to reduce the size of your EMIs and pay them conveniently. An EMI calculator can help you select an EMI plan that aligns with your income flows.
- No Collateral Requirement
Unlike traditional loans that require some kind of security against the loan amount, Personal Loans for travel are collateral-free. You don’t need to pledge an asset to secure the loan. You don’t need to add a guarantor to qualify for the loan. The unsecured nature of Personal Loans makes them more accessible to a wider population who don’t have significant assets to pledge as security.
- Quick and Hassle-Free Processing
Time is important in today’s digital age. The best app for Personal Loans keeps this in mind when designing their application procedure. These apps make the application and approval process digital and paperless to facilitate quick and hassle-free processing. You don’t need to visit the lender’s office even once to apply for a loan or submit documentation. You can complete the application form and upload scanned copies of the required documents online for instant approval.
- Easy Access to Emergency Funds
While adventure and excitement are always a part of travel plans, emergencies may also arise during the trips. A travel loan is a financial safety net to handle unexpected expenses like medical emergencies, accidents, trip cancellations, etc. Quick access to funds during the trip alleviates stress and ensures a smooth experience.
- Transparent Terms and Conditions
Transparency is mandatory when applying for a Personal Loan for travel. Loan apps clearly outline all the terms and conditions, making them easily understandable for borrowers. Such transparency helps build trust between the borrower and the lender, fostering a successful financial relationship. Read the loan document carefully and enquire about hidden charges and other terms and conditions before accepting the offer.
- Boost the Credit Score
Timely loan repayment positively impacts your credit score. A high credit score demonstrates financial reliability and discipline, which are crucial factors lending institutions consider when evaluating loan applications. A healthy credit rating you build with a travel loan enhances your approval chances for future loans, opening up opportunities for lower interest rates and better terms and conditions.
- Simple Eligibility Criteria
Another reason Personal Loans are beneficial is their simple eligibility criteria. Most lending institutions’ eligibility conditions include age, income, work experience, profession, etc. You can quickly apply for a loan with minimal documentation if you fulfil the eligibility criteria.
The benefits of travel loans are appealing, they let you fulfil your travel dreams without any financial stress. A travel loan from Hero FinCorp provides instant access to funds with ample loan amounts, repayment flexibility, and attractive interest rates to accommodate your needs. The transparent process and minimal documentation save you valuable time and effort.
Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader’s discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.